The Rural Lobbyist: ADRDL Funding Takes New Shape With Current Proposal.

The search for $58 million continues as do the discussions on how to fund the Animal Disease Research and Diagnostic Lab. If you recall, I have posted a few different funding proposals already in previous editions of the Rural Lobbyist but none of those methods have found favor with a majority of members of the House, Senate, Governor’s Office, and ag community.However, it appears that pieces of the different proposals could be used to reach that much need consensus. Currently, talks about funding the ADRDL have been focused on the idea of establishing an Ag Futures Fund to cover a sizeable portion of the lab funding. What is interesting is that the fund would continue to exist for future projects once the ADRDL has been paid off. Money going into the fund would come from a bargain agreed to in last year’s .5% sales tax increase. Built into that increase was a portion set aside for property tax relief. To put it in perspective, let’s say the increase hypothetically raised $100 million. Last year’s legislation designated 60% of that ($60 million) to education, the other 40% ($40 million) to property tax relief ($19 million to commercial, $14 million to residential, $7 million to agricultural).The fund would use the dollars set aside for agricultural property tax relief approximately $7 million. Currently, the actual bond payment for the lab would be roughly $3.3 million per year so the remainder of those funds would go back into the Ag Futures Fund.The reason this has become one of the more popular mechanisms is because it would eliminate the need to increase current fees on the agricultural community. The tax is already being collected now and touches every consumer in the state. Another big reason is the potential it creates for future ag infrastructure. If new projects arise there wouldn’t be a mad scramble for funding or threat of increased fees/taxes because a mechanism will have already been put in place.However, that revenue would not be the only money designated for lab funding. The lab would also receive one-time funding from the general fund and the Board of Regents. There would also be an increased pet food fee that would be placed on the companies licensing pet food in South Dakota. That fee would be used primarily for maintenance and repair costs on the new lab going forward.The discussion is certainly far from over as three separate bills will need to be passed through their respective committees and houses. SDFU has been and will continue to be at the table on behalf of our family farmers and ranchers.If you have anyone questions or comments on the ADRDL funding feel free to contact me, Matt, and I will be happy to talk with you.There will be more updates to come as debate on these bills begin and we near the end of the legislative session. Stay tuned!