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PIERRE, S.D. (AP) — Proposals to expand Medicaid and raise South Dakota's teacher pay are expected to dominate the legislative session that begins when lawmakers return to Pierre on Tuesday.
The session — and especially the expansion plan — could expose discord among factions of South Dakota's Republican lawmakers, who hold the governor's office and have a strong grip on both chambers of the Legislature. Meanwhile, minority Democrats are celebrating that their two prime causes top the conversation at the Capitol.
State lawmakers must set the state budget during the session. Gov. Dennis Daugaard last month pitched a roughly $4.8 billion proposal for the upcoming budget year, including more than $80 million in new spending for a state that has better-than-expected revenues.
Daugaard outlined his plan — with several conditions — to broaden eligibility for the state's Medicaid program for disabled and low-income people at his budget address.
The proposal would pay for the state's share by expanding access to services that are fully funded by the federal government. It aims to reduce current state spending to free up funds for boosting potential enrollment by about 50,000 residents.
The complicated deal will take the backing of the federal government and South Dakota's Indian tribes, who would see more accessible and improved health care if the plan goes through because it depends on changes at the Indian Health Service. But some Republicans in the state Legislature, where the measure also requires approval, have already predicted it could face a tough path through the House of Representatives.
There are concerns that it could cost the state money and questions of whether the federal government can afford it, as well as philosophical opposition to expanding the program, said House Republican leader Brian Gosch.
Sen. Brock Greenfield, a conservative Senate Republican, said some GOP members will follow Daugaard's lead, but others will "remain consistent" in their opposition.
"Just because he's flip-flopped on the issue doesn't mean a lot of the legislators are going to be in a huge hurry to do so," he said.
In his budget address, Daugaard said he believes the state should seize the opportunity if the plan comes together, but acknowledged he shares concerns with lawmakers about the proposal.
It's also unclear how lawmakers will tackle increasing pay for South Dakota teachers, whose salaries are the lowest in the nation. A state task force on school funding said it would take at least $75 million to make teacher salaries competitive.
Daugaard has offered support for using new state money to increase teacher salaries, but specific proposals won't come until his State of the State address. There's more momentum this year than in previous sessions, said Senate Republican leader Corey Brown.
But the debate will be over whether it should come from existing funds or from a tax increase, Gosch said. Democrats, who will bring their own proposal on teacher pay, are happy because they believe a longstanding priority has shifted into reach.
"We've been working on those issues for a long time, and we've finally seen them come to a head here," Senate Democratic leader Billie Sutton said.
Other notable measures including proposals to help struggling South Dakota counties, including a plan to allow them to impose a sales tax. Counties' increasing costs, particularly from spending on courts and police, need to be addressed, said Rep. Kristin Conzet, a Republican who led a group last year studying county government.
But advocates acknowledge it will be a tough sell for counties when lawmakers are focused on teachers and Medicaid. Conzet said she hasn't yet decided if she would support the tax proposal.
"I consider us the third horse in the race right now," she said.
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