(The Associated Press circulated the following article by Chet Brokaw on September 13.)
PIERRE, S.D. — State lawmakers said Monday they are frustrated that they cannot get some details about the sale of the state-owned railroad line to the Burlington Northern Santa Fe Railway.
They also said they worry the Legislature may have little control over how state government might spend the $41.6 million from the sale.
Members of the Legislature’s Government Operations and Audit Committee noted that then-Gov. Bill Janklow persuaded the 1980 Legislature to raise the state sales tax temporarily to buy track being abandoned by The Milwaukee Road. The state later reached an agreement under which Burlington Northern would operate trains on the core line.
”The taxpayers bought it. Now we’re selling it, and we’re telling the taxpayers you can’t know one damn thing about it. It’s totally wrong,” said Sen. Jerry Apa, R-Lead.
Lawmakers have said that since the Legislature was involved in purchasing the core line, it also should have been consulted about the sale. Legislators at Monday’s meeting complained they cannot find out details of the proposed deal.
Sen. John Koskan, R-Wood, said the state officials who negotiated the deal with BNSF appear to be making commitments the Legislature will be forced to fund.
In April, Gov. Mike Rounds announced the state and BNSF had reached an agreement allowing the railroad to buy the core line, subject to details being worked out.
State Transportation Secretary Judy Payne said the settlement will not be final unless BNSF works out operating agreements with a number of short-line railroads that want to use track. The settlement also requires the state to make improvements to some parts of the line if the sale becomes final.
The 386-mile core line being sold runs from Aberdeen to Mitchell, Mitchell to Canton, Canton to Sioux Falls, and Mitchell to Sioux City.
Payne said state law requires that any money received from the track sale must go to the state railroad trust fund, which generally can be used only for track maintenance, repair and related purposes.
Projections call for spending about $42.3 million on track maintenance and improvement projects this year, but that depends on whether the rail sale actually occurs, Payne said. Some of those improvement projects will be done only if the sale becomes final, she said.
Some details must be kept confidential under the deal signed with BNSF, Payne and Deputy Attorney General Roxanne Giedd said.
State budget officials told the lawmakers that if the settlement becomes final, the Legislature’s approval will be required before the state spends any of the sale money.