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In March of 2013, urged by House Speaker Brian Gosch (R-Rapid City) and Senate Majority Leader Russell Olson (R-Wentworth), the South Dakota Legislature voted on a $5,000 per legislator increase in the yearly budget amounting to $500,000 additional dollars for salaries, travel, and other reimbursements for South Dakota Representatives.<ref name="GOP Spends Tax Dollars on ALEC Dues, Trips; Dems Reject Koch Brothers Influence">[http://madvilletimes.com/2013/04/gop-spends-tax-dollars-on-alec-propaganda-trips-dems-reject-koch-bros-influence/ GOP Spends Tax Dollars on ALEC Dues, Trips; Dems Reject Koch Brothers Influence], South Dakota, ''Madville Times'', April 23, 2013.</ref> In addition to this large budgetary increase for the benefit of State Legislators (as compared to the cuts to education and healthcare in South Dakota) the Republican Majority of the Legislature's Executive Board adopted two policies in its April 23rd Meeting that would become effective May 1, 2013.<ref name="Who's Paying for Republicans at ALEC Convention this Weekend?">[http://www.sddp.org/2013/05/whos-paying-for-republicans-at-alec-convention-this-weekend/ Who's Paying for Republicans at ALEC Convention this Weekend?], Press Release, ''South Dakota Democratic Party'', May 3, 2013.</ref>
First, the Executive Board voted to pay membership fees of $100 per Legislator for each of the 105 South Dakota Legislators to be members of [[American Legislative Exchange Council]], coming to a total of $10,500 of taxpayer money that would be used to fund membership to the corporate-cronyism organization.<ref name="State Should Not Pay Lawmakers' Dues to ALEC">[http://www.aberdeennews.com/opinion/aan-our-voice-state-should-not-pay-lawmakers-dues-to-alec-20130427,0,7553155.story?track=rss&utm_source=twitterfeed&utm_medium=twitter Our Voice: Sate Should Not Pay Lawmakers' Dues to ALEC], American News Editorial Board, ''Aberdeen News'', April 27, 2013.</ref> Next, the Executive Board expanded the eligible travel fund reimbursement options to include travel to out-of-state ALEC meetings and events. Some claim that this expansion of the travel policy was conveniently rushed to the floor to accommodate the 9 Republican legislators who attended the ALEC Spring Task Force meeting in Oklahoma City on May 3-4 (rather than waiting for the appropriate budget timing on July 1. ) <ref name="Spending Your Tax Dollars on Partisan ALEC Meetings">[http://madvilletimes.com/2013/05/online-petitions-protest-spending-your-tax-dollars-on-partisan-alec-meetings/ Spending your Tax Dollars on Partisan ALEC Meetings], South Dakota,''Madville Times'', May 14,2013.</ref>
These policies use taxpayer dollars to funnel money "up to corporate ladder" and into ALEC, where the ''exchange'' may as well mean "exchange your local grass-roots democracy for crony-capitalism" according to the Madville Times.<ref name="Spending Your Tax Dollars on Partisan ALEC Meetings"></ref> Two days after these policies were adopted, Democratic Legislators spoke out in local media against using taxpayer money for membership and travel associated with ALEC, posting petitions with over 160 South Dakota Residents opposing the policies. <ref>[http://madvilletimes.com/2013/05/citizens-protest-legislatures-use-of-tax-dollars-for-alec-dues/ Citizens Protest use of Tax Dollars for ALEC Dues ], South Dakota, ''Madville Times'', May 23, 2013.</ref> In addition, Moveon.org is circulating a petition that has gathered over 800 signatures in opposition to the policies. <ref>[http://petitions.moveon.org/sign/south-dakotans-oppose Moveon.org petition Opposing Support of ALEC with Taxpayer Money], accessed July 9, 2013.</ref>
In defense of the new policies, Republican legislators compare the ALEC to other nonpartisan legislative groups such as National Conference of State Legislatures (NCSL) and the Council of State Government (CSG). The fundamental difference between ALEC and these organizations, however, are that NCSL and CSG are organizations solely comprised of legislators and annually rotate leadership between Democrats and Republicans.<ref name="Legislators Not Asking for ALEC Membership Reimbursement">[http://www.capjournal.com/news/state-legislators-not-asking-for-alec-membership-reimbursement/article_e6450826-e536-11e2-92ef-001a4bcf887a.html State Legislators Not Asking for ALEC Membership Reimbursement], ''State Capitol Bureau'', July 5, 2013.</ref> In ALEC, committees are comprised of business leaders and legislators, and each committee is co-chaired by both a state representative and a CEO or lobbyist for a large corporate interest.
Ryan Maher (R-Isabel), the chairman of the South Dakota Legislature's Executive Board, determined that out-of-state travel would only be reimbursed for one organization (of the 3: NCSL, CSG, or ALEC), and directed the Legislative Research Council (LRC) to pay for memberships only if legislators provided a voucher for reimbursement.<ref name="Legislators Not Asking for ALEC Membership Reimbursement"></ref> Ironically, after the push for these new policies, not a single Legislator has submitted a voucher for reimbursement associated with ALEC membership, according to Jim Frye, the executive director of LRC.<ref name="Legislators Not Asking for ALEC Membership Reimbursement"></ref>
