For the second time in less than a week, Democratic members in the state House of Representatives refused to support legislation that would have specially designated $5.4 million to cover a shortfall expected at the Homestake project.

The legislation, HB 1083, needed a two-thirds majority of 47 “yes” votes to pass. The bill died on a 45-23 vote split along party lines, two “yes” votes short of passage.

House Democratic leader Bernie Hunhoff of Yankton said the Democrats’ opposition to the legislation was a budget decision rather than a referendum on the project. He said there are numerous other ways available to pay for it.

Hunhoff said he wanted to “assure our friends in the Black Hills” that the project would be funded in some way eventually, perhaps through spending decisions that will be made as part of the 2011 budget legislation next month.

He cast the decision in the light of trying to balance state government’s budget.

Rep. Larry Tidemann, R-Brookings, agreed the money could be earmarked in the budget bill. He is chairman of the House Appropriations Committee.

Rep. Paul Dennert, D-Columbia, said the money could be taken from the state budget reserve rather than taking money from the other funds identified in the legislation.

Dennert said he won’t hold up the funding but he has other priorities to first consider as part of the state budget decisions.

“This is an extremely important project for the state of South Dakota,” Rep. Chuck Turbiville, R-Deadwood, said.

Rep. Quinten Burg, D-Wessington Springs, offered an amendment to take the $5.4 million from the Future Fund which is controlled by the governor and funded by a special tax on all employers. He said the fund currently has a balance of approximately $23 million.

Rep. Shantel Krebs, R-Renner, said there isn’t $5.4 million available in the fund. She said $14 million is already committed to businesses considering whether to locate in South Dakota. She said another $8 million is committed in signed agreements. She said there is just $700,000 available.

House members voted 45-24 against the Burg amendment, splitting along party lines too, with Republicans opposing it.

“Well here we are. We heard no opposition to the merits of the project and what it can do for South Dakota,” Rep. David Lust, R-Rapid City, said.

Lust said it would be tragic to see the project lost over a “trivial” skirmish about the sources of funding.

The legislation would have redirected $1.5 million from the state aeronautics fund, $1 million from the state tax relief fund which receives voluntary payments of sales taxes from Internet businesses, $2 million from the state petroleum release compensation fund,  $400,000 from a private activity bond fees fund and $500,000 from the telecommunications services for the deaf fund.

The proposal came from Gov. Mike Rounds, who has described it as temporary funding that will serve as a bridge until federal funding is received.