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• In a message to lawmakers, the governor said the special session set for June 22 is no longer necessary to avoid the loss of a $23.6 million federal Veterans Administration grant for the project. He said the VA has extended the grant, giving the state time to review project plans and seek a scaled-back design.
• "Now that we have received additional time, I am ordering that the entire project be re-evaluated, redesigned and rebid. We owe it to the taxpayers to be certain that we are building a durable, quality and affordable facility," Daugaard wrote in his message to legislators.
• The South Dakota Legislature earlier this year approved a measure authorizing the spending of $41.3 million in state and federal money to build a new 100-bed home on the same Hot Springs property where the current facility is located in the southern Black Hills. When bids from contractors were opened recently, the lowest bid was considerably above projections, leading to a total project cost of $51.3 million.
• Daugaard announced May 22 that he would call the Legislature into a special session to approve up to $10 million in additional spending on the project. He had said that was necessary to avoid losing the $23.6 million federal grant.

• The Republican governor said Wednesday the VA has extended the grant so the state has until February next year, rather than this month, to finalize construction plans.
• Daugaard said he earlier did not believe the project's cost could be cut by $10 million and still build the facility that veterans need, but he said Wednesday he believes some cost savings are possible.
• "I am hopeful that design changes could lead to a total cost that we can all feel more comfortable with, although I would caution you that construction costs in the Black Hills seem to be higher than many regions of the country," the governor wrote.
• He said a new plan for the Veterans Home will presented to Legislature when it holds its regular 2014 session in January.
• Legislative leaders said they are confident the new facility will be built, but they are pleased the governor found a way to avoid a special session and take another look at the project.
• "I think it makes a lot of sense, now that the VA is going to give us some time, to redesign, rebid and reconsider the scope of the project," House Republican Leader David Lust of Rapid City said. "I think there's universal recognition that the facility needs to be upgraded in order to appropriately house our veterans."
• House Democratic Leader Bernie Hunhoff of Yankton said the governor's an

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