While governments in other states were busy crushing their economies over the past year, South Dakota never closed. I was the only governor not to order a single business or church to shut its doors. As a result, we were afforded unique opportunities to set our state up for long-term growth.
South Dakota avoided small business devastation, extended school closures, and suffering communities. We respected that South Dakotans did not need the heavy hand of government to tell them how to protect themselves. We trusted the people. And now, our state economy is the fastest-growing, with the lowest unemployment rate in the country.
As a result, we made fiscally conservative investments in our state’s future. The truth is, South Dakota has long been a model of fiscal responsibility. We have no corporate or individual income tax and no statewide personal property tax. Our sales tax is flat and broad. We’ve long had a AAA credit rating. We balance our budget, and our fiscal reserves are strong.
Rather than abandoning this approach during the COVID-19 crisis, we leaned into it. Because we kept our economy open, it remained strong. In fact, our state revenues are 11.2% above where they were at this time last year. We didn’t need to raise taxes or take on new debt like we’re seeing happen elsewhere.
As other states lobbied for a federal bailout and even explored bankruptcy during the pandemic, I realized that South Dakota’s strong financial footing gave us a unique opportunity to invest in our future. So we set aside more money for a rainy day. We invested in trust funds, which will create recurring revenue for the state. We grew our state reserve funds to 11.9% of our annual budget. We even paid down debt at our technical colleges. This fiscal responsibility will allow our state to prepare for future economic downturns caused by President Joe Biden’s reckless tax-and-spend policies.
We made targeted infrastructure investments that will boost economic growth for years to come. We fully funded our efforts to build out broadband access statewide. This will ensure that people in every corner of South Dakota have the opportunity to work where they choose to live and guarantee that their children have the tools that they need for their education.
We started our first ever need-based scholarship by putting $50 million into the South Dakota Freedom Scholarship fund, which will help South Dakota students who just need a chance to succeed. We’re building a new “Dakota Events CompleX” to make South Dakota a national destination for rodeo and livestock events. And we aided the construction of the Liberty Center at Ellsworth Air Force Base to support our troops and the surrounding community.
These investments in the future of South Dakota will boost the economy now while fixing some long-term challenges for decades into the future.
In response to the pandemic, we expanded patient control in healthcare. Obamacare had made healthcare inflexible and expensive for many, so South Dakota took a different path. We now recognize the out-of-state healthcare licenses of those moving into the state. This will expand our healthcare workforce and give patients more options. We guaranteed transparency in health insurance costs and expanded flexibility with telehealth resources, which will especially help South Dakotans in the most rural parts of our state.
We did not suspend the traditional work of government during this crisis. I was proud to sign important conservative priorities into law. We protected life, especially pre-born babies diagnosed with Down syndrome, and we passed protections for born-alive babies after failed abortions. I was also honored to sign into law home-school reform that empowers parents, religious freedom protections, and stand-your-ground legislation.
Other states should learn from the example that South Dakota is setting. The fight for conservative governance is even more important during a time of crisis. We cannot lose our principles or support reckless policies any time things get difficult. If leaders overstep their authority in a time of crisis, that is when we risk breaking the foundations of this country.
Other states should take a hard look at South Dakota. We respected the God-given rights of citizens to be free to pray and earn a living while protecting the health and safety of our citizens. And as a result, the state and the people living here have experienced, and will continue to experience, long-term economic success.
Kristi Noem, a Republican, is the 33rd governor of South Dakota and its first female governor.
