Economic Growth the South Dakota Way
By: Governor Kristi Noem
October 21, 2022
It’s no secret that costs are rising in just about every aspect of our daily lives. We’ve talked quite a bit about the skyrocketing cost of food and gas, and our businesses are facing these challenges, too. Rising costs can create a lack of predictability about the future. Thankfully, over the past few years, South Dakota has built an economic climate that shores up that predictability by creating steady growth.
Businesses are starting in South Dakota at a faster rate than any state in America, and the businesses that have been here for years are flourishing. That’s a testament to the predictability and sustainability of our low tax environment, which enables businesses to feel comfortable making long-term investments in our state. And families are making the same choice for the long term, moving to South Dakota at such a rate that we are the no. 2 state in the country for inbound migration. This, in turn, will continue to give our old and new businesses the workforce needed to shore up their long-term growth.
When outside organizations evaluate how well a state is governed, they look at a number of factors. Primarily, they ask how a state manages in a competitive business climate. The American Legislative Exchange Council ranked me the no. 1 Governor in America because of our state’s “fiscal and executive policies,” meaning that they believe we have created a climate where businesses can succeed. And this ranking is validated by the fact that we are setting the pace for new business applications, leading the country in income growth for our people, and setting the bar for new housing development.
Those fiscal and executive policies are simple: we live within our means; we balance our budget; we save money wherever we can, spending $43 million less than budgeted this past fiscal year; we pay down debt; we protect our AAA credit rating; we have the most well-funded pension system in the nation; and we invest in long-term growth, like connecting every corner of the state to high-speed broadband and developing our cyberresearch industry. These policies have inspired long-term capital investments in our South Dakota communities, helping us to build the strongest economy in the nation.
And we’re just getting started. I will include in my next budget the largest tax cut in South Dakota’s history – and it will be my top priority for the next legislative session. South Dakota already has some of the lowest taxes in America. We have no individual or corporate income tax, nor do we have a statewide personal property tax. This past legislative session, I eliminated additional taxes, as well.
We want to tax less in South Dakota, not more – to cut taxes, not add to them – to give people more control over their money, not less.
South Dakota will continue to build on these policies to guarantee predictable, steady growth for our future. We will guarantee that there are jobs available for our kids and grandkids. In doing so, we will continue to grow the incomes of our people and battle back against the rising inflation being driven by liberal policies in Washington, D.C.
And we will accomplish these goals by continuing to trust in the Freedom of our people.