Press "Enter" to skip to content

Sanford to Spot Millions for State Workforce Initiative

So that's why Governor Dennis Daugaard didn't include a big workforce initiative in his budget proposal. He's going to do workforce development off budget with Sanford money:

Gov. Dennis Daugaard and T. Denny Sanford will announce a multi-million dollar partnership to address workforce development needs Wednesday in Sioux Falls.

The announcement will be held at Southeast Technical Institute but has statewide reach.

“South Dakota’s strong economy depends on a skilled workforce,” Daugaard said. “Denny Sanford is joining with the state to aggressively address this need.”

The partnership developed in recent months as First Premier CEO Dana Dykhouse and Premier Bankcard CEO Miles Beacom reached out to their founder and philanthropist Sanford to support workforce development [Jodi Schwan, "State, Sanford to Announce Millions for Workforce Development," that Sioux Falls paper, 2014.12.16].

Let's hope the Governor uses Sanford's money for something more productive than the first four years of Daugaardonomics. Let's hope that instead of throwing money away on ineffective recruiter subsidies, the Governor makes some real investments where they are needed most: creating jobs on the reservation, boosting education at all levels, and promoting higher wages for all workers.

Governor Daugaard will provide details tomorrow at 3 p.m.

38 Comments

  1. Owen reitzel 2014.12.16

    Good luck with that Cory

  2. CLCJM 2014.12.16

    Gotta agree with Owen. Good luck with that! The only thing DD is interested in is whatever will line his pockets and those of his big business cronies. Preferably with our money.

  3. rollin potter 2014.12.16

    hey Cory,you touched on the right area when you mentioned the areas of the reservations and education!!!!!
    Get those kids from high unemployment areas into the vo-tech schools where they can learn a trade!!!!!!

  4. Steve Sibson 2014.12.16

    Cory, this post is playing right into the hands of the crony capitalists. So the SDDP is going to regain strength by getting bought off? Look for names changes, such as Sanford Technical schools, and later Sanford Dakota as the new name for our state.

    It would certainly be unpopular to voice the premise that Sanford money is dirty money taken from the poor with usury, and that he should just keep it.

  5. Dana P 2014.12.16

    No Steve. Cory's post isn't playing into the hands of the crony capitalists. the big media splashes and the legislators grip and grins with Sanford are. But I do agree with you on one thing. This state does kiss the ring of Mr. Sanford and treat him like the second coming, at the same time they look the other way as his precious credit card company is nothing but "legalized" loan sharking. It is shameful, and that the state celebrates the methods of how Sanford obtained his wealth is a whole bunch of ewwww.

    I hope Cory is right that this has the possibility of being a good thing. However, with Gov D and Sanford teaming up on something, I feel that this will be nothing more than an experiment in low wages and more piling on of the poor. (yet they will brag about being "job creators") That is their modus operandi.

  6. Nick Nemec 2014.12.16

    I have to agree with Rollin and Cory on the education and reservation points. Industry should also step up with and pay for the education of young people. I'll bet many young people would be willing to sign contracts to work for a given employer for a certain number of years in exchange for education loan repayment. Starting life without a sword of debt hanging over you is a good feeling. Of course the industries will have to pay competitive wages or run the risk of losing those young debt free employees to other employers at the end of the contract period.

  7. Wayne B. 2014.12.16

    I would be very surprised if the announcement - at a technical school - wasn't healthcare workforce related. It was something brought up at the Sioux Falls workforce summit, and it fits in T. Denny's wheelhouse of giving.

    Steve, you may not like how Sanford made his money. We may disagree where he gives it and what strings he attaches to it, but it's his money to give as and how he sees fit. When you, Cory, or I make our hundreds of millions (guffaw), we can give it away as we see fit too.

    I guess we just like to criticize... it doesn't matter if someone keeps their money or gives it away - if you're in the 1% you're hated and despised because they figured out how to make more money than us. It's not like Sanford was born with a silver spoon in his mouth - far from it. He didn't force anyone to bank at First Premier, nor did he force people to sign up for a credit card. The interest rates and fees are all disclosed.

    The money made from fees is purely the fault of the card holder, not the issuer.

  8. JeniW 2014.12.16

    Thank you Wayne.

    There seems to be just as much hatred toward the rich as there is toward those who are poor and receive any type of assistance.

    I am willing to bet if Denny donated all of his money to any and everywhere except to SD, people would be up in arms complaining that he did not donate, or donate enough to a variety of organizations in SD.

  9. GoJacksJC 2014.12.16

    Wayne, I concede that you have a valid argument when you assert that much of the responsibility for individuals being subject to usurious interest rates lies with the debtor; however, we should not ignore the fact that some of those debtors are subject to circumstances which make them easy prey. For instance, low-income individuals are more likely to lack financial literacy.

  10. JeniW 2014.12.16

    GoJacksJC, that is why I advocate that those who seek a loan (or even credit cards) with very high interest rate have to wait 72 business hours, and receive financial counseling, and show proof of counseling before the high interest loans/credit cards can be approved.

  11. GoJacksJC 2014.12.16

    That is a novel solution Jeni, but who should pay for the counseling? Again, we are talking about a segment of society which often lacks disposable income and credit.

    Could one solution be to establish a fund comprised of penalties paid by card issuers, payday lenders, etc. which could recoup some of the counseling costs?

  12. JeniW 2014.12.16

    JoJacks that is an excellent idea!

    An organization in Sioux Falls that provides financial counseling is Lutheran Social Services.

    I think that the state of SD provides funding for counseling of women who seek to have an abortion. If the state is paying those agencies for counseling services, the state could also provide funding for agencies that provide financial counseling.

    Among the agencies that could be called upon to provide that type of service would include Volunteers of America, Independent Living Choices, programs for veterans. Some agencies have funding to provide financial counseling, so additional funding from the state may not even be needed.

  13. Wayne B. 2014.12.16

    GoJacks, I agree about the financial literacy. It's a challenge. So is the fact that when you're poor, it feels hard to save for anything, and any little crisis can upend everything.

    My major gripe is we don't do a good job teaching financial literacy, practical living and budgeting in school. We spent maybe a week (so 5 hours) doing a trial home budget. Home Economics didn't do a gorram thing on home budgeting... outrageous. We really don't prepare kids to be adults in K-12.

    My father was taught how to do his taxes in school, and somehow that got dropped from the curriculum. That's a shame.

    Okay, I've been reasonable long enough... time to toss a grenade :-)

    We like our sin taxes... Booze, Cigs, Gambling... if we're going to get our hands bloody, let's go all the way to the shoulders.

    If usury is so lucrative, maybe we kill two birds with one stone - set up the South Dakota payday loan company. 50% of revenue generated goes directly towards education, the other 50% to roads.

  14. GoJacksJC 2014.12.16

    Wayne, how about we model our approach on Kant's categorical imperative? Essentially, if the interest rates we intend to charge these low-income individuals are unpalatable to the Governor, the bank/payday loan executives, et al. were they, or their friends/family, debtors themselves, we cannot ethically justify making others subject to such rates.

  15. Wayne B. 2014.12.16

    In principle, I agree JC. I'm not a fan of payday loan centers. My friends who worked there felt horrible following the sales routine getting people to sign up for additional loans to pay off previous loans.

    But why should we tie the state's hands to a categorical imperative in this instance when we clearly use teleological methodologies for other revenue sources? To apply Kant's imperative, we should eschew sin taxes because it is wrong to profit off the sin of others. A state run gambling operation preys upon those with poor financial literacy.

    Troy has asserted there is an apparent demand for these kinds of loans in the market. We may not like it, but the fact those organizations are thriving is de facto evidence of the point. If the state simply said "we're going to be the go-to for high risk, high interest loans" and put all payday lenders out of business, at least the public would profit from the financial illiteracy of its populace. Besides, we end up paying as a community for their mistakes anyway...

    Let me be clear. I don't advocate the state do this. I do think it's a worthwhile foil to some of the other options being brandied about.

  16. Steve Sibson 2014.12.16

    Wayne & JeniW, thanks for confirming that the Democratic left also supports crony capitalism. But if Sanford wanted to be a saint, he would donate his millions back to those he ripped off and are currently living in the poor house, instead of using it to influence a fascist government and putting his name in glory.

  17. JeniW 2014.12.16

    Thank you for the laugh Steve S.

  18. tara volesky 2014.12.16

    I agree with Steve on that one. Well Steve, at least Avera will have some competition when Sanford builds in Mitchell and one-ups Avera. I am going to hit up Sanford into investing in the Recreation Center. And, why do the taxpayers need to pay for another fine arts center? Hit up Denny.

  19. Wayne B. 2014.12.16

    Point of clarification, Steve.

    I'm not a registered member of the SDDP. If posting here makes me a representative of the Democratic left, then you should welcome yourself to it as well.

    I don't think Sanford wants to be a saint, nor do I think there are many folks who think of him as such. I think he simply wants to create a legacy, and conveniently keep his ex wives from getting anything. Conveniently, he can buy himself a legacy. So what? You're putting a lot of moral agency on how he made his money. If T. Denny had made it selling teddy bears, would you kvetch?

    He made his millions from all of America. They're getting spent mostly in South Dakota. That's a heckuva boon for us. We're not talking conflict diamonds here... we're talking credit card interest fees. Heck, the real profiteering is in student loans and housing loans, backed by good ole' Uncle Sam.

  20. Douglas Wiken 2014.12.16

    I do not understand why some assume that hate is required to be suspicious of the motives of those who have grubbed a lot of money out of the hides of the unfortunate.

    The obvious point missing is that Daugaard could make $45 million or so more money move into healthcare if he weren't an ideological partisan knothead.

  21. Steve Sibson 2014.12.16

    Thanks Wayne for the clarification. So I can now say both sides of the political spectrum support crony capitalism. Sanford made his millions thanks to Janklow and South Dakotans operating by greed. And that legacy continues.

    Sad that on-the-top training costs are now being shifted onto the workforce before they get a job via student loans. So I agree, the profiteering continues because the free-market has been destroyed with these public/private partnerships, or what I label as fascism.

    Next comes Fleming claiming there has never been a free market and because the people of South Dakota are "happy" that they will have a job, we will qualify as an utopian society.

  22. Wayne B. 2014.12.16

    Sure can, Sibby... with your sample size of two... assuming I'm a card carrying member of the SDGOP. Since, you know, if I'm not blue I must obviously be red.

    It's funny, I haven't really thoughtfully explored how crony capitalism has helped South Dakota. Janklow made it easy for financial institutions to come here. South Dakotans get jobs. Not just a few, but Sioux Falls exploded compared to Sioux City.

    Now one of the rich moguls of those financial institutions is spending his vast wealth creating more health care jobs and scientific research jobs here in po-dunk South Dakota. Two of our largest health systems are directly competing, forcing both to provide better care, and competing for talented healthcare professionals.

    Sure, the NBP EB-5 endeavor was a huge flop and waste of money, but wow did Janklow ever do a bangup job of helping this state grow by a big heap. If crony capitalism did that, that's pretty impressive in my book.

    Doesn't mean I like it, mind you... but the reason I'm still in South Dakota is because of all that complicated crony capitalism. Without it, Sioux Falls would still be roughly 80,000 people.

    Well I'll be....

  23. Steve Sibson 2014.12.16

    " Without it, Sioux Falls would still be roughly 80,000 people."

    And South Dakota would be better for it. Imagine more people leaving on the land. Research shows rural folk are happier than urbanites. Sounds utopian, right Fleming?

    And just ask some Aberdeen folk about Janklow's easy money and the South Dakota Student Loan scandal.

  24. Steve Sibson 2014.12.16

    "leaving on the land", s/b living on the land

  25. JeniW 2014.12.16

    For everyone who hates Denny Sanford, how are you going to stop him from donating any more money?

    Denny donates to a wide variety of local organizations, if you stop him from making any more donations, how will you help make up the loss to those organizations?

  26. Bill Fleming 2014.12.16

    Sibby, I have never used the word "utopian" in any of my dialogue with you or anyone else here, and don't intend to. It's your term, your concept. You defend it.

  27. jerry 2014.12.16

    Somehow, with this news, I get the feeling that the payday loans are going to be safe from regulation in the State of South Dakota. Sorry Mr. Hickey, you just got tossed under the bus with your legislation.

  28. Owen 2014.12.16

    How about giving some of that money to the 4 year schools to recruit students to become teachers?

  29. JeniW 2014.12.16

    Owen, teachers are not a priority.

  30. Owen 2014.12.16

    I know JeniW. This is to help his business buddies.
    But I thought I'd throw it out there

  31. Roger Cornelius 2014.12.16

    Today tea party favorite, Putin, raised interest loan rates to 60% in response to President Obama's additional sanctions against Russia.
    How close are payday loan interest coming to Putin's?

  32. JeniW 2014.12.16

    People who are wealthy receive a ton of requests for funding everyday. Some of those requests are from legitimate organizations, some are bogus.

    To deal with all those requests they have a screening process. With Denny, he only considers requests that come through his connections, in this particular case it is Dana and Miles.

    First Premier may not need more employees, but they might, I do not know. Dana and/or Miles may have been interested in the Governor's attempt to increase the technical job workforce, did whatever they did, then approached Denny with the request.

    Because Denny trusts Dana and/or Miles, he made the decision to provide the funding.

    Denny's primary interests are in health and youth, although he does have interest in other causes. Many of the students who are attending the Voc. Tech. schools are young adults (or will be,) who are (or will be) fresh out of high school, so it is of interest to Denny.

  33. caheidelberger Post author | 2014.12.17

    Education should be of interest to all of us, JeniW. I am pleased to see any plan that lowers barriers to young people getting an education, not to mention starting their careers with less student debt. However...

    (1) This plan requires a $25M investment from the state. I hope we can find the money, but I'm dismayed to see that the Governor's focus remains on finding money to satisfy the corporate wing of his party, which here wants the public sector to provide their job training.

    (2) I wish the governor didn't need the crutch of private donations to fund public services. He who provides the gold makes the rules, and I'll want to see what rules Sanford tries to make for our vo-tech system.

    (3) Will this plan bring more students to enroll in and complete vo-tech? Will it get more of them to work in South Dakota? Will the scholarship be tied to working in SD for X years?

  34. JeniW 2014.12.17

    Having strings attached is a given, and I have no doubt that one of the strings will be to work in SD for at least a minimum number of years.

    I have no doubts that there will be restrictions on what area/programs will be eligible for the scholarships. For instance I do not think the child care program at Southeast Tech will be given much priority, but I could be wrong about that.

    What has me intrigued is that with Sanford and Avera in Sioux Falls, and spreading statewide, is that there are very few medical equipment manufacturing or medical supply distribution businesses. I am not talking about the medical supply stores where individuals can buy equipment, I am talking about hospital/clinic supplies. Both hospitals obtain the majority of their hospital supplies from out of state manufacturers and/or distributors. Will this plan be an incentive for a major medical supply manufacturer or distributor to come to SD, or a new development of a new supplier?

    Gov. Daugaard was able to solicit funding to open Mt. Rushmore during the government shut down. I am sure he will find ways to get private donors involved if the state does not hack up enough money to provide the matching fund.

    A thing to watch will be the impact on USD, SDSU, and the private community colleges such National American University.

  35. Jana 2014.12.17

    JeniW makes a great point wondering why with two very large and very successful healthcare systems that we haven't attracted more medical industry here.

    In other news, GOED will be going to Vegas again to try and attract some gun and bullets companies. How many years have we been doing this and how many companies have been brought to the state...and what has been the cost per job for that effort.

    Maybe as JeniW points out, there may be greener pastures for GOED to graze.

  36. CLCJM 2014.12.20

    Jana, so the state is going to Vegas to try to bring gun and ammo manufacturers to SD? I wonder how much they are doing for such businesses that are already in SD. My sister and her husband have had a small but growing ammo manufacturing enterprise for a few years near Hermosa. I know they've found that getting loans to expand their business were challenging. I think they tried the Small Business Administration but there were so may stipulations and requirements, they gave up and, I think got some kind of a bank loan. Does anybody know if the state is doing anything for existing businesses?

Comments are closed.