House Bill 1044 looks like a lot of style and form changes related to certifying and disciplining K-12 teachers and administrators. The Secretary of Education gets explicit authorization to initiate certificate violations (what? Dr. Schopp doesn't have that already?). The bill clarifies the Secretary's authority to refuse to issue or renew education certificates as well as suspend or revoke. Most of the provisions seem reasonable and minor.

But I notice three provisions that appear to subject educators to a greater threat of losing their license to teach or administer in South Dakota. (The bill applies equally to teachers, principals, and superintendents; as a teacher, I'll focus on teachers.)

Section 10 changes who can start a proceeding to take away a teacher's license. Remember, we're not just talking about getting a teacher fired—that's handled at the local level, by the school board. We're talking about yanking a teaching certificate, a teacher's permission slip to seek employment anywhere in the state. Right now, SDCL 13-42-12 says that "The school board or governing body employing a teacher or administrator, the professional teachers practices and standards commission, professional administrators practices and standards commission, or the secretary of the Department of Education" can start the process to revoke a teacher's certificate. HB 1044 strikes that language and authorizes "any person" to call for a certificate revocation hearing.

In my teaching career, I believe I've had a hot parent or two say they were going to take my license away. None ever have, because parents can't do that. South Dakota has a nice local protocol where, if you have a beef with a teacher, you first talk to the teacher. If that conversation doesn't satisfy your concerns, you take it to the principal, then the superintendent, then the school board. That's four levels of your friends and neighbors who, if something really is wrong with the teacher, ought to be able to take some action. If your local school board does fire the teacher from your district, it's up to the school board to decide whether to ask Pierre to kick the teacher out of the profession.

The current system allows local districts to filter complaints. HB 1044 lets angry parents skip the local level completely and take their complaint straight to Pierre. HB 1044 comes at the request of the Department of Education, so I guess Secretary Schopp really must want to deal with a constant stream of headhunting parents. Have fun with that, Melody!

Current statute (SDCL 13-42-13) gives the teacher under fire the ability to demand that the hearing take place in the county seat of the county where the alleged violations that draw the complaint took place. HB 1044 repeals that statute and leaves the choice to move the hearing from Pierre with the Department of Education. That increases the possibility that 90% of South Dakota teachers would have to drive at least three hours to defend their certificate. The same drive time would apply to complainants, although (and I can speak from experience) angry parents who want to make a teacher's life hell often are more motivated (and, dare I suggest, given South Dakota's wages, more wealthy?) than the teacher who just wants to keep her head down and do her job. HB 1044 reduces the ability of challenged teachers to at least keep the costs of their litigation down.

HB 1044 then throws another brick at teachers. As if asking, "Are you sure you want to fight this?" the bill offers Section 17:

After conducting a contested case proceeding that results in the denial, nonrenewal, revocation, or suspension of a certificate, the department or commission may assess all or part of its actual costs for the proceeding against the certificate holder or applicant.

Make due process potentially more expensive, and fewer people will seek due process. A teacher facing a certificate revocation has probably already been fired. If she wants to stay in teaching, she'll have to spend every job interview for the rest of her life explaining why she got fired and why that firing shouldn't stop the next school from hiring her. Even if she's a really good teacher and the firing wasn't just, far more employers will decline to give her a chance to prove her abilities, thus reducing her lifelong earning opportunities. Suspending or revoking her teaching certificate only worsens her professional and financial outlook. Doesn't that process already impose enough costs on the teacher without tacking on another bill at the end that says due process isn't really your due.

I also notice that Section 17 is not complemented with a section that requires complainants to pay the cost of the proceeding if their complaint does not prevail. HB 1044 thus goes after jerk teachers who deserve to be kicked out of the profession, but it does not go after vindictive community members who would drag a teacher through an arduous certificate hearing for no good reason.

House Bill 1044 looks like a further weakening of South Dakota educators' ability to defend themselves from local politics and unfair challenges to their professional livelihood. HB 1044 promotes the false impression that there's something wrong with our teachers. South Dakota teachers really aren't paid enough to put up with this kind of grief.


Governor Dennis Daugaard's new Build Dakota Scholarship for vocational-school students is a corporate welfare program whose primary aim is addressing a workforce shortage and providing select South Dakota industries with a captive labor pool. It will provide 300 scholarships over five years out of a total current vo-tech enrollment of about 6,100.

Democrats in Minnesota's Legislature are proposing free tuition for everyone who wants to attend Minnesota's two-year colleges and technical schools. That proposal mirrors the Tennessee Promise, in which Tennessee is using lottery money to cover tuition to its associate-degree programs:

It will provide students a last-dollar scholarship, meaning the scholarship will cover tuition and fees not covered by the Pell grant, the HOPE scholarship, or TSAA funds. Students may use the scholarship at any of the state’s 13 community colleges, 27 colleges of applied technology, or other eligible institution offering an associate’s degree program. While removing the financial burden is key, a critical component of Tennessee Promise is the individual guidance each participant will receive from a mentor who will assist the student as he or she navigates the college admissions process. In addition, Tennessee Promise participants must complete eight hours of community service per term enrolled, as well as maintain satisfactory academic progress (2.0 GPA) at their institution [Tennessee Promise, "About," downloaded 2015.01.09].

Instead of tying graduates to in-state employers and introducing grit in the labor market, Tennessee will ask its scholarship recipients to pay their communities back while they are in school with a simple service requirement.

President Obama likes the Tennessee Promise. He's advocating a national version of the plan, which could serve nine million Americans.

Minnesota Republicans' initial response: class warfare!

Senate Minority Leader David Hann, R-Eden Prairie, was similarly critical of the Democrats’ proposal for free tuition.

“At this point, we have a lot of questions,” Hann said. In particular, he said the programs lack a means-testing mechanism to ensure they are not abused by higher-income Minnesotans [Richard Lopez and J. Patrick Coolican, "Free College vs. Tax Cuts as Visions Contrast at Capitol," Minneapolis Star Tribune, 2015.01.08].

Republicans are hilarious: hand out general scholarships, and the rich are untrustworthy, abuse-minded miscreants! Hand out tax breaks, and the higher-income citizens who run businesses can be trusted to pass on great benefits to the trickled-upon masses (tax breaks are a highlight of the MN GOP plan for the state surplus).

And South Dakota Republicans bat not one eyelash at the possibility that higher-income South Dakotans might take advantage of vo-tech scholarship recipients who are required to work in South Dakota for three years by paying them lower wages than market forces would otherwise demand.


The obvious solution to South Dakota's vo-tech workforce shortage is higher wages. But if our business and political leaders are committed to ignoring that option, perhaps we can consider another solution: immigrants.

The Pew Charitable Trusts just issued a report on "Changing Patterns in U.S. Immigration and Population." It includes this map of counties where the population of U.S.-born residents has declined over the last couple decades:

Native-Born Population Declines in Middle America, 1990-2012. Source: Pew Charitable Trusts, "Changing Patterns in U.S. Immigration and Population," 2014.12.18

(click to embiggen!)

See that big blue band down the middle of the country? Those are counties where there are fewer natives born Americans. More of East River is emptying out than West River.

A lot of counties in that band of demographic blues are countering that population loss with immigrants:

"Immigration Slows Population Declines in Middle America"—Source: Pew Charitable Trusts, "Changing Patterns in U.S. Immigration and Population," 2014.12.18

(click to embiggen!)

The dark green counties saw foreign immigration growth outpace the native population loss. The lighter green counties saw foreign immigration slow their shrinkage. Notice that green starts to peter out around the Dakotas.

South Dakotans, like all Americans, are getting older and having fewer babies. The Pew report says immigration is key to filling the workforce:

In addition to having the potential to offset population decline in some areas of the country, immigrants can also compensate for the aging of the native-born population. The median age of the total U.S. population is rising, and the ratio of seniors (ages 65+) to working age people (ages 25-64) is increasing. Immigration mitigates these trends by adding working age adults to the U.S. population. Nearly half of immigrants admitted between 2003 and 2012 were between the ages of 20 and 40, while only 5 percent were ages 65 or older.

The size and makeup of the U.S. population has important implications for economic productivity, taxation, and spending. Immigrants are already disproportionately represented in the labor force with a share of about 16 percent, while they make up about 13 percent of the overall population. The Pew Research Center has determined that if current immigration trends and birth rates continue, by 2050 virtually all (93 percent) of the nation’s working age population growth will come from immigrants and their U.S.-born children [Pew Charitable Trusts, "Changing Patterns in U.S. Immigration and Population: Immigrants Slow Population Decline in Many Counties," December 2014].

South Dakota has shown its willingness to use immigration as an economic development tool in the past. The state appears to recognize at least part of the immigration–economics equation in its new Build Dakota vo-tech scholarship program:

But with high school graduation classes declining, South Dakota also must lure more people here from other states. Build Dakota understands that, its designers say. Out-of-staters entering one of South Dakota’s four technical schools will be able to apply for full scholarships, too, as long as they commit to working at least three years in the state after they graduate [Steve Young, "Build Dakota Offers Promise for Workforce Growth," that Sioux Falls paper, 2014.12.19].

But notice the limits there: we're thinking about students from other states, not workers from other countries. We're targeting youth who will in a couple years turn into technicians who will work for three years with entry-level skills at entry-level wages. Where's the component of our economic development plan that targets experienced workers, foreign and domestic, who could come to South Dakota and add value right now with better skills and bigger families?

Our workforce shortage is not magic. South Dakota has more retirees, fewer workers, and fewer kids stepping in to replace them. Our workforce recruitment efforts need to do more to ride the immigration wave that is boosting other parts of Middle America.


The Build Dakota Scholarship program created by Governor Dennis Daugaard and billionaire T. Denny Sanford promises 300 vo-tech students a year a free two-year education in return for three years of work in South Dakota.

KELO says vo-tech programs in South Dakota run between $12,000 and $15,000. The top end of that range puts the up-front dollar value of the Build Dakota scholarship on par with the Critical Teaching Needs Scholarship, created in 2013, which pays the last two years of tuition and fees for willing teacher candidates. However, the vo-tech students are getting a better deal: the teachers must promise to work in South Dakota for five years.

As we know, students accepting the Critical Needs Teaching Scholarship are trading $15K in tuition costs for $65K in sacrificed purchasing power available for working outside of South Dakota. Will Build Dakota Scholarship takers come out any better financially?

That math is uncertain: Governor Dennis Daugaard has not announced yet which job fields he will target with the new scholarship, so we don't know which wage data to compare. But let's take some guesses.

We'll focus on wages in South Dakota and the six adjoining states. Let's look first at median wages, the halfway point for wages in various fields. Here are the median wages for all occupations:

All Occupations
State Annual Median Salary Per-capita state taxation Salary in pocket after state tax Cost of living (2014 Q3) Adjusted post-tax salary power Additional purchasing power from working here instead of SD
IA $32,380 $3,740 $28,640 92.8 $30,862 $4,884
MN $37,390 $4,858 $32,532 101.2 $32,146 $6,168
MT $30,770 $3,137 $27,633 102.1 $27,065 $1,086
ND $35,640 $4,057 $31,583 101.7 $31,055 $5,077
NE $31,840 $3,991 $27,849 97.7 $28,505 $2,526
SD $29,420 $3,052 $26,368 101.5 $25,978 $0
WY $36,990 $3,500 $33,490 94.4 $35,477 $9,498

South Dakota has the lowest median wage in the region. We have the lowest state and local tax burden, but our cost of living (by the most recent available data, 2014 Q3) is higher than the national average and even three ticks higher than Minnesota's. Our median adjusted post-tax purchasing power is four digits less than our neighbors'—4% less than Montana's, 24% less than Minnesota's, and 37% less than Wyoming's.

But hold on: that's all jobs, from bailiff and dishwasher up to nurse anaesthetist and CEO. Our vo-tech grads are aiming for a specific subset of jobs.

Let's look at the general category BLS calls "Production Occupations," where we should find a higher proportion of vo-tech grads:

Production Occupations
State Annual Median Salary Per-capita state taxation Salary in pocket after state tax Cost of living (2014 Q3) Adjusted post-tax salary power Additional purchasing power from working here instead of SD
IA $31,550 $3,740 $27,810 92.8 $29,968 $4,186
MN $33,730 $4,858 $28,872 101.2 $28,530 $2,748
MT $30,970 $3,137 $27,833 102.1 $27,261 $1,479
ND $33,830 $4,057 $29,773 101.7 $29,275 $3,494
NE $30,230 $3,991 $26,239 97.7 $26,857 $1,075
SD $29,220 $3,052 $26,168 101.5 $25,781 $0
WY $44,270 $3,500 $40,770 94.4 $43,189 $17,407

Oops! Median pay is actually a little worse in this field, except in Wyoming, where median pay and post-tax adjusted purchasing power jumps to a $17K advantage over South Dakota'

Let's get specific. Within "Production Occupations," our governor talks a lot about welders:

Welders, Cutters, Solderers, and Brazers
State Annual Median Salary Per-capita state taxation Salary in pocket after state tax Cost of living (2014 Q3) Adjusted post-tax salary power Additional purchasing power from working here instead of SD
IA $34,570 $3,740 $30,830 92.8 $33,222 $4,820
MN $38,760 $4,858 $33,902 101.2 $33,500 $5,098
MT $33,750 $3,137 $30,613 102.1 $29,983 $1,581
ND $43,010 $4,057 $38,953 101.7 $38,302 $9,900
NE $34,340 $3,991 $30,349 97.7 $31,063 $2,661
SD $31,880 $3,052 $28,828 101.5 $28,402 $0
WY $46,120 $3,500 $42,620 94.4 $45,148 $16,746
Welding, Soldering, and Brazing Machine Setters, Operators, and Tenders
State Annual Median Salary Per-capita state taxation Salary in pocket after state tax Cost of living (2014 Q3) Adjusted post-tax salary power Additional purchasing power from working here instead of SD
IA $36,890 $3,740 $33,150 92.8 $35,722 $4,729
MN $36,000 $4,858 $31,142 101.2 $30,773 -$220
MT $36,140 $3,137 $33,003 102.1 $32,324 $1,331
ND $37,760 $4,057 $33,703 101.7 $33,140 $2,147
NE $37,960 $3,991 $33,969 97.7 $34,769 $3,776
SD $34,510 $3,052 $31,458 101.5 $30,993 $0
WY $50,360 $3,500 $46,860 94.4 $49,640 $18,647

In these two job areas, the only place South Dakota beats on post-tax purchasing power is Minnesota, for welding, soldering, and brazing machine setters, operators, and tenders, and there our advantage is just $220, about 0.7%, or the cost of gas and a motel room to go see the Vikings play. Welders, cutters, solderers, and brazers come out over $5K better a year in Minnesota than in South Dakota.

But hold on again: these figures are median figures, the 50th-percential salary. Half the welders make more, half make less. We're trying to calculate the outlook for fresh-faced vo-tech grads. Welders probably need to work a while before they can prove they deserve more pay than half of their colleagues. We should thus look at salaries in the lower end of each field.

The Bureau of Labor Statistics has data on the certain percentile salaries in each occupation and each state (and you think your daily math is hard?). So let's try this: assume a new vo-tech grad jumps into a new job and, for a starting wage, gets the 10th-percentile salary (10% of workers make less, 90% make more). This kid's from South Dakota, and she would have qualified for a Build Dakota free-ride, so she's smart and good at her job. Second year, the boss raises her pay to the 25th-percentile. Third year, she gets another raise, to the median salary. On that pay trajectory, how do things look for our prospective welders?

Welders, Cutters, Solderers, and Brazers
State Annual 10th-percentile salary Annual 25th-percentile salary Annual 50th-percentile (median) salary Sum
IA $25,670 $29,460 $34,570 $89,700
MN $26,970 $32,410 $38,760 $98,140
MT $23,350 $27,510 $33,750 $84,610
ND $30,820 $35,240 $43,010 $109,070
NE $25,110 $28,870 $34,340 $88,320
SD $25,290 $27,750 $31,880 $84,920
WY $30,720 $37,530 $46,120 $114,370
Welding, Soldering, and Brazing Machine Setters, Operators, and Tenders
State Annual 10th-percentile salary Annual 25th-percentile salary Annual 50th-percentile (median) salary Sum
IA $27,400 $32,370 $36,890 $96,660
MN $25,290 $29,260 $36,000 $90,550
MT $24,790 $31,460 $36,140 $92,390
ND $26,830 $31,910 $37,760 $96,500
NE $24,050 $31,280 $37,960 $93,290
SD $27,220 $31,240 $34,510 $92,970
WY $33,990 $41,400 $50,360 $125,750

With that fourth column, adding a year at the 10th percentile, a year at the 25th, and a year at the 50th (the median), we're getting closer to the real picture our vo-tech prospects face as they try to figure out whether taking the Build Dakota Scholarship is worth committing to work in South Dakota for three years. Let's plug those three-year income sums into our spreadsheet, subtract three years' tax burden, factor in cost of living, and see what happens:

Welders, Cutters, Solderers, and Brazers
State 3-yr income 10th-25th-50th 3-yr state/local tax burden Salary in pocket after state tax Cost of living (2014 Q3) Adjusted post-tax salary power Additional purchasing power from working here instead of SD
IA $89,700 $11,220 $78,480 92.8 $84,569 $9,925
MN $98,140 $14,574 $83,566 101.2 $82,575 $7,931
MT $84,610 $9,411 $75,199 102.1 $73,652 -$992
ND $109,070 $12,171 $96,899 101.7 $95,279 $20,635
NE $88,320 $11,973 $76,347 97.7 $78,144 $3,500
SD $84,920 $9,156 $75,764 101.5 $74,644 $0
WY $114,370 $10,500 $103,870 94.4 $110,032 $35,387
Welding, Soldering, and Brazing Machine Setters, Operators, and Tenders
State 3-yr income 10th-25th-50th 3-yr state/local tax burden Salary in pocket after state tax Cost of living (2014 Q3) Adjusted post-tax salary power Additional purchasing power from working here instead of SD
IA $96,660 $11,220 $85,440 92.8 $92,069 $9,494
MN $90,550 $14,574 $75,976 101.2 $75,075 -$7,500
MT $92,390 $9,411 $82,979 102.1 $81,272 -$1,303
ND $96,500 $12,171 $84,329 101.7 $82,919 $344
NE $93,290 $11,973 $81,317 97.7 $83,231 $656
SD $92,970 $9,156 $83,814 101.5 $82,575 $0
WY $125,750 $10,500 $115,250 94.4 $122,087 $39,511

Clearly, Wyoming beats us all for welding wages. A welder who stays in South Dakota instead of moving to Wyoming gives up over $35,000 in purchasing power over three years. A welding machine operator making the same choice gives up over $39,000. Choose South Dakota over Minnesota, and the welder loses over $7,900, but the welding machine operator gains $7,500.

But where the rubber hits the road—or where the vo-tech student doesn't!—is the scholarship question. Denny D. and Denny S. are offering you sharp welders (come on, after all this talk, you're going to include welders in the scholarship, right, guys?) $15,000 in tuition savings. If those welders don't take the scholarship because they want to work out of state, they have to earn back the $15,000 they spent on school.

Only the Wyoming and North Dakota welders and the Wyoming welding machine operators make more than $15,000 above the typical wages in South Dakota. The Build Dakota Scholarship will be worth it for a lot of welding candidates.

Let's try another job field. Our benefactor Mr. Sanford is all about health care, so let's assume we'll promote some health tech jobs. How will radiologic technologists do?

Radiologic Technologists
State 3-yr income 10th-25th-50th 3-yr state/local tax burden Salary in pocket after state tax Cost of living (2014 Q3) Adjusted post-tax salary power Additional purchasing power from working here instead of SD
IA $116,610 $11,220 $105,390 92.8 $113,567 $14,184
MN $143,620 $14,574 $129,046 101.2 $127,516 $28,133
MT $121,360 $9,411 $111,949 102.1 $109,646 $10,263
ND $112,720 $12,171 $100,549 101.7 $98,868 -$515
NE $118,630 $11,973 $106,657 97.7 $109,168 $9,785
SD $110,030 $9,156 $100,874 101.5 $99,383 $0
WY $132,090 $10,500 $121,590 94.4 $128,803 $29,420

Again, assuming a $15,000 scholarship value, the potential Build Dakota Scholarship recipient thinking about leaving South Dakota to work in radiology for Montana, North Dakota, or Nebraska will want to think again. Future radiologists eying Minnesota or Wyoming will tell Dennis, "No deal!" Radiological aspirants looking at Iowa will have a tougher choice: for them, Build South Dakota and three years locked into South Dakota offers them less than a thousand-dollar net advantage.

How about bus and truck mechanics and diesel engine specialists?

Bus and Truck Mechanics and Diesel Engine Specialists
State 3-yr income 10th-25th-50th 3-yr state/local tax burden Salary in pocket after state tax Cost of living (2014 Q3) Adjusted post-tax salary power Additional purchasing power from working here instead of SD
IA $87,200 $11,220 $75,980 92.8 $81,875 -$5,311
MN $106,830 $14,574 $92,256 101.2 $91,162 $3,976
MT $90,440 $9,411 $81,029 102.1 $79,362 -$7,824
ND $110,530 $12,171 $98,359 101.7 $96,715 $9,529
NE $83,210 $11,973 $71,237 97.7 $72,914 -$14,272
SD $97,650 $9,156 $88,494 101.5 $87,186 $0
WY $120,030 $10,500 $109,530 94.4 $116,028 $28,841

Even without Build Dakota, if you're into diesel engines, you lose money leaving South Dakota for Iowa, Montana, or Nebraska. The four-figure puchasing-power gains promised by Minnesota and North Dakota don't beat the $15,000 value of our new vo-tech scholarship. But once again, Wyoming is the land of opportunity. Skip the scholarship, head for Sheridan, and in three years, you'll have earned back your tuition and cleared another nearly $14,000 over what you would have made back in Aberdeen.

I'd compare wind turbine service technicians, but South Dakota apparently doesn't have enough jobs in that field for BLS to count. (Hmm.... Governor Daugaard, you and the PUC could do something about that, couldn't you?) Job opportunities in that field are numerous enough to count in Wyoming, Iowa, Minnesota, and North Dakota, where the median annual salary for fixing wind turbines is $55,550.

Whatever the exact numbers above, the Build Dakota Scholarship makes working in South Dakota for the first three years of one's technical career more appealing. Possible future earnings in welding or radiology or diesel mechanicry in another state don't matter to the young person who can't get those jobs because she doesn't have the cash right now to go to vo-tech. Plus, with their "stay in South Dakota" requirements, our scholarship plans "get our hooks" into young workers early: in those first three years, they'll accumulate connections and obligations that will incline some fraction of them to stay, despite the greater earning potential available in many fields in most other states.

And therein lies the sneaky and arguably irresponsible part of these scholarship plans. The state is not investing in a long-term plan to raise wages (which would raise economic activity, which would raise tax revenues, which would raise the amount and quality of public goods...). The state is using its resources and Denny Sanford's resources to rope young people into working for less competitive wages. The state and Sanford are going to great lengths (and putting up real money is the greatest length our state government can go to) to keep their business pals from solving their own workforce shortages with the obvious free-market solution of offering bigger paychecks.

Vo-tech students, do your own math for your own field, and tell us whether the Build Dakota Scholarship will sway your decision to stay and work in South Dakota. Fellow South Dakotans, let's ask ourselves whether we do more to address a workforce shortage by lowering workers' entry costs or raising workers' ongoing wages.

Main data sources:

  1. Cost of living: 2014 Q3 C2ER data from MERIC:
  2. State + local tax burden: SD GOED:
  3. Wages: Bureau of Labor Statistics State Occupational Employment and Wage Estimates, May 2013:

Final Thought: The state has an obligation to educate citizens. Business has an obligation to train workers. Would Adam Smith agree?

Update 2014.12.23 16:07 CST: Rasmussen College, a for-profit business school based in Minnesota, mashes average salaries and cost of living together to produce this fun interactive bar chart comparing adjusted purchasing power for BLS job categories in all 50 states. Whatever you do, don't take up welding in New York or California!


Arizona/South Dakota billionaire T. Denny Sanford is using $25 million of his usury-gotten fortune to keep South Dakota state government from coming up with more of its own money to address workforce development. How very nice.

I suppose it's impolite to pester an elderly benefactor about the literal content of statements made in a fit of boosterism. But permit me to look at a few words from the gift horse's mouth, uttered yesterday at the rollout of the new Build Dakota vo-tech scholarship plan:

"I'm proud of everything that South Dakota stands for," Sanford said. "Productivity, a great health system and South Dakota Works. And it works in a good way. Not only do people work harder and have a better work ethic, but the system works. We've got a system unequal to anything else I've seen. We've got to get the people here to do it."

..."Go forward, South Dakota; let's get it done," Sanford said. "I know you will because everything we do here works" [Jodi Schwan, "Sanford, State Pledge $50 Million for Workforce Needs," that Sioux Falls paper, 2014.12.17].

Everything we do here works... that statement makes it hard to explain why we need this scholarship program in the first place. What happened to the New South Dakotans program that was Governor Daugaard's first big swing at workforce recruitment? Oh yeah: it didn't work. And if everything we have here works, why do we have a teacher shortage? And a road-repair shortage?

But we South Dakotans still work harder than everyone else, right? We have a better work ethic, right?

  1. A Bureau of Labor Statistics report from 2010 says that in 2008, South Dakota ranked 47th for average weekly hours and 51st for average hourly earnings in private industry.
  2. From 1977 to 2000, 25 states had higher annual labor-productivity growth than South Dakota. Our labor-productivity growth improved from 2000 to 2004, thanks to our riding out the 2001 recession a little better than the rest of the country, but 13 states still beat us on that metric in that period.
  3. This is a crude figure, but if you divide our gross state product by our population in 2013, you find that South Dakota ranks 22nd for economic output per person (see full chart below). However hard they are working, folks in 21 other states are generating more wealth per person than South Dakotans. The only neighboring state producing less wealth per person is Montana, which ranks 42nd in GSP per capita.
  4. Working harder isn't exactly a sign of progress. How hard do you think Mr. Sanford is working right now? American workers put in more hours than their European counterparts but report less life satisfaction.

I suppose the state's official position should be that Denny Sanford can say the sky is blue and Elvis is President, as long as he keeps the money coming. Denny Sanford can build our hospitals and schools and workforce... but let's not let him fabricate our facts.

State 2013 GSP $ Millions Population (2013) GSP/pop GSP/pop rank
Alabama 180,727 4,833,722 $37,388.79 47
Alaska 51,542 735,132 $70,112.58 2
Arizona 261,924 6,626,624 $39,526.01 41
Arkansas 115,745 2,959,373 $39,111.33 43
California 2,050,693 38,332,521 $53,497.47 13
Colorado 273,721 5,268,367 $51,955.57 18
Connecticut 233,996 3,596,080 $65,069.74 5
Delaware 58,028 925,749 $62,682.22 7
District of Columbia 105,465 646,449 $163,145.12 1
Florida 750,511 19,552,860 $38,383.69 46
Georgia 424,606 9,992,167 $42,493.89 37
Hawaii 70,110 1,404,054 $49,933.98 20
Idaho 57,029 1,612,136 $35,374.81 50
Illinois 671,407 12,882,135 $52,119.23 17
Indiana 294,212 6,570,902 $44,774.98 31
Iowa 150,512 3,090,416 $48,702.83 21
Kansas 132,153 2,893,957 $45,665.16 28
Kentucky 170,667 4,395,295 $38,829.48 44
Louisiana 222,008 4,625,470 $47,996.85 24
Maine 51,163 1,328,302 $38,517.60 45
Maryland 322,234 5,928,814 $54,350.50 11
Massachusetts 420,748 6,692,824 $62,865.54 6
Michigan 408,218 9,895,622 $41,252.38 39
Minnesota 289,125 5,420,380 $53,340.36 14
Mississippi 96,979 2,991,207 $32,421.36 51
Missouri 258,135 6,044,171 $42,708.09 35
Montana 39,846 1,015,165 $39,250.76 42
Nebraska 98,250 1,868,516 $52,581.83 15
Nevada 123,903 2,790,136 $44,407.51 33
New Hampshire 64,118 1,323,459 $48,447.29 23
New Jersey 509,067 8,899,339 $57,202.79 9
New Mexico 84,310 2,085,287 $40,430.89 40
New York 1,226,619 19,651,127 $62,419.78 8
North Carolina 439,672 9,848,060 $44,645.54 32
North Dakota 49,772 723,393 $68,803.54 3
Ohio 526,196 11,570,808 $45,476.17 29
Oklahoma 164,303 3,850,568 $42,669.81 36
Oregon 211,241 3,930,065 $53,750.00 12
Pennsylvania 603,872 12,773,801 $47,274.26 26
Rhode Island 49,962 1,051,511 $47,514.48 25
South Carolina 172,176 4,774,839 $36,059.02 49
South Dakota 41,142 844,877 $48,695.85 22
Tennessee 269,602 6,495,978 $41,502.91 38
Texas 1,387,598 26,448,193 $52,464.76 16
Utah 131,017 2,900,872 $45,164.70 30
Vermont 27,723 626,630 $44,241.42 34
Virginia 426,423 8,260,405 $51,622.53 19
Washington 381,017 6,971,406 $54,654.25 10
West Virginia 68,541 1,854,304 $36,963.19 48
Wisconsin 264,126 5,742,713 $45,993.24 27
Wyoming 39,538 582,658 $67,857.99 4

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.


Here, have another turkey sandwich...

Pat Powers commits more blogospheric malfeasance with a gratuitous attack on Ann Tornberg worthy of the Stranahan School of "Journalism." If you're able to read past the paralyzing funny headline, in which the man who defines party hackery calls Tornberg and Jeff Barth "Democrat party hacks," you'll find Powers reaching for an excuse to mention "Ann Tornberg" and "sexual assault" in the same paragraph.

Powers drags up a 2005 incident in which some Sioux Falls Roosevelt student-athletes engaged in sexual activity on a school bus on the way home from a football game in Spearfish. The incident led to one player pleading guilty to misdemeanor sexual contact with someone under 16. Students and coaches were disciplined, although, per contract and policy, the district did not publicize that discipline.

Powers then makes out Tornberg to be evil for doing her job as teachers' union leader at the time and defending the privacy rights of employees. He cites this passage from an offline December 2005 article from Dan Lederman's opposition research folder:

Ann Tornberg, president of the Sioux Falls Education Association, said contract provisions to protect an employee’s privacy are crucial. ‘The policy protects the rights of the employee,’ Tornberg said. She said Homan and the school district had followed the letter of the contract. ‘I compliment her for that. They have a high degree of professionalism,’ she said “District: Contract prevents report,” that Sioux Falls paper, 2005.12.10, cited in Pat Powers, "Democrat Party Hacks Trying to Out-Hack Each Other to Be the New SDDP Chair," Dakota War College, 2014.11.28].

If Tornberg's answer bears any fault, it lies in not ripping Superintendent Homan for her incautious damage-control e-mail that alerted the media to the discipline of the coaches. Otherwise, Tornberg spoke simple truth: employee privacy matters. Contract provisions matter. There's no hackery there, and certainly no embrace of sexual misconduct, as Powers so Stranahannily insinuates.

South Dakota Democrats will spend the next couple of weeks debating the relative qualifications of Ann Tornberg and Jeff Barth (and maybe others!) to lead their party to recovery and victory in 2016. Pat Powers will have nothing of intelligence or integrity to add to that debate.


Governing posts Bureau of Labor Statistics data showing job growth over the past twelve months in all fifty states. Without counting North Dakota's dangerous and poorly regulated Bakken job boom, South Dakota is slogging along in the middle among its neighbors:

State Job Change Oct 2013–Oct 2014 Average Monthly Change %Job Change Oct 2013–Oct 2014 Nonfarm Jobs Oct 2014
Iowa 15,400 1,283 1.0 1,556,900
Minnesota 49,400 4,117 1.8 2,847,000
Montana 6,800 567 1.5 455,100
Nebraska 8,300 692 0.8 991,800
North Dakota 22,500 1,875 5.0 471,700
South Dakota 6,000 500 1.4 422,700
Wyoming 6,200 517 2.1 298,100

To reinforce the point I made Friday, Minnesota has more progressive economic and fiscal policies, yet it is outpacing South Dakota on percentages for job growth.


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