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3M, Marmen Receive First Welfare Checks from New Economic Development Fund

Governor Dennis Daugaard says South Dakota doesn't have the money to expand Medicaid. Besides, if anyone should get welfare, it's children and the disabled, not able-bodied adults.

3M must be run by kids in wheelchairs:

3M announced Wednesday it will be expanding manufacturing capabilities in its Brookings facility later this fall thanks to the newly established Reinvestment Payment Program. 3M was the first company to receive approval under the program.

“I am pleased with 3M’s decision to expand within South Dakota,” said Gov. Dennis Daugaard. “The Reinvestment Payment Program and Workforce Development Program are two critical programs for the creation of permanent, full-time jobs and both play a valuable role in the continued growth of South Dakota’s economy.”

The Board of Economic Development approved a reinvestment payment of up to $234,000 to offset the sales and use tax paid on eligible equipment costs incurred during the project. In addition, the GOED will supply up to $17,000 in Workforce Development Program funds to assist with new employee training. The expansion is slated to create a total of 29 jobs [Governor's Office of Economic Development, press release, 2013.08.28].

There must not be any able-bodied adults at Marmen Energy, either: the state has approved handing them $600K out of the Senate Bill 235 slush fund to expand their wind tower plant in Brandon.


  1. TonyAmert 2013.08.29

    How is this different than the federal government supporting the Hatchery?

  2. caheidelberger Post author | 2013.08.29

    We could start with the fact that, unlike 3M and Marmen, the Hatchery is a federal facility directly serving a public purpose.

  3. sid 2013.08.29

    Considering the track records of businesses that GOED has given money to in the past, should probably start short-selling 3M stock...

  4. TonyAmert 2013.08.29

    Isn't it just funding going to a project that wouldn't exist without public funding? Or am I generalizing too much?

    The "advantages" of the Hatchery are generic and could easily be compared with this use of money directly. Here they're offering 29 jobs for a single payment of $250k. Seems like a much more compelling advantage vs. the ongoing cost of the Hatchery.

  5. Thad Wasson 2013.08.29

    A company with a 77 billion dollar market cap needs a some start-up cash now and then.

  6. John 2013.08.29

    Really, Tony? Really? The hatchery is a public service. The hatchery is not in business to make a private profit. Business is in business to make a private profit and they should so do using private costs - not socialized costs. Government should not be picking winners. Really Tony. How socialist of you. How unrepublican of you.

  7. caheidelberger Post author | 2013.08.29

    3M and Marmen would likely exist without public funding. I do not deny that the jobs case for the Hatchery may be the most compelling one to make with our political leaders, and the Booth Society is doing that.

  8. TonyAmert 2013.08.30


    Well, they only kind of are doing that. They point out a bunch of economic advantages due to spending a bunch of money but don't provide a comparative advantage vs. Other spending options such as subsidizing private companies.

  9. caheidelberger Post author | 2013.08.30

    Ah, but into that comparative analysis, we must factor the hard-to-answer question of what activity would have taken place without government subsidy. The Hatchery exists due to government action. It would not exist without. How likely would 3M and Marmen be to carry out their porposed expansion to meet market needs without government subsidy?

  10. Douglas Wiken 2013.08.30

    Why should taxpayers subsidize Tony Amert's SDSM&T?

    The fish who get sucked into SDSM&T and then drown there because of incompetent instruction and testing might be similar to the fish dumped out of the hatchery.

    More seriously, too many years ago, Art Sogn of SDSU on Gardenline or some such from SDSU on SDPB-TV, compared the value of fish caught with the value of fishing equipment sold. Public fish have a wonderful return for retail businesses.

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