Kristi Noem Protected Her State’s Economy — And Kept People Safe
She resisted the pressure to lockdown.
Gov. Kristi Noem of South Dakota announced Thursday that her state achieved a $19 million surplus for the 2020 fiscal year.
For Noem, one of five governors who did not issue a stay-at-home order, it was a vindication of her hands-off approach to the COVID-19 pandemic, which protected her state’s economy while at the same time safeguarding the health of the people of South Dakota.
“As many states closed their economies, I trusted South Dakotans to make the right decisions for themselves and their loved ones,” said the 48-year-old Republican governor in announcing the surplus. “Our future remains bright because we kept our state open for business and we live within our means.”
South Dakota experienced one of the smallest outbreaks of the virus in the nation even without the stringent measures imposed on most of the country. This is likely a consequence of the state’s low population density, its rural nature, voluntary social distancing, and the reasonable restrictions Noem did set in place.
Only 116 deaths attributed to COVID-19 have been recorded as of Friday in the state, which has the fifth-lowest population density in the nation and a population of around 880,000. South Dakota has also not experienced a recent climb in cases like many states have — on Thursday, July 16, the state recorded only 42 new cases.
The surplus is more evidence that South Dakota’s economy has been spared the devastation wrought in other states by the pandemic.
Across the country, states are facing budgets destroyed by drastically reduced tax revenue and increased spending to fight the virus: Connecticut had a $1 billion deficit for the 2020 fiscal year and New York had a $13.3 billion deficit for the fiscal year, for instance.
Sales and use tax, South Dakota’s largest revenue source, grew 4.6 percent in 2020 over the last fiscal year, according to a press release.
South Dakota has also recorded the second-smallest contraction in gross domestic product of any state in the first quarter of 2020, according to the Bureau of Economic Analysis. Only Nebraska, which also did not have a stay-at-home order, fared better.