2020 SD Legislature: Financial impacts of the coronavirus pandemic

By the time you read this article, the primary elections will be complete. I trust that you exercised your right to vote, and I hope that your vote was based upon your personal knowledge or research.  

I’ve said before that our system of education is based upon the necessity that the citizens be both “moral and intelligent.” That comes from our state Constitution in Article 8, Section 1. The point of that reference is to say the purpose of education was primarily to ensure the citizens are wise enough to read and understand the news of the day and be discerning enough to choose the right people to represent the communities.  

In these elections, both the primary and general, the candidates come from a variety of backgrounds and, likewise, present a variety of perspectives and interests. It’s important to do all you can to elect those who will best defend and support the principles contained within our U.S. and South Dakota constitutions. After all, it is those documents to which we must be true if we are to maintain a stable constitutional representative republic.  (I hasten to point out that the only aspect of our governmental system that was intended to be a democracy was the election of representatives who serve at the pleasure of the citizens).  

As we go through the rest of this year, there will be many campaigns concerning ballot measures. This will be a year which requires all of us to do our homework as there will be claims from every angle, and the truth will be lost in the 30-second soundbites. 

On a different note, we are now in the throes of assessing the impact the virus has had on our citizens and our economy. It seems our healthcare systems have been doing an excellent job in meeting the demands brought by the virus. Thank you to all who serve us in health care and first response. We are richly blessed to have some of the greatest providers in the world right here in our midst.  

The CARES Act funds have been delivered to the state, and we are still taking in the parameters set on those funds. The state is identifying the problems we have experienced with COVID and how those problems match against the requirements of the federal financial strings. This is likely going to be a yearlong challenge as the state is called upon to justify claims for and use of those funds. Presently, our Legislative Research Council staff are busy interpreting the over 800 pages of the Act, and they will also be interpreting the thousands of pages of “guidance” in the form of agency decisions, rules and regulations.  

The virus is taking its toll on our health and the health of our economy as these trillions of dollars are coming at a yet-to-be-identified cost. It’s not just paying back a loan, it’s managing an economy that has dramatically changed over the last several decades. We need to return to a production base that will ease our dependence on foreign control of our pharmaceuticals, our food and our energy. That doesn’t mean we become “isolationists,” but it does mean wisdom dictates we should never be solely dependent on another country for our essential needs.  

I will try to keep you apprised of the way in which the CARES Act funds are being consumed by the state. I do think there are categories of that Act which were unnecessary and were opportunistically added to serve special interests. In light of the fact that it all comes in the form of federal debt, it would be wise if we applied some scrutiny to those funds and returned that which was not connected with this pandemic. That would take political resolve, which is hard to come by at nearly any level of governance. (A side note: It is estimated that the total loss of tax revenue among the states due to the economic interruption is less than $200 billion. The first federal installment in the CARES Act was $2.2 trillion. That comes in many forms, such as direct payments to taxpayers and business loans. However, that is still 11 times the lost tax revenues).

Please let me and the other legislators know your thoughts and concerns about the ongoing COVID-19 issues.  

There are legislative meetings throughout the summer and you can review the recorded proceedings on South Dakota Public Broadcasting or go to the Legislative Research Council’s website to listen to the recorded committees and past floor debate. That’s found at https://sdlegislature.gov/

As always, please feel free to contact me at steven.haugaard@sdlegislature.gov