In just four days, South Dakotans head to the polls. Amid high-profile state and national races, voters also cast their ballots in favor or against seven other measures. Four of those are proposed amendments to the state’s constitution.
South Dakota voters have a packed ballot this election year. They have four different opportunities to alter the state’s constitution. Those amendments are conveniently labeled M, N, O and P.
Constitutional Amendment M is the first on the list. It changes some state laws that apply to corporations. Doctor Mike Card is an associate professor of Political Science at the University of South Dakota.
"Our founders of our state really tried to limit corporations because they felt owned by railroads and large banks out of the Minneapolis/St. Paul area, so they were doing whatever they could to limit the power of corporations, especially over the agricultural community," Card says.
Card says Amendment M removes some restrictions for corporations that just don’t fit with modern business practices. He says in the past lawmakers were concerned big corporation leaders would run over small South Dakota farmers, so they built in cumulative voting requirements to protect small shareholders.
"You don’t have control over the corporation, but you can make sure your voices get heard," Card says.
Card says a potential drawback exists in eliminating that protection for minority owners.
The second proposal on the ballot is Constitutional Amendment N. It repeals the requirement that state lawmakers are reimbursed at five cents per mile. Jason Frerichs is a state senator from Wilmot. He pulls his tractor over to explain that Amendment N applies to only legislators’ first and last trips to the session.
"It was definitely a non-partisan issue," Frerichs says. "I think folks from both sides of the aisle were understanding that it’s something that just needs to be done."
Frerichs says the five-cent rate is outdated; it was established when most lawmakers used the railroad and not their own vehicles. He says removing this restriction helps diversify South Dakota’s legislative roster.
"We are a citizen legislature, and we need to make every opportunity to have the barriers broke down as much as possible, so that way ordinary citizens feel comfortable in wanting to put their name on the ballot and run for the legislature," Frerichs says.
Frerichs says lawmakers establish their own wages and regular mileage reimbursement in open session, and that’s the same way the amendment would allow the legislature to determine this travel reimbursement.
Next, Amendment O seeks to change the way South Dakota distributes money from the cement plant trust fund. About a decade ago, South Dakota sold its cement plant. The money from the sale went into a specific fund. Corey Brown is a state senator from Gettysburg, and he chairs the Appropriations committee. He says whether the decision to sell the cement plant was good isn’t the issue; Amendment P addresses the trust fund’s management.
"The idea behind any trust is that you’re going to keep the principle in tact and only spend the interest that comes off that trust fund," Brown says. "The way they structured this particular trust fund, they said, every year the state will take out a minimum of $12 million, regardless of the principal or the condition of the fund."
Brown says that’s a problem, because the cement plant trust fund is eroding. Brown says the fund started with about $250 million. A few years ago, that principle dipped to $179 million.
"The actuarials and the accounts tell us that if the value of that fund ever hit $171 million, and we were only $8 million away from that three years ago, that you can never earn enough interest to keep the fund alive as long as you keep taking that $12 million out," Brown says. "So essentially the thing would go into a death spiral to the point and just diminish over the next decade to the point where the fund would disappear and we wouldn’t have anything."
Brown says Constitutional Amendment O eliminates that requirement to remove $12 million from the fund each year and replaces it with a percentage. He says taking four percent from the trust fund does decrease the money the state can use for a few years, but Brown says that rebounds. He notes the amendment also mandates the trust fund dollars directly apply to education funding.
Last but not least is Constitutional Amendment P. This measure seeks to add a balanced budget requirement to South Dakota’s constitution. The high document already prevents the state from taking on debt. Supporters of Amendment P say writing in a specific balanced budget requirement can help the state’s credit rating while holding current and future leaders financially responsible.
Stan Adelstein is a state senator from Rapid City. Adelstein says the measure isn’t as ideal as it appears, due to the way the balanced budget amendment is worded.
"It allows the governor or legislature to balance the budget by 'anticipated revenue.' What are anticipated? By who?," Adelstein asks. "Amendment P provided not only anticipated revenue but it says 'and funds.' F-U-N-D-S. Well, what do they mean by funds?"
Adelstein says the state has more than a dozen funds, one of which tops one billion dollars. He questions whether that could be applied improperly under the amendment.
"Who doesn’t want a balanced budget? They say, well, we’ve always had one. Just a minute. Is that by accident? No, it’s because our constitution now requires it." Adelstein says.
Adelstein says that mandate is already clear in the state’s highest list of laws because revenue cannot exceed expenses.
Regardless of how people decide to vote on the four constitutional amendments, political scientist Mike Card says these ballots have long-term ramifications.
"They set the permanent law, the guiding document that governs South Dakota, establishing the people as the sovereign equal with the legislature," Card says.
Card says that’s what allows everyday South Dakotans the ability to directly craft the laws that govern their lives.
You can view a sample ballot and read more about each of the constitutional amendments at this link.