South Dakota Voters Approve How Cement Plant Proceeds Are Paid Out
One of two constitutional amendments approved by voters Tuesday night changes how cement plant proceeds are paid out.
Proceeds from the 2001 sale of the state-owned Rapid City plant were put into a trust fund, and constitutionally, 12 million dollars a year were transferred to the state general fund.
Representative Jacqueline Sly of Rapid City says locking in 12 million dollars resulted at times in a mandated dip into the principle.
“Once you go into the principle of a trust fund, you very quickly lose the fidelity of that main income for it, and if we would have an economic downturn that could last for more than a year or two years or three years, it would deplete the fund, says Sly.”
Voters agreed that transferring four percent of the market value per year made more sense. Under the new amendment, that amount goes into the general fund to support education.