PIERRE, S.D. – Gubernatorial candidate U.S. Rep. Dusty Johnson wants to use resources from a key economic development fund to launch a new initiative aimed at providing more incentives for South Dakota entrepreneurs.
In a plan unveiled March 13, the Republican said if elected he will invest $2 million from the Future Fund to create "Launch South Dakota," a program that will expand the number and size of entrepreneurship-related grants.
“Chasing huge companies like TikTok grabs headlines, but building South Dakota means investing in South Dakotans,” Johnson said in a statement. “We’re going to back the people who already call this place home, folks who know their industries inside and out and are ready to build businesses right here where they live.”
The Future Fund, administered by the Governor's Office of Economic Development, was created in the 1980s to grow the economy.
Alexander Rifaat
Johnson appeared to be making a reference to Gov. Larry Rhoden's support of an attempt by Wyoming-based businessman Reid Rasner last year to purchase TikTok and move its headquarters to South Dakota. Rasner later "paused" that bid. And both his stated personal fortune and political acumen have since been called into question.
According to Johnson's plan, "Launch South Dakota" would double the amount awarded to entrepreneurs for "proof of concept" plans from the current $25,000 and expand the number of eligible sectors to include industries such as software development and artificial intelligence.
The program would also double the $20,000 amount given to the winners of the Governor's Giant Vision competition to $40,000.
In addition, his plan calls for an expansion of startup coaching and allocating more funds from the federal State Small Business Credit Initiative toward venture activities.
In a phone interview with News Watch, Johnson said his proposal is part of a larger plan to create a more locally driven South Dakota economy.
"I think our state has been too focused on chasing decisions that are made in corporate boardrooms in New York. 'Launch South Dakota' is a shift towards doing a better job investing in South Dakota founders who are launching and growing South Dakota businesses," Johnson said.
Johnson also argued South Dakota needed to increase its level of investment in entrepreneurship programs if it didn't want to fall behind other states.
His proposal highlights that South Dakota allocated all of the $60 million in federal State Small Business Credit Initiative money provided by the 2021 American Rescue Plan toward loans while Wyoming put its entire $58 million allocation towards venture activities.
"We have an opportunity here to step up our game. ... Other states have led the way and shown how important it is to grow your own," he said.
Poll results bolster Johnson
Johnson also expressed confidence in the race after a new poll by Emerson College commissioned by KELO-TV showed him with a 10-point lead in the four-person contest to secure the GOP nomination.
Johnson received support from 28% of respondents, while Aberdeen businessman Toby Doeden had 18%, Rhoden got 17% and House Speaker Jon Hansen received 14%. Almost a fourth of respondents, 23%, were undecided.
SD News Watch
In a dig at Rhoden, Johnson said Doeden is his closest competitor for the nomination.
"When you see Doeden polling at second place, and having far more resources than Rhoden, I increasingly get the sense this is a two-person race," he said.
Rhoden and his allies have dismissed the poll, saying the numbers don't align with their own internal polling, and that support for the governor will increase now that he will be able to tout several legislative accomplishments on the campaign trail.
Speaking to reporters at a press conference March 12, Lt. Gov. Tony Venhuizen, Rhoden's running mate, said an internal poll conduced for the campaign by Public Opinion Strategies found 73% of primary voters "approve the job Rhoden is doing as governor" and that in the four-person race, there is only a 5-point gap between the governor and Johnson, with no candidate receiving the 35% needed to avoid a runoff.
Trusted, independent sources of information are needed more than ever. Partner with us to produce fact-based news.
"What this tells me is that this is a very competitive primary that we will be going into," Venhuizen said. "Our focus has been on getting results and getting through the legislative session and the voters will see that."
When asked whether he was looking forward to challenging his opponents on the debate stage, Rhoden said that, while he didn't "relish" partaking in debates, he is prepared for the battle ahead.
"Bring it on. We're going to have a great discussion," he said.
News Watch and South Dakota Public Broadcasting will host a televised Republican gubernatorial forum in Sioux Falls on April 13.
South Dakota News Watch is an independent nonprofit. Read, donate and subscribe for free at sdnewswatch.org. Contact politics and statehouse reporter Alexander Rifaat: 605-736-4396 or alexander.rifaat@sdnewswatch.org.
