Cost of workforce ads starring Noem rises to $9 million

Date:

Most of the money comes from employer tax fund controlled by governor

By: Joshua Haiar – SD Searchlight

            Governor Kristi Noem’s administration has signed a contract amendment raising the maximum spending on workforce recruitment ads starring the governor to $9 million.

            The contract is publicly viewable in the state’s online portal for financial documents, Open.SD.gov, which also shows the state has paid $8.5 million to the firm managing the campaign so far. The original contract from last year, prior to amendments, was for $5 million.

woman in work gear standing in front of fuse box
South Dakota Gov. Kristi Noem is featured prominently in the "Freedom Works Here" ad campaign. (Photo: Screenshot)

            The Freedom Works Here campaign showcases Noem stepping into various high-demand jobs and inviting applicants to fill openings in the state.

Launched last summer, the campaign entered its third round Monday with a new video ad featuring Noem as a homebuilder. The national campaign has further elevated the profile of Noem, who is under consideration as a running mate for presumptive Republican presidential nominee Donald Trump.

            Some lawmakers have criticized a lack of clear data demonstrating the workforce campaign’s effectiveness or lack thereof.

            The governor’s Monday press release about the newest ad said, “Thousands and thousands of families have already moved to South Dakota, and thousands more are in the process of coming here.”

            In response to questions Tuesday from South Dakota Searchlight about the ads’ effectiveness, the Governor’s Office of Economic Development responded by email. The office said the number of job openings in the state has dropped by 4,000 since the campaign began. The office also said 9,400 people who “worked directly through the Freedom Works Here process” have shown interest in moving to South Dakota, and another 2,400 have received individual assistance to begin the process of moving to the state.

            “Anecdotally, we are hearing from even more folks who did not utilize the formal process but were spurred to move here by the ads,” the office said.

            The Governor’s Office of Economic Development contracts with an Ohio firm, Strategic Media Placement, doing business as Go West Media, to run the campaign. Both entities are subsidiaries of The Strategy Group, whose CEO Ben Yoho managed Vivek Ramaswamy’s unsuccessful campaign for the Republican presidential nomination.

            During a legislative hearing in January, a former Noem administration official testified that the Ohio firm seemed predestined for selection to carry out the campaign. State Sen. Lee Schoenbeck, R-Watertown, said during the hearing that the Ohio firm’s idea for the campaign was “clearly stolen” from a similar proposal submitted by Lawrence & Schiller, of Sioux Falls.

            Most of the money for the workforce campaign comes from state government’s Future Fund, which is controlled by the governor.

            South Dakota employers pay into the Future Fund when they submit payroll taxes for unemployment benefits. The Future Fund receives a fraction of an additional percent — which the state describes as an “investment fee” — on top of those payroll taxes.

            According to the most recent data available from the state Department of Labor and Regulation, 28,261 employers paid $23 million into the Future Fund in 2022, which equated to an average of $814 per employer.

            State law says the Future Fund must be used “for purposes related to research and economic development for the state.” Unlike other funds administered by the Governor’s Office of Economic Development, Future Fund expenses don’t go through a board of citizen appointees for vetting or approval.

            Responding to recent controversies about the fund, lawmakers passed and the governor signed a bill in March requiring biannual reporting to legislators about the governor’s use of the fund.

            Rep. Scott Odenbach, R-Spearfish was one of the bill’s sponsors.

            “Many people wonder if this is a proper use of tax money,” Odenbach said Tuesday. “As the spending on this program grows so does the need for more vigorous oversight. I am hopeful that this session’s bill is just the beginning of reforms to Future Fund spending.”

            Of the $8.5 million paid to Strategic Media Placement so far, $7.5 million has come from the Future Fund, and the rest has come from other state funds, according to Open.SD.gov.

            The Governor’s Office of Economic Development spent an additional $130,000 from its marketing funds last year to wrap a NASCAR vehicle with a Freedom Works Here-themed design for two races.

South Dakota Searchlight is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence.

Share post:

spot_img

Related articles

Relaunched Open Meetings Commission finds violations in five of six cases

By Joshua Haiar, South Dakota Searchlight The Lincoln County Commission violated South Dakota’s open-meetings laws when three commissioners attended a...

Minnehaha County auditor defends counting delays, proposes restrictions on absentee ballots

Leah Anderson suggests in-person voting should end on Friday before Election Day By Makenzie Huber, South Dakota Searchlight       SIOUX FALLS —...

Staunch conservatives take leadership positions in GOP-led state Legislature

By Joshua Haiar, South Dakota Searchlight       A group of staunchly conservative Republicans claimed control of key leadership positions in the...

Game, Fish and Parks achieves 1.6 million acres of public access, sets 2 million acre goal

By Joshua Haiar, South Dakota Searchlight The South Dakota Game, Fish and Parks Department has surpassed its goal of creating...

Log In

Latest articles

Phase One of 4th street project nears completion

Concrete crews have completed all concrete work on 4th Street, Center Avenue and Canyon Avenue including curb and...

Williamson proud of his service & grateful for the Honor Flight

By Garrick Moritz, Gazette Mark Williamson was pretty humble about his recent trip to Washington DC on an Honor...

Jasper man dies in fatal crash

Minnehaha County, S.D.- A Jasper, MN man died in a collision Thursday evening, November 14, three miles north...

Pierret Benefit Well Supported

Though we have not received the final tally of funds raised at the Mark Pierret Benefit held on...

GHS Football celebrates players

The GHS Annual Football Banquet honored the parents and players after a rough season on Monday, Nov. 18. The...

A new sport at Garretson

The rise of powerlifting across the state has found its way back to the Blue Dragons by Delilah Johnson,...
s2Member®