A bill aimed at better preparing the state of South Dakota for an economic collapse of the federal government failed in the House State Affairs Committee.
Those backing the legislation testified that they believe a collapse of the federal financial system causing a crisis worse than the Great Depression is possible in the coming years.
But not everyone in state government agrees. State Economist Jim Terwilliger asked committee members to oppose the bill.
Terwilliger says the legislation circumvents the normal process of creating a summer study group.
He also questions the economic outlook of those who back this bill. Terwilliger says he meets with the state’s economic advisors, who are experts based at South Dakota universities.
“Not one time has one come to me and said you know I think there is a high probability that in the next year we’re going to see a major financial crisis,” says Terwilliger.
But those backing the legislation say it’s important for the state to be prudent and prepare for a possible economic collapse.
Opponents countered that the state did fine in overcoming the latest economic crisis and that this legislation is not needed.
Lawmakers agreed with the state economist and killed the bill by a vote of twelve to one.
Statehouse
SDPB Radio Coverage of the South Dakota Legislature. See all coverage and find links to audio and video streams live from the Capitol at www.sdpb.org/statehouse