South Dakota
US Postal Service to downgrade South Dakota mail operations
The U.S. Postal Service has finalized its plan to downgrade the downtown Sioux Falls post office to a local processing center, shifting non-local mail operations to a facility in Omaha, Nebraska.
The reorganization, first introduced in January, has sparked concerns about slower mail delivery to rural communities because letters and packages formerly processed and sent from Sioux Falls will be routed through Omaha, 160 miles away.
USPS expects the change to impact 35 non-managerial jobs and three management positions in Sioux Falls. Those jobs are protected by union contracts, but the employees will likely have to shift to other facilities, said Todd West, president of the South Dakota chapter of the American Postal Workers Union.
In February, the USPS finalized a decision to downgrade its Huron facility to a local processing center, moving all non-local processing to Fargo, North Dakota.
“These moves are going to affect service,” West, who is based in Watertown, told News Watch. “If you want to mail something and you know it’s going to take three or four days to get there if you go through the post office, what are you going to do? You’re going to FedEx or UPS or another carrier.”
The Sioux Falls downtown facility is currently a processing and distribution center.
In a statement dated April 30, the USPS said that the Sioux Falls facility would remain open as a local processing center and will receive “up to $12.75 million in upgrades,” including upgraded sorting equipment, new lighting and renovated bathrooms and break rooms.
As for the reorganization, “the business case supports transferring mail processing outgoing operations to the (Omaha facility),” the statement read.
No timetable set for change
Mark Inglett, a USPS spokesman based in Kansas City, told News Watch that there is no current timetable for when the changes will take place.
Service times for first-class mail are already trending downward in South Dakota, Iowa and Nebraska, according to USPS data. The on-time rate for first-class mail for fiscal year 2024 is 81.4%, compared to 86.8% at the same time last year.
South Dakota Rep. Dusty Johnson told News Watch in a statement that the restructuring in Sioux Falls and Huron could affect delivery service and uproot employees.
“While the purpose of restructuring the Postal Service nationwide is to increase efficiency, in a state with significant rural populations like South Dakota, the change may decrease speed and efficiency,” Johnson said. “South Dakotans rely on timely service to get their news and pay their bills. Not to mention the dozens of positions that will be transferred out of state, forcing families to relocate or find another job.”
The reorganization is part of a $40 billion “Delivering for America” investment strategy spearheaded by Postmaster General Louis DeJoy, who was appointed by former President Donald Trump in June 2020.
It continues a trend from 2012, when the USPS closed processing centers in Aberdeen, Mobridge and Pierre, leaving South Dakota with facilities in Sioux Falls, Rapid City and Huron.
Postmaster general takes heat
The intent of the plan is to “upgrade and improve the USPS’s processing, transportation and delivery networks” in the face of changing mail habits and increased competition from package shipping companies.
In November 2023, the USPS announced it has lost $6.5 billion in the most recent fiscal year, despite its own projections that it would break even.
DeJoy cited inflation as a main cause of the poor performance and pointed to the ongoing restructuring as a positive step in turning things around.
“We are just in the early stages of one of the nation’s largest organizational transformations,” he said at the time.
The USPS on April 9 proposed an overall increase of nearly 8 percent on the price of postage, pending approval from a regulatory commission. Forever stamps would cost 73 cents instead of 68 cents under the proposal.
DeJoy was harshly criticized by U.S. senators at an April 14 oversight hearing that spotlighted mail delivery delays stemming from centralized USPS operations in the Atlanta area.
Democratic Sen. Jon Ossoff of Georgia cited statistics that showed on-time delivery rates of 36% and told DeJoy: “You’ve got weeks, not months, to fix this. And if you don’t fix it, I don’t think you’re fit for this job.”
‘Not changing service standards’
The postmaster general can only be removed from office by the USPS Board of Governors, whose chairman has shown support in the past for the “Delivering for America” strategy.
Under the proposed Sioux Falls plan, mail and packages destined for outside the immediate Sioux Falls area would be routed to Omaha and “aggregated with mail and packages from other areas going to the same places.”
“All they will be processing in Sioux Falls is mail for the 570 and 571 ZIP codes,” said West. “So if you drop a letter in the mailbox, whether it’s going to Sioux Falls, Brandon or Texas, it’s going to go down to Omaha. If it’s worked out down there that it’s going to Sioux Falls or Brandon, it’s going to come back to Sioux Falls and that’s when they’re going to process it.”
Some of the concerns about slower delivery have come from groups such as newspaper publishers who rely increasingly on mail delivery and pharmacies that send out prescriptions to customers.
USPS officials held a public input hearing March 13 in Sioux Falls, where they assured attendees that the Sioux Falls facility would not be closing and that no career employees would be laid off.
But Inglett’s statement that “we’re not changing our service standards” did not put minds at ease, including those of South Dakota’s congressional delegation.
Rep. Johnson joined Sens. John Thune and Mike Rounds in sending a letter to DeJoy on April 12 urging the USPS to “avoid downsizing or significantly reorganizing mail processing operations in states like South Dakota without considering the particular effects on rural areas.”
Less than three weeks later, USPS finalized the plan.
This story was produced by South Dakota News Watch, an independent, nonprofit news organization. Read more in-depth stories at sdnewswatch.org and sign up for an email every few days to get stories as soon as they’re published. Contact Stu Whitney at at stu.whitney@sdnewswatch.org.
South Dakota
South Dakota GOP primary preview: US Senate
While the race to secure the nomination for governor has dominated the headlines ahead of the June 2 primary, Republican voters will also choose a candidate for one of South Dakota’s two U.S. Senate seats.
Incumbent U.S. Sen. Mike Rounds, who is seeking a third, six-year term, holds a comfortable lead over his GOP primary challenger, Justin McNeal, a Navy veteran and business owner from Rapid City, according to the latest poll from News Watch and the Chiesman Center for Democracy.
Here is a recap of the two candidates along with their thoughts heading into the June 2 election. The winner of the Republican primary will meet Democrat Julian Beaudion and Independent Brian Bengs in the Nov. 3 general election.
Hometown: Fort PierreAge: 71Occupation: Insurance broker; businessman; former governor (2003-2011); U.S. senator since 2015In their own words:
Rounds provided the following statement to News Watch:
“Working in the U.S. Senate, I’ve stayed focused on results that matter for our kids and grandkids. That means keeping the government off your back and out of your business and wallet. That means keeping our communities safe and creating a business climate that encourages job growth to keep our kids in South Dakota. And that means safety through a commitment to our men and women in uniform.
This past summer, we worked with President Trump to pass the Republicans’ Working Families Tax Cuts legislation. Without Congressional action, the average South Dakota family would have seen a $2,500 tax hike this year. Our legislation not only prevented the largest tax increase in American history, but it also provided additional tax relief for hard-working South Dakota families. That includes no tax on tips, no tax on overtime and no tax on Social Security for nearly 9 out of 10 seniors.
We’ve accomplished some great things, but our work is not done. I am running for reelection to continue bringing results back home to South Dakota.”
Hometown: Rapid City (born in Illinois and raised in Texas)Age: 42Occupation: Business owner (Dakota BioChar); Navy veteran (2001-2007)In their own words:
“I’m feeling the people in South Dakota are ready for a change. The challenge we are running into is that not enough people know who we are, but as soon as they know who we are, it’s an easy decision for them,” McNeal told News Watch in a phone interview. “I don’t have millions and millions of dollars. I’ve been largely self-funding this race up to this point.”
McNeal, who is a licensed pilot, said he has flown his small plane to events throughout the state in an attempt to get his name out.
“I talk to people about the issues that matter and I tell them the biggest thing you can do to help me is tell 10 people about me and to go vote June 2. We need about 50,000 votes to win the primary,” he said.
McNeal is not critical of Rounds and conceded “he is very popular” but said Rounds has not done enough to tackle the country’s growing fiscal deficit.
“I don’t think Mike is doing a bad job. I’m just concerned with the federal debt and the people that got us into that mess are not going to be the ones to get us out of it,” McNeal said.
“This is going to cripple the country. It just seems like politicians are focused on what they can bring to their home district or home state. And the problem with that is every member of Congress is doing the same thing, so everyone is taking and taking without making sure we can pay for it.”
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/alexander.rifaat@sdnewswatch.org.
South Dakota
Supreme Court ruling robs Native Americans of ‘silent partner’ in legislative redistricting – ICT
South Dakota
Jon Hansen: The ‘Comeback Kid’ candidate for SD?
This is the second installment in a four-part series profiling the four candidates seeking the GOP nomination for governor of South Dakota.
DELL RAPIDS, S.D. – The city of Dell Rapids, roughly 20 miles north of Sioux Falls, labels itself “The Little City with the Big Attractions.” And it’s here, in a relatively humble law office off the main road leading into town, News Watch met with one of its biggest current draws.
Over the past few weeks, state House Speaker Jon Hansen has enjoyed a growing prominence in the race to be the Republican nominee for governor.
After polling at just 2% when he initially announced his candidacy in April of last year, Hansen, who at 40 is the youngest in the race, now finds himself within striking distance of being one of the two candidates that could make a potential runoff.
In a poll commissioned by News Watch and the Chiesmen Center for Democracy last month, Hansen, a lawyer by training, drew 18% of support from potential GOP primary voters.
If no candidate receives at least 35% of the vote on June 2, the runoff will be held eight weeks later, on July 28. The winner of that contest will meet Democrat Dan Ahlers, also of Dell Rapids, in the Nov. 3 general election.
So what does Hansen put his steady rise in the race down to after spending the previous few months being viewed as the long shot candidate?
“The debates were a huge factor because people across South Dakota were able to line up those four candidates on the stage and take a measure and get a sense of who is honest and who is genuine,” Hansen told News Watch.
In a poll of viewers after the first GOP gubernatorial debate on KELO-TV in March, Hansen was seen as the winner, while observers were also left impressed by his performance in the second debate co-moderated by News Watch and SDPB.
“The more people have been able to line up the four candidates, the more they have been coming our direction,” Hansen said.
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In the same News Watch/Chiesman poll from last month, 27% of respondents did not know Hansen, which, some observers believe, could indicate he has the most potential of the four candidates to grow his support.
“A lot of people hadn’t heard of us and in large part, it’s never been about us. Karla and I have been fighting for the issues. We’re not big self-promoters,” Hansen said, referring to his running mate for lieutenant governor, Karla Lems.
From tragedy to political awakening
Hansen’s early childhood was marked by the death of his father, who died from a self-inflicted gunshot wound.
Hansen describes the experience as “awful” but that it allowed him, his mother and his sister to grow closer.
“For awhile it was just my mom, my sister and I, and what really pulled us through that was the unconditional love we had for each other,” Hansen said.
His mother eventually remarried and they moved from Yankton, where he was born, to Dell Rapids, where he has lived for most of his adult life.
He said he had fond memories growing up in Dell Rapids, but he wasn’t the best of students. He also wasn’t interested in politics.
Hansen said that all changed when he got a job working at the local movie theater, where he befriended a female coworker involved in the pro-life movement.
“One day she brought up the issue of abortion and, after we had a bit of a back and forth, I told her. ‘I don’t get it. The baby doesn’t even know the baby exists. I don’t see what the big deal is?’ Then it got real quiet and I noticed that she started to cry. In that moment, I realized there was something I was missing,” Hansen said.
“I think a lot of people have those moments that get them engaged in the political process,” he said.
Hansen said the conversation not only awakened his desire to enter the political arena but that it also reconnected him to his Catholic faith.
He is married to his high school sweetheart, Sheila, and they have six children.
Hansen subsequently got involved in anti-abortion campaigns in 2006 and 2008, which didn’t turn out the way he wanted. In both years, South Dakota voters rejected initiatives that would have instituted a near-total ban on abortions.
“The pro-life side lost those fights, but it started the journey I’m on now.”
After completing an internship at the South Dakota Legislature during college, in 2010 Hansen successfully won an open seat in the state House against a Democratic opponent who, it turned out, was his high school government teacher.
“Believe me, he never saw it coming because I was not a good high school student,” Hansen joked.
Hansen served one term and, after his return to the Legislature in 2019, played a role in South Dakota eventually enacting an abortion ban in 2022. On the campaign trail, he has also touted his involvement in defeating Amendment G in 2024, which would have enshrined the right to an abortion in the state’s Constitution.
‘In the arena’
Hansen said his work on abortion underscores his ability to deliver for the conservative Republican agenda.
“I’ve not just talked. I’ve been in the arena fighting the fight on the issues,” Hansen said.
Besides abortion, Hansen also highlighted his work to lower property taxes, which has come under heavy scrutiny from one of his primary challengers, U.S. Rep. Dusty Johnson.
In recent weeks, Johnson has utilized his significant campaign war chest to attack Hansen’s role in the passage of a series of bills during this year’s legislative session that, in some fashion, lower property taxes in exchange for raising sales taxes.
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In particular, there is Senate Bill 245, which will create a property tax relief fund using money generated from the planned 0.3% sales tax increase set to take effect next year.
Former Gov. Kristi Noem enacted a law in 2023 that lowered the sales tax from 4.5% to 4.2% until 2027. Efforts to make the measure permanent were rejected in the state Senate.
Hansen said Johnson’s claims that Hansen has raised sales taxes are “disingenuous” and pointed out that, at least when it comes to the scheduled sales tax increase, it was a case of trying to make lemonade out of lemons.
“I just don’t think it’s appropriate for South Dakotans to give out tax breaks to some of the world’s richest tech companies. They want to come to South Dakota, they can pay taxes just like everyone else.”
– Republican gubernatorial candidate Jon Hansen
“We (the state House) wanted to make the cut permanent, but we didn’t have the votes in the Senate. Every year after, we tried to make that sales tax cut permanent and every year the Senate didn’t have the votes,” Hansen said. “So the reality is it was going up anyway.”
“The next best thing we could build a consensus around was take all that money, dollar for dollar, and put that towards property tax relief,” Hansen said, arguing that the break in property taxes will outweigh any rise in sales taxes.
Hansen said if he were to ascend to the top job in Pierre, he would focus on examining state finances to see where he could potentially cut more taxes.
“We’re going to look at our state budget and cut government spending and use that savings to provide more tax relief,” he said.
Hansen said he also wants to clean up what he sees as a culture of grift in Pierre that favors larger corporations over small businesses.
“It’s a breeding ground for corruption. You see it when people who sit on the Governor’s Office of Economic Development (GOED) board dole out money to certain companies then get executive jobs with those companies,” Hansen said, citing the recent example of CJ Schwan’s, a food manufacturer that hired a former GOED commissioner and received $69 million in state grants and loans.
“I don’t think it’s appropriate. It seems very Washington, D.C.-esque to me,” Hansen said.
Hansen’s hostility toward larger corporations is further illustrated by another piece of key legislation he passed in this past session.
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Along with Senate President Pro Tempore Chris Karr, Hansen passed Senate Bill 135, dubbed the Data Center Bill of Rights for Citizens, which puts certain restrictions in place for any future data center project.
He ruled out being open to providing data center companies any special tax privileges to operate in the state.
“I just don’t think it’s appropriate for South Dakotans to give out tax breaks to some of the world’s richest tech companies,” Hansen said. “They want to come to South Dakota, they can pay taxes just like everyone else.”
With the campaign entering the final stretch, what’s his strategy to win over voters before they vote?
“We’re going to continue being positive, share our vision of the state and show our track record of results,” Hansen said.
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/alexander.rifaat@sdnewswatch.org.
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