National

South Dakota Democratic Party closes all offices after federal audit, officials say

The South Dakota Democratic Party is closing all of its offices in the state in light of mounting financial troubles, according to party officials.

State Party Chair Paula Hawks said that by the end of September the party will abandon its two physical office spaces — its headquarters in Sioux Falls on the eastern edge of the state and its field office in Rapid City in the west, the Argus Leader reports.

“We are feeling very optimistic that we will be moving forward with strength and financial stability,” Hawks said, adding that no employees were laid off and that staff will soon work remotely, according to the newspaper.

Hawks said rent for those spaces was the party’s largest expenditure and that the closures would be temporary, KELO reported.

The decision to shutter both offices comes after the Federal Election Commission’s auditing “found that the state party wrongly distributed nearly $3 millions in funds, received contributions from unregistered groups, and underreported debts and obligations,” according to KELO.

Hawks said closing the offices is a step to help the party regain its financial footing, WNAX reports.

Hawks told WNAX in an interview that “we’re doing our best to be fiscally responsible and make sure that we’re making the best decisions not only for our party but for the candidates who will be running in 2020 … really what we’re working to do is secure the financial health of the party while helping elect those strong Democratic leaders across South Dakota.”

FEC filings show that the party began July with just more than $31,000 on hand and ended the month with little more than $3,000, the Argus Leader reported.

Hawks, a newly appointed party chair, said in a statement released by the party in August that officials are working with the FEC “to address past report filings dating back to 2015.”

“Unfortunately there has clearly been a lack of oversight in the financial management of” the party, Hawks said. “Moving forward this new administration has and will continue to ensure accuracy in our reporting at all levels.”

This story was originally published September 3, 2019 at 12:06 PM with the headline "South Dakota Democratic Party closes all offices after federal audit, officials say."

Jared Gilmour
mcclatchy-newsroom
Jared Gilmour is a McClatchy national reporter based in San Francisco. He covers everything from health and science to politics and crime. He studied journalism at Northwestern University and grew up in North Dakota.
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