The rejection of Referred Law 14 denies the establishment of a state fund to grant money to large construction projects.
KSFY News spoke with supporters on both sides of Referred Law 14 to get their reaction.
Opponents of the law are celebrating tonight.
They say the law would take millions away from the general fund for education and healthcare
But supporters are disappointed.
They say the law was a benefit to the economic development of the state.
Wind energy, power plants, power lines, along with laboratories and facilities for testing are some of the large scale construction projects which would benefit from the fund.
Supporters and opponents of the law disagree on the economic benefits of a large development fund.
Ben Nesselhuf, chair of the South Dakota Democratic Party said "it means south Dakotans have decided it's more important to invest in our kids and our seniors instead of corporations. I think it's a very good sign that South Dakotans know that the best economic development is to invest in our people.
David Owen, President of the South Dakota Chamber of Commerce, said "even the opponents said they believe in economic development. I don't think we're debating whether we do economic development, we're debating how we best go about that."
"After a period of reflection about what voters are actually saying, we need to sit down with a large group and either go back to refund policy of the past or do something to make sure south Dakota continues to be competitive for the largest investments as we compete with other states so they don't steal our own industries. It was a great debate and a great conversation. We look forward to forming a very workable policy in the future," Owen added.
Nesselhuf says he's not surprised it looks like it won't pass.
While Owen tells me the law was misunderstood.
He says it's possible they didn't get the message of the benefits of the law across to the voters.
Tuesday, December 3 2013 10:48 PM EST2013-12-04 03:48:06 GMT
Canton residents have voted down a proposal to build a new aquatic center. The city required 60% of voters to approve the bond to pass; only 50.9 voted yes. Canton financial officer Kyle Cwach said 412 votedMore >>
Canton residents have voted down a proposal to build a new aquatic center.More >>
Wednesday, December 4 2013 11:43 PM EST2013-12-05 04:43:28 GMT
Two children are unaccounted for after a destructive house fire Wednesday in rural Minnesota. The fire at a two-story single family farmhouse in Lucan, Minn., a town about 22 miles east of Marshall, wasMore >>
Two children are unaccounted for after a destructive house fire Wednesday in rural Minnesota. More >>
Wednesday, December 4 2013 11:24 PM EST2013-12-05 04:24:42 GMT
After two days of blowing snow, the Aberdeen community is getting ready for another round of dangerous winter weather. The temperature began dropping Wednesday, starting in the 20s Wednesday morning, droppingMore >>
After two days of blowing snow, the Aberdeen community is getting ready for another round of dangerous winter weather.More >>
Wednesday, December 4 2013 10:04 PM EST2013-12-05 03:04:56 GMT
Three people were hospitalized after a house in central Aberdeen early Wednesday evening. Aberdeen Battalion Chief Randy Meister said crews responded to the home in the 900 block of S. Main around 5 p.m.More >>
Three people were hospitalized after a house in central Aberdeen early Wednesday evening.More >>
Wednesday, December 4 2013 10:00 PM EST2013-12-05 03:00:12 GMT
The dreaded shoveling of snow -- and for business owners downtown, there's an even bigger incentive to get it done faster: customers! But one business owner says the city isn't doing enough. "On theMore >>
Downtown Sioux Falls business owners were out shoveling multiple times on Wednesday clearing paths to their shopsMore >>
Wednesday, December 4 2013 9:39 PM EST2013-12-05 02:39:18 GMT
Fire destroyed a home in Wessington Springs Wednesday evening, a Jerauld County Sheriff deputy told KSFY. The home in southern Wessington Springs was totally engulfed when firefighters arrived on scene.More >>
Fire destroyed a home in Wessington Springs Wednesday evening, a Jerauld County Sheriff deputy told KSFY.More >>
Wednesday, December 4 2013 7:28 PM EST2013-12-05 00:28:07 GMT
Court documents released Wednesday said the suspects believed there was $100,000 in Jordan LeBeau's home. Officer Sam Clemens said, "I think it's pretty obvious that this is drug related. What we foundMore >>
Court documents released Wednesday said the suspects believed there was $100,000 in Jordan LeBeau's home. Officer Sam Clemens said, "I think it's pretty obvious that this is drug related. What we found inside the house also backs this up. This house was targeted it wasn't a random act, they purposely went to this house."More >>