Makenzie Huber/South Dakota Searchlight – As the state Supreme Court prepares to hear arguments Monday about what constitutes a conflict of interest, the former legislator whose situation sparked the question is repaying money her business received from the government.
Jessica Castleberry, R-Rapid City, resigned from the state Senate last year. Gov. Kristi Noem had publicly revealed that Castleberry’s business, Little Nest Preschool, received about $603,000 in federal pandemic relief funds routed through the state.
Noem and Attorney General Marty Jackley alleged that the situation violated a state constitutional ban on legislators having a direct or indirect interest in a state contract.
Castleberry resigned and signed a settlement agreement in August. She will ultimately pay $499,129.79 plus interest to the state, at a rate of $2,390.94 per month, which is nearly $29,000 per year.
She has so far paid over $7,000, on schedule. Her repayments go into the state’s general fund to be spent as legislators see fit.
Meanwhile, Noem has declined to appoint Castleberry’s successor or fill another open legislative seat in the Black Hills. Noem has said she’s waiting until the state Supreme Court issues her requested advisory opinion clarifying the meaning of the constitution’s conflict-of-interest language.
That means the two seats will be open when the Legislature convenes Tuesday for its annual lawmaking session.