PIERRE, S.D. (AP) - South Dakota legislative leaders say they are working to find a new way to provide financial incentives that would help recruit new businesses to the state.

Voters in the November election rejected Republican Gov. Dennis Daugaard's plan to use tax money to give incentive grants to companies that otherwise would not build in South Dakota.

House Republican Leader David Lust of Rapid City says it's crucial that South Dakota have some kind of incentive plan to compete with nearby states that offer incentives

But House Democratic Leader Bernie Hunhoff of Yankton says he does not want to finance a business incentive program with tax money that would better be spent to support education.

House and Senate leaders plan to meet next week to begin discussion on business incentives.