PIERRE, SD – South Dakota legislators are meeting is a special session today, some in Pierre and some remotely as they decide how to spend hundreds of millions of federal dollars provided by the CARES Act.
Governor Kristi Noem addressed the joint session at the beginning, laying out the federal ground rules. “I’ve spent countless hours on the phone and out in D.C. asking for flexibility in how South Dakota can spend this money. But the Department of Treasury tells us this money can only be used to cover costs – very specific costs. If you have not read their guidance, I would encourage you to do so. My team has spent hours on the phone talking with you and about Treasury’s guidance.”
Noem says the guidelines force the state to spend the money before the end of the year. “In order to comply with the law, these funds must be used in response to the COVID-19 pandemic,” she relates. “This includes many costs incurred by the state, by cities and counties and by education institutions.”
She continued, “We can also use the funds to help private entities if they can show they were negatively impacted by COVID. These expenses have to be incurred between March 1 and December 30 of this year. And all that money has to be sent by December 30th. Not just set aside, not obligated in a contract, it actually has to be spent.”
Noem says they have seen results from some of the early spending. “To date, we’ve allocated funding for state and local governments to respond to the virus. Tourism, the number two industry in the state has taken a tremendous hit. Treasury specifically says we can use this money on tourism efforts.” She adds, “Treasury allows us to spend $500 per student to help schools get back to normal so we’ve set aside $75 million for school.”
Noem also said one hundred million dollars was set aside each for public safety and the re-employment fund.
Lawmakers will vote on recommendations from the Joint Committee on Appropriations.
