PIERRE, SD – The Executive Board of the South Dakota legislature got an update on federal funding coming to the state due to the coronavirus pandemic.
Senator Jim Bolin of Canton says Auditor General Marty Guindon told them the first half of the federal money is in the bank.
“Six hundred million dollars was deposited approximately 10 or 12 days ago. That’s the single, biggest deposit in state history,” says Bolin “We will have to wait and see how that money can be used. It’s supposed to be used for COVID-related expenses. How that’s going to be defined is still up in the air.”
Bolin says federal rules will decide how the state can spend the money.
“Obviously it can be used for all the medical expenses and different things directly related to COVID,” he says. “But can it be used to replace lost revenues which I think everybody knows in South Dakota, is going to be significant. So that’s a big question.”
Bolin say some states are trying to stretch the rules.
“In Illinois, they want to use this money to stem their pension problems,” shares Bolin. There’s a lot of questions out there. States like Illinois that has this huge, huge problems in its pension system believe the money they’re going to get can be used for pensions. I don’t think anybody had anticipated that but some states are going to claim that.” He adds, “There’s a lot of questions that are going to have to be answered at the federal level on this issue.”
Governor Kristi Noem has said she will call the legislature back for a special session, possibly in June to deal with the expected revenue shortfall,
