COVID funds comprise most of South Dakota’s $91.2M budget reserve increase
Governor Kristi Noem credits her administrations “open for business” approach for South Dakota’s financial position, with the State boasting reserves of $307.1 million, a $91.2 million increase from 2020. That $91.2 million increase is mostly attributed to Coronavirus Relief Fund federal aid in the COVID-19 Federal Fund, according to the report.
In 2020, the State received $1.25 billion in Coronavirus Relief Funds. Guidance for spending wasn’t issued until fiscal year 2021.
A total of nearly $800 million in coronavirus relief funding was paid to small businesses, cities and counties, health care facilities, education institutions, non-profit organizations, and for rental and mortgage assistance. An additional $184.6 million was spent within State organizations on services and supplies.
$1.6 million remains in the COVID-19 Federal Fund at the close of the 2021 fiscal year.
The American Rescue Plan Act provided $974.4 million in Coronavirus State Fiscal Recovery Funds and an additional $65.2 million in Coronavirus Local Fiscal Recovery Fund. A total of $487.2 million and $32.6 million were deposited in 2021 to each fund, respectively. The remainder of funding will be distributed in 2023. The State Legislature will consider budgeting and spending of these funds during the 2022 Legislative Session.
“I look forward to working with the legislature in the coming months to invest wisely for the future and continue our commitment to fiscal responsibility,” Gov. Noem says.
Other notable mentions include the South Dakota Retirement System is funded at 105.5%, and the State has maintained it’s AAA public issuer rating – the highest rating possible – from Standard and Poor, Fitch Ratings, and Moody.
CLICK HERE to read the full 2021 ACFR for South Dakota.