Governor Kristi Noem says revenue losses from the COVID-19 outbreak will present a huge hurdle for the state.
Noem says later this month the state will get federal money from a Congressional package.
However the governor says the state cannot use that money to replace lost revenue.
“Which is obviously how the state of South Dakota has been dramatically impacted,” Noem says. “We are a state of low taxes, low regulation. Our main funding source at the state level is sales tax, and every business has literally been shuttered just because of lack of economic activity. Very few dollars are flowing into the state.”
Noem says she’s anticipating federal guidance on how to use those dollars.
The governor wants some flexibility to keep vital state programs running.