SIOUX FALLS, S.D. (AP) - The current year’s South Dakota state budget will not need to be overhauled because state revenues haven’t dropped as dramatically as had been feared due to the coronavirus pandemic, Gov. Kristi Noem said Thursday.
“We’re in pretty good shape as of today,” Noem said. “But we’re not out of the woods yet.”
The Republican governor said legislators won’t need to meet in a special session to adjust the budget before the end of the fiscal year on June 30. But she gave little assurance beyond that date, saying the long-term economic impact of the pandemic is yet to be seen.
Revenue is $5.6 million below what legislators predicted in February, and the state should be able to find wiggle room for that shortfall. But Noem said a cash squeeze could be felt for up to a year if the pandemic leads to the closure of more businesses and if there is a prolonged downturn in the economy.
The Department of Labor and Regulation on Thursday reported 1,435 new claims for unemployment benefits in the week ending May 30, a sharp drop from the 3,471 claims filed the previous week. According to the latest figures from May 23, 4.7% of all eligible employees in the state are on unemployment.
Noem is also sitting on $1.25 billion in federal relief funds to tackle the coronavirus. She has said she’s awaiting guidance from the federal government on how it can be spent, but that she would rather use it to make up lost revenue than create more government programs.
Meanwhile, health authorities reported two new deaths from COVID-19, bringing the state’s death toll to 64. One person who died was in their 60s, and the other was over the age of 80.
The state also reported 85 new cases of the virus and has recorded 5,247 cases so far. About 80% of those have recovered, but 86 people are currently hospitalized.
For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.
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