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Noem Says June Special Session Not Necessary At This Time

Governor Kristi Noem says a special session in June is unlikely.

That’s when the state will report April tax collections—when economic activity across the country slowed due to the COVID-19 pandemic.

Noem says she anticipates a serious budget shortfall because of the virus.

She says all options are on the table, including dipping into reserves.

“I know that that’s why the rainy-day fund is there, is for unforeseen circumstances. This is certainly one of those situations,” Noem says. “This is one of those situations. I wouldn’t take it off the table at this point, but my hope is that we could leave it intact.”

By law, the state cannot deficit spend.

Noem wants to use some of the $1.25 billion dollars from the federal government to back-fill revenue shortfalls.

The governor says the U.S. treasury department keeps changing its guidance on how to spend those dollars.