South Dakota To Receive Medicaid and Education Funds

Press Release

Gov. Mike Rounds announced today that South Dakota's plan for allocating additional one-time federal Medicaid and education funds has been approved.

The state was notified late Wednesday that it will receive the funds.

Approval will provide the state with $20.9 million for the Medicaid program and $26.3 million in one-time money under the education section of the recently passed federal law authorizing the funds.

The one-time education funds will be used in the current FY2011 state aid to local schools formula in lieu of state general funds. The freed-up general funds will be fully committed this fiscal year and will spill over into FY2012 for K-12 schools.

Gov. Rounds said the $47.2 million in one-time federal funds will help reduce possible budget cuts in FY2012.

"We are pleased that we could meet the criteria necessary to receive the education funds," the Governor said. "Until we received federal guidance, we were unsure if the state would qualify for the money. These additional federal funds for education and Medicaid will help stabilize next year's budget, minimize the use of state reserves and help avoid an increase in local property taxes."

South Dakota is one of the first states in the nation to gain federal approval of its plans for the extra funds.

"Initially, we were concerned about the strings that might be attached to the additional federal aid. However, we want to do everything we can to minimize the negative impacts of the national recession on education funding and the services we provide to the poor and elderly through our Medicaid program," Gov. Rounds said.

"Members of my staff have worked diligently with the U.S. Department of Education over the past two weeks on the plan South Dakota submitted for utilizing the education funds," the Governor added. "At the conclusion of a conference call yesterday, we were notified that our plan was approved in its entirety."

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