South Dakota Approved for Education Stimulus Funds

Press Release

South Dakota Approved for Education Stimulus Funds

Gov. Mike Rounds announced Monday that South Dakota is among the first three states to be approved for state fiscal stabilization funds from the U.S. Department of Education.

Approval will allow South Dakota to receive $127,497,174 in federal stimulus money. The funds will be used to restore education funding and to balance the state budget for the remainder of the fiscal year ending June 30, and the next two fiscal years.

"The state budget office did a great job getting our application ready. The process was difficult because we were plowing ground that had never been broken, but we were confident that the information provided to the U.S. Education Department met all of its requirements," said Gov. Rounds. "Without timely receipt of these funds, South Dakota would have a budget shortfall in the current fiscal year."

The flexible stimulus funds, along with about $38 million in reductions from December's proposed budget, will make it possible to also balance the 2010 budget without the use of budget reserves, the Governor said.

The U.S. Department of Education also announced Monday that applications submitted by California and Illinois have been approved.

Jason Dilges, South Dakota Commissioner of Finance and Management, said nearly 82 percent of the fiscal stabilization funds, or $104,292,688, will be spent on K-12 schools and higher education in South Dakota. The remaining 18 percent, or $23,204,486, will be used for public safety/corrections programs, Dilges said.

The application, which was submitted April 9, will allow the state to initially receive about two-thirds of the funds. The rest will be provided later in the year.

K-12 schools in South Dakota will additionally receive $67.8 million in direct federal stimulus money under Part A of the Title 1 program ($34,650,000) and Part B of IDEA ($33,151,141). Part A of Title 1 helps fund schools with large concentrations of at-risk students from low-income families; Part B of IDEA helps fund the unique educational needs of students with disabilities.

South Dakota is expecting nearly $750 million in federal stimulus funds over three fiscal years for education, transportation and water projects, public safety, job creation and preservation, and health initiatives.

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