South Dakota.

Gov. Walter D. Miller last week proposed a $598.7 million general fund budget for fiscal 1995, beginning July 1, 1994, that will not require any increases in taxes.

The proposed budget, which is $500,000 less than the current budget, includes:

* $199.3 million for local government aid;

* $105.6 million for higher education;

* And $34.6 million for the Legislature, court system, and constitutional officers.

In his budget message, Miller recommended that the Legislature transfer about $1.5 million out of the state's rainy day fund to pay for state matching funds needed to garner federal flood relief grants.

The state's rainy day fund contribution and federal funds will provide almost $8 million to local governments to rebuild damaged public facilities and $1 million to individuals and families, Miller said.

"What this is, is property tax relief for those counties most affected by the floods," Miller said.

About 39 counties were declared state or federal disaster areas after this summer's heavy rains and flooding of the Mississippi River and its tributaries.

Miller is also proposing that state lawmakers transfer an additional $1.6 million out of the rainy day fund to cover costs associated with a recent forest fire and prison disturbance.

Under state law, South Dakota is prohibited from issuing general obligation debt.

The Legislature convenes on Jan. 11, 1994.

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