YANKTON, S.D. (WNAX) – A South Dakota legislative committee signed off on two percent increases for state employees, health care workers and state aid to education.

Representative Jean Hunhoff of Yankton, a member of the Joint Appropriations Committee, says they along with Governor Kristi Noem are waiting on rules for spending the $1.2 billion the state got in federal funding.

Hunhoff says the hope is to use some of those dollars as incentives.

Hunhoff says they hope the federal funds can be used to replace lost state revenue.

The committee will meet later this month for an update on tax revenues and federal rules.