PIERRE, S.D. (AP) — South Dakota Gov. Dennis Daugaard says the state's rainy day fund will cover flood prevention costs, so no spending cut or tax increase will be needed.

Daugaard says the state has spent about $10 million in the first two weeks of work to prevent flooding in Pierre, Fort Pierre and the Dakota Dunes area in southeastern South Dakota. He says the Federal Emergency Management Agency is likely to reimburse the state for about 75 percent of that cost.

The governor says the state has $107 million in reserves, which should be more than enough to cover the total cost of fighting the rising water on the Missouri River.

Daugaard says cities may face high bills for the flood-prevention effort, but FEMA will also reimburse them for much of the cost.

Copyright 2011 The Associated Press.