John Hoeven: Governor of North Dakota

2009 Legislative Summary

Previous Legislative Summaries: 2007, 2005, 2003, 2001

Hoeven: Legislature Funds Priorities, Passes Broad Tax Relief, Sets Aside Strong Reserves

PROPERTY TAX RELIEF: Passed a historic $400 million broad-based tax relief and reform package for the people of North Dakota, and achieved the long-sought goal of 70 percent state, 30 percent local funding for education.

• $295 million property tax relief to help homeowners, farmers, ranchers and commercial businesses by reducing the average state levy by 75 mills and capping the rate at 110 mills.
• $90 million in individual income tax relief to make sure all taxpayers share the benefit.
• $10 million in corporate income tax reductions to help stimulate North Dakota’s economy and make our state more competitive.
• An increase in the Homestead Tax Credit to nearly $10 million to help reduce the burden of taxes on seniors and people with disabilities.

K-12 EDUCATION FUNDING: Building on the recommendations of the Governor’s Commission on Education Improvement and the Governor’s budget recommendation, the Legislature passed far-reaching measures to assure adequacy for K-12 education.

• A record $1.3 billion K-12 education funding bill, with a nearly $290 million increase in state and federal funding. (The ongoing state funding increase is $120 million; ongoing federal funding increase is $20 million; and one-time fiscal stimulus funding is $150 million.)
• $825 million in per-pupil payments, including an increase of $100 million. At least 70 percent of all new operating dollars are dedicated to teacher compensation.
• $85 million in new funding for capital projects and deferred maintenance.
• The package also includes increased funding for mentorships, additional counselors; and tutors; and establishes an Early Childhood Learning Council.
• A revised curriculum, with enhanced requirements, to better prepare students for the jobs of the future.
• A new Indian Education Advisory Council to help Native students succeed.
• $2.3 million appropriation for a Longitudinal Data System to follow student progress from kindergarten to career in order to improve educational adequacy and meet the needs of the future workforce.

HIGHER EDUCATION: We’re continuing to build our universities and colleges to build our economy and train the workforce of the future.

• A total Higher Education budget of $795 million, with $161 million in additional funding to support students and families; build our campuses; and hold the line on tuition.
• The bill includes more than $40 million package to make Higher Education more affordable, including more than $32 million for financial aid. Within the $40 million is nearly $20 million for ACT-ND, a needs-based tuition-assistance program; $12 million for merit based scholarships and Science, Technology, Engineering and Mathematics (STEM) grants; and $8 million for tuition control.
• A nearly $75 million increase for the campus’s ongoing operations and program costs.
• Nearly $100 million in one-time funding for capital projects and deferred maintenance on our campuses, including a new Education Building at UND; a new library at DSU; renovation of Minard Hall at NDSU and Swain Hall at MSU; a new Career and Technology Center at WSC; a new wind project and wind energy training program at Lake Region College; a new center for applied energy research at Bismarck State College; and more.

INFRASTRUCTURE - TRANSPORTATION AND WATER: Building a stronger, more competitive North Dakota with landmark legislation for infrastructure enhancements as well as immediate aid to cities, counties and townships for flood recovery.

• A comprehensive Transportation bill that will take us from about $903 million in the current biennium to about $1.35 billion in the next. Combine that with the estimated $150 million in federal disaster aid, and we will be devoting about $1.5 billion to transportation, which is almost $600 million more to rebuild our roads and help cities, counties and townships recover from statewide flooding.
• A revised allocation formula for the Highway Tax Distribution Fund to provide long-term allocations counties, townships, and transit systems.
• A $30 million increase in state aid to Oil Producing Counties owing to removal of caps on the oil tax distribution and an increase in the transfer of state revenues to the Oil and Gas Impact Grant Fund.
• A $75 million commitment in funding for a Fargo area permanent flood control project.
• $12 million from stimulus funding for the Southwest Area Pipeline Project.

ECONOMIC DEVELOPMENT, ENERGY AND AGRICULTURE:: We’ve worked to create a top-notch business climate and real opportunities for our people by substantially reducing taxes and creating strong incentives for our targeted industries, including agriculture and energy. We continue to make North Dakota a great place for businesses to start or expand.

• A $20 million appropriation for the next round of Centers of Excellence awards. The $39 million in Centers of Excellence funding so far has produced nearly $170 million in total economic impact to date. These projects will continue to transform and expand North Dakota’s economy.
• A 50 percent increase in funding for Operation Intern, and renewed funding for Workforce Enhancement Grants, as well increased funding for entrepreneurship programs.
• Increased funding for the N.D. Trade Office, which has helped to grow our exports by 35 percent last year, and more than 225 percent since 2000.
• An extended Property Tax Reduction and Sales and Use Tax Exemption for wind power, as well as an extended Income Tax Credit for the installation of any Renewable Energy Device, including geothermal, solar, wind and biomass.
• A new $2 million grant program for installation of Blender Pumps at motor fuel retailers to promote expanded use of ethanol and biodiesel.
• $3 million boos for the Renewable Energy Fund.
• $1 million in Ag Pace for disaster relief for ranchers.
• $17.6 million for agriculture research infrastructure, including $11.4 million for Phase II of the NDSU Research Greenhouse, $3.6 million for a beef research facility, and $2.9 million for improvements to the Research Extension Centers at Minot, Williston, Dickinson and Langdon.
• A landmark law to regulate Geological Storage of Carbon Dioxide, the first in the nation. It establishes a statutory framework for the regulation of long-term geologic storage of carbon dioxide by the North Dakota Industrial Commission.
• A new law to establish Ownership of Subsurface Pore Space for carbon sequestration.
• A carbon credit incentive against coal conversion privilege taxes to help facilities achieve a required level of carbon dioxide capture, and a new tax incentive for cleaner-burning beneficiated coal.
• A streamlined 7 percent oil extraction tax option to promote exploration and development in the Bakken Reserve.

LAW ENFORCEMENT: Building on our position of leadership as one of the safest states in the country, the Legislature authorized a number of measures to help ensure public safety, including:

• A $64 million appropriation to renovate and expand the State Prison in Bismarck.
• Mandatory criminal background checks for nearly 5,000 childcare workers.
• A statewide 24/7 Sobriety Program under the Attorney General to keep help combat alcohol abuse and make the roads safer.

CARING FOR PEOPLE AND QUALITY OF LIFE:: To improve the quality of life for all in North Dakota, we secured funding to help seniors, children, and people with disabilities:

• A total of almost $2.3 billion, which is $380 million increase in the Department of Human Services budget to help seniors, children and persons with disabilities.
• A $118 million inflationary increase of 6 percent per year, along with additional salary dollars, to help our hospitals, nursing homes, physicians, DD providers, basic care providers and qualified service providers.
• To advance quality healthcare in North Dakota, we provided rebasing for health service providers, which means increased medical payments to hospitals, physicians, dentists, chiropractors and ambulance service providers.
• A funding increase of more than $62 million for home and community based care to help our seniors live more independently.
• A more than $5 million loan and grant program for childcare workforce development, quality improvement and technical assistance to establish and expand safe childcare facilities in North Dakota.
• Expanded eligibility for SCHIP from 150 to 160 percent net of the federal poverty level, as well as additional funding for outreach to cover more children.
• A $19 million increase in funding for injured workers through Workforce Safety and Insurance.
• A salary increase of 5 percent the first and 5 percent the second year for North Dakota state employees, as well as a $16 million equity fund to help retain and attract quality public employees for the people of North Dakota.
• A $52 million expansion of the North Dakota Heritage Center, including $40 million in state General Funds and $12 million in private match.
• A new $15 million grandstand for the North Dakota State Fair in Minot.

HONORING OUR MILITARY:: We say thank you to our military in truly tangible ways.

• A $32 million appropriation for construction of a new and modern Veterans Home in Lisbon.
• An enhanced Veterans Bonus Program that removes the current caps for both domestic and overseas service, and compensates for actual time served.
• A Military Service Employer Salary Income Tax Credit that provides a corporate and individual income tax credit of up to $1,000 for salaries and certain benefits paid by an employer to a deployed employee.
• A $1.4 million expansion of the Reintegration Program that supports all military service members and their families.
• A Job Protection Measure for Volunteer Emergency Responders that provides job and wage protection for up to twenty days for National Guard members who volunteer to assist during disasters.
• New Gold Star License Plates for surviving family members of soldiers and airmen who died on active duty during a time of conflict.

BUILDING A RESERVE FOR THE FUTURE:: Our budget keeps expenditures in line with revenues, does not borrow, and sets aside a healthy reserve total of more than $700 million, including

Top

Back