News Releases for March 2003
March 6, 2003
For further information, please Contact the Governor's Office
Hoeven Reaffirms Need To Fund Executive Budget Priorities
State Needs To Fund Education, Economic Development, Senior Care
North Dakota Outperforms the Region 
(276kb pdf)
Income Growth Also Outperforms (275kb pdf)
More Stable Industrial Production (276kb pdf)
Expansion Returns First To West and South (364kb pdf)
BISMARCK, N.D. - Gov. John Hoeven today issued the following statement in response to Economy.com’s new forecast for state revenues:
“Economy.com, the state’s independent financial consulting firm, has reaffirmed our projections for revenue growth in the next biennium, showing that our forecast is on track. In fact, the company’s data show an improvement in the revenue picture. Instead of a $10 million ending fund balance in 2005, they show an $18 million ending balance. The numbers also show a gain of $5 million for the current biennium in comparison with the November forecast.
“That means we are in a position to fund the important priorities we outlined in our executive budget in January - including funding for teacher compensation, economic development and programs for our seniors.
Education Is a Priority
“The Legislature reduced funding for education by $11.5 million before crossover, and now it needs to be restored to the level set in the executive budget to avoid losing the ground we gained over the current biennium. Moreover, we need to restore targeted teacher compensation to ensure that those dollars get into the classroom and to teachers.
“We made real progress two years ago in closing the pay gap for our teachers. We’ve shown that a thoughtful, targeted teacher compensation package can work to make North Dakota teacher salaries more competitive. Whether we do it through Foundation Aid or through a teacher compensation package, we need to provide continued support for our schools and get the dollars into the classroom to our teachers.”
Caring for Seniors
“Our budget also provides strong support for seniors, including increases for home and community based care, a prescription drug program and a continued commitment to long term care facilities. A legislative reduction of $16 million from the budget means a total loss of $40 million including federal matching dollars.
“We need to give our seniors a choice on care options, either to remain in their homes or be served in a nursing home. Our budget is cost effective, but most importantly, it gives our seniors control over their living arrangements. At the same time, our approach offers a prescription drug program to cover the most needy seniors with federal matching dollars and savings incurred from using a preferred list of less expensive medications.”
Economic Development and Smart Growth
“Our Smart Growth initiatives are moving forward. Internships, Centers of Excellence, ConnectND and our ethanol initiative have all found support among legislators. These investments in Smart Growth combine economic development, education and technology to create higher paying jobs to build our future in North Dakota. We must invest now to ensure that our state continues to grow.”
The Executive Budget Is Solid and Cost-Effective
“Our Executive Budget provides for all of these important investments in North Dakota’s future on a fiscally sound basis. We’ve cut the rate of growth in spending from 9.2 percent to 4.6 percent. Thirty of the state’s 45 agencies will spend fewer dollars in the next biennium than they do in the current biennium. In fact, North Dakota is one of only three states that has a balanced budget, which positions us well for growth in the future.
“To accomplish our goals for education and our seniors, we need an increase in the state’s tobacco tax. South Dakota is in the process of passing an increase of 30 cents a pack, and Wyoming has already increased its tax by 48 cents a pack. Twenty-two percent of North Dakotans smoke, but 35 percent of our youth use tobacco. Also, our state incurs $37 million every year in smoking-related Medicaid costs. Our proposed increase of 35 cents - one of the smallest in the country - will both discourage smoking among our young and reimburse the state for healthcare costs.
“The use of reserve funds is equally appropriate. Reserve funds have been set aside for specific purposes. We have proposed using dedicated water funds for water programs; higher education funds for higher education; and healthcare funds for healthcare. The state has always used cash reserves in the past to fund these vital public services and programs, and it is appropriate to use some of this money now to fund our major priorities - education and taking care of people.”
Continuing To Build Our Future in North Dakota
“Over the current biennium, we in North Dakota have made much progress in raising teacher compensation, promoting economic development and developing programs that provide for our seniors. In the new budget cycle, we have a rare opportunity to show that we can continue to be both fiscally responsible and responsive to our citizens’ needs.
“Now that we have an independent forecast of our future revenues, we need to ask ourselves some hard questions: Do North Dakotans really want to cut funding for a teacher salary increase? Do North Dakotans really want to cut programs that give our seniors a choice in care that includes quality nursing facilities, as well as home and community-based services?
“I believe the economic forecast we have just received and the people of North Dakota give us a clear answer to those questions: We can and we must fund these priorities.”
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