News Releases for April 2003
April 22, 2003
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Hoeven: Budget Priorities Need To Be Addressed Before Legislative Session Adjourns
Education, Senior Care, Solid Ending Fund Balance
BISMARCK, N.D. - Gov. John Hoeven today issued the following statement pertaining to priorities for the 2003-2005 state budget:
“At the beginning of the legislative session, we put forward a prudent, balanced budget. That budget:
- Cut the rate of growth in government spending in half - reducing the growth rate to about 2.3 percent a year, roughly the rate of inflation.
- Reduced spending so that two-thirds of state agencies spend less next biennium than they currently spend this biennium.
- Provided an ending fund balance of $18 million (after the latest projection) and kept revenues at the Bank of North Dakota, resulting in a safety margin available for the future of $25 million to $30 million.
“Our plan also sets clear priorities for the future, with the money to fund them. These include:
- Strong support for education and teacher compensation.
- Smart Growth economic development programs, such as internships, Centers of Excellence, venture capital funds and other initiatives that combine economic development with education to create higher paying jobs.
- Senior Care that gives seniors a choice through home and community-based care and prescription drugs, as well as strong support for Long Term Care.
“As the Legislature seeks to conclude the session, we have made progress in some areas, but key priorities still need to be addressed:
“K-12 Education -- The Legislature has provided funding close to the level proposed in our budget, but there has not been an adequate link made to increasing teacher compensation. We cannot simply go back to the old way of doing things.
“Senior Care -- The Legislature has provided strong funding for Long Term Care and developmentally disabled, which we support. These two areas received increased funding, but the overall budget for Human Services is hold even. To date, the Legislature has not provided adequately for prescription drugs and home and community-based care, a cost-effective and desirable option for seniors.
“Ending Fund Balance and Reserves - As stated earlier, our budget plan provides an ending fund balance of $18 million with at least $8 million still in the reserve fund at the Bank of North Dakota. This $26 million margin provides a safety reserve for the future. The Legislature, to be prudent, needs to provide a similar margin for future contingencies in the budget.
“There are other areas of concern in the budget where the Legislature has not completed a final plan. They include funding for technology, the Department of Corrections, higher education and state employee raises. We will follow these areas closely to make sure that they are cost-effective, but also meet the needs of North Dakota citizens.
“Throughout the legislative session, I have consistently urged that these important issues be addressed. I want to be clear: the Legislature should not adjourn until both the legislative branch and the executive branch have had an opportunity to address these priorities.”
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