News Releases for January 2005
January 04, 2005
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Hoeven: "The State Of Our State Is Strong"
Cites Investments In Economic Dev., Education, Holding The Line On Taxes
BISMARCK, N.D. - Gov. John Hoeven today in his annual State of the State Address said North Dakota has created jobs, grown its economy and boosted wages, but the state needs to continue that effort and take it to the next level. To do that, North Dakota must invest in economic development and education to create more high-paying careers.
At the same time, Hoeven said, the state needs to hold the line on taxes while continuing to provide the services citizens need. Growing income in the state has meant reduced federal dollars for programs like Medicaid. Still, North Dakota has been able to maintain services, increase funding for education and reduce the tax burden on citizens by eliminating the tax on used farm equipment, implementing investment tax credits, and enhancing state revenue sharing with cities and counties. Hoeven proposes to do more by doubling the Homestead Tax Credit and by repealing the Unemployment Insurance offset to Social Security for working seniors.
Hoeven pointed to a host of indicators to show the state's economic growth, including a 7 percent increase in wages and more than 7,000 new jobs over the same quarter last year. The Governor credited good fiscal management and aggressive policies aimed at creating an excellent business climate for the increases. At the same time, he pointed to a $60 million reserve, a commitment to maintaining services for those in need and no new taxes.
"We fundamentally changed the way North Dakota pursued building our economy," Hoeven said. "We created a Department of Commerce to marshal all of our state's resources into one common effort and goal. We developed a statewide strategic plan to target key industries, and we brought together the public and private sectors at the local, state, and federal level to work together to create more and better paying jobs."
Hoeven also pointed to a simplified tax system, new tax incentives for business and a new marketing campaign highlighting the state's progressive business environment and exceptional workforce. Citing the importance of continuing to partner education and economic development, the Governor reaffirmed his commitment to increasing teacher compensation, expanding investments in economic development - including energy and agriculture -and holding the line on taxes.
At the same time, he complimented the positive agenda that emerged out of the Legislature's statewide Business Congress. It includes Centers of Excellence, increased investment tax credits for small businesses, an expanded North Dakota Trade Office and an Indian Business Development Office.
"Our commitment to education, Centers of Excellence, the Business Congress initiatives, a transmission authority, energy and agriculture is critical for North Dakota to create an environment of opportunity - to further grow and diversify our economy, to give our people the standard of living and quality of life they deserve," Hoeven said.
The full text of the Governor's address can be found at www.governor.nd.gov.
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