In Case You Missed It …. Fargo Forum Editorial: Hoeven’s Budget Plan a Good Start

Forum editorial: Hoeven’s budget plan a good start

The Forum - 12/10/2006

Building a state budget when the revenue coffers are overflowing has to be more fun than scraping up funding in lean times. But it also can be more complicated and more risky.

North Dakota Gov. John Hoeven and his budget team have cobbled together what can be fairly called a “good times” budget because the state is looking at the largest surplus in its history – approaching $500 million in all reserve funds. Hoeven’s budget, which he presented to lawmakers last week, would leave nearly $413 million in cash and reserves when all expenditures he envisions are met during the next biennium. It’s an unprecedented cushion.

That set-aside is important because it goes to the heart of the latest budget buzzword afflicting some lawmakers: sustainability. Be careful about spending all that money on new programs, they warn, because when the economy slows, the new expenditures cannot be sustained.

Fair enough. But the warning assumes the governor’s budget tilts toward expenditures that could become albatrosses if the good times turn bad. However, an honest assessment of Hoeven’s proposals confirms his team has been careful to avoid committing the state to unsustainable programs.

A few highlights:

- When combined with a generous $117 million property tax relief plan (which would help keep local school taxes in check) the governor’s$80.5 million for equity and adequacy in schools totals nearly $200 million – a nice increase in the state’s share for public schools.

- Universities would receive$68 million more in the higher education operating budget. Another $20 million is directed to centers of excellence, which are on university campuses.

- Hoeven proposed a 4 percent per year increase in pay for state employees over the biennium.

- Human Services would get$71 million to cover the costs of a reduction in federal Medicaid funding, civil commitments for sex offenders, an inflationary increase for long-term and home- and community-based care, mental health and the needs of developmentally disabled North Dakotans.

There’s more, of course, and all of it will be sliced and diced, parsed and peeled by lawmakers. But thus far, reactions from most legislative leaders on both sides of the political aisle have been cautiously positive. Of course, it’s very early in the process; political posturing and substantive disagreements are guaranteed.

But overall, the governor has advanced an appropriately conservative budget that could have been a runaway expense train because there is so much money in the state’s pot. He didn’t let that happen. Instead, lawmakers have a responsible, pragmatic and responsive budget blueprint from which to work. It’s an excellent start.

Forum editorials represent the opinion of Forum management and the newspaper’s Editorial Board.

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