Thursday, April 26, 2007

HOEVEN: LEGISLATURE PASSES PRIORITIES FOR GROWTH, EDUCATION,BROAD BASED PROPERTY TAX RELIEF, STRONG RESERVES

Important Bills Made Law for the Citizens of North Dakota

BISMARCK, N.D. – Gov. John Hoeven today said the Legislature has enacted the initiatives he laid out in his State of the State agenda at the beginning of the session: funding the priorities important to the people of North Dakota; passing broad based property tax relief; and setting aside a healthy reserve for the future.

“Last fall, we put forward a strong legislative agenda, and now we’re putting that agenda to work for the people of North Dakota,” Hoeven said.

“We’ve worked hard with legislators and the people of North Dakota to pass landmark legislation that will continue to create jobs, grow our economy, and improve the quality of life in our state for all,” Hoeven said. These include:

A historic education funding reform package

The largest tax relief package in the state’s history

A needs-based higher education budget that will help hold the line on tuition increases

An aggressive economic development package that will create more jobs and careers

A comprehensive energy package with a focus on renewable energy

A public safety package that strengthens the hand of law enforcement and protects communities

A package that takes care of people – seniors, children and people with disabilities
And we’ve done it all while setting aside a healthy reserve for the future.

LEGISLATIVE HIGHLIGHTS

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 the most significant reform in K-12 education funding in more than a generation, including:

A landmark $91 million funding package and a revised formula to achieve greater equity in K-12 Education funding.

A $3,250 per student payment in 2007-2008 and $3,325 in 2008-2009.

Statewide all-day kindergarten, increased funding for transportation, Career and Technical Education, Special Education, Regional Education Associations, and one-time funding for deferred maintenance.

PROPERTY TAX RELIEF: Passed a $118.6 million tax relief package, the largest in decades. The measure includes:

A 10 percent income tax credit against property taxes for homeowners, farmers, ranchers and commercial businesses.

Expanded Homestead Tax relief for seniors and people with disabilities.
Elimination of the marriage tax penalty for middle class couples.

HIGHER EDUCATION: For the first time ever, funds the needs-based budget of Higher Education with an increase of $89 million for the system’s operating budget, ongoing maintenance, capital projects and one-time technology costs, which will help hold the line on tuition increases. The Higher Education budget includes:

A $71 million increase in operations, ongoing maintenance and technology costs.

A $18 million increase for capital projects.

Increases for Student Financial Assistance Grants, the Professional Student Exchange Program, the Scholars Program, Native American Scholarships and the Education Incentive Programs.

In addition, BND has launched a new CollegeSave Program that provides an income tax deduction for higher education savings accounts.

ECONOMIC DEVELOPMENT: Creating jobs and opportunities is our top priority, and to do that, we secured programs like:

Centers of Excellence, with a $20 million appropriation for the next round of awards. These projects will continue to transform and expand North Dakota’s economy.
An $8.2 million workforce training package, including funding for Career and Technical Education, Interns and Workforce Talent Initiatives, Workforce 2020, and job placement technology for Job Service North Dakota to help locate and train the people we need to fill the jobs we’re creating.

A doubling of the budget for the North Dakota Trade Office to further expand overseas trade.

One of the most aggressive R&D investment tax credit programs in the nation, offering up to 25 percent of expenditures.

RENEWABLE ENERGY AND AGRICULTURE: We’ve passed a comprehensive $42 million Renewable Energy Plan, including programs aimed at supporting the 25 X 25 Initiative, the national goal of generating 25 percent of the nation’s energy from renewable sources, and doubling the state’s energy output from all sources by the year 2025.

$13.3 million for Renewable Energy Investment Programs, including Biofuels PACE and the Governor’s Ethanol Production incentive fund, giving counter-cyclical support for ethanol plants.

$7.9 million for Alternative Energy Development Programs, including a $3 million general fund appropriation, with authority to leverage an additional $17 million; a biomass demonstration project and biomass incentives; biomass and hemp research and education; and a sales and use tax exemption for materials used to construct co-generation power plants in conjunction with value added agriculture projects.
$7 million for agriculture greenhouse at NDSU.

$13 million in Investment Tax Credits, including Tradable Income Tax Credits and a 15 percent Income Tax Credit for the installation of geothermal, solar, wind energy devices to now include biomass equipment.

A $1 Million Interest Buy-Down Loan Program on new or expanding livestock or dairy operations; and a 30 percent Investment Tax Credit for livestock feeding and milking operations that use biofuels byproducts.

Wind - regulatory relief, tax treatment - A property tax reduction for wind generation units from 3 percent to 1.5 percent of assessed value.

Renewable Energy Promotion Programs, including an ethanol promotion label on blend pumps; incentives for the purchase of environmentally friendly paper and printing products by the state; and an energy policy commission to develop comprehensive energy policy for the state.

TRADITIONAL-RENEWABLE ENERGY PARTNERSHIPS AND INCENTIVES
· A new Pipeline Authority to assist private industry construct additional capacity to ship crude oil, natural gas, carbon dioxide ethanol, biodiesel and other energy products to market.

1 A strengthened Transmission Authority to encourage new wind and coal generation.

· A sales and use tax exemption for natural gas production or the construction/expansion of an oil refinery.

· New research dollars through Lignite Vision 21 and the Oil and Gas Research Fund to accelerate development of environmentally friendly production of electricity, natural gas, and alternative fuels, like wind, coal-to-liquid, coal gasification and carbon sequestration technologies.

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

Mandated minimum sentences for violent sexual criminals, even first time offenders, background checks for personnel in sensitive positions; and enhanced funding for GPS monitoring of offenders.

Enhanced funding for drug courts, the Robinson Recovery Center and other treatment programs to help recover lives.

A requirement for schools to establish a policy limiting registered sex offenders on school property and an increased penalty for possession of child pornography.

Created a DNA Database to track all felons, and expanded the Computer Forensics Program.

Created a credit freeze on disclosure of commercial credit rating information.
Nearly doubled the beds for civilly committed sex offenders at the State Hospital and increased funding for community-based sex offender treatment.

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

A $100 million general fund increase in the Department of Human Services budget to help those in need.

Expansion of medical coverage and quality services for children and seniors, including support for the continuum of care, and enhanced Medicaid funding for low income individuals, persons with disabilities and the elderly.

A Medicaid buy-in program to help families cover the cost of care for children with severe disabilities.

A state Prescription Drug Repository under the State Pharmacy Board to collect and distribute unused medications so that pharmacies and physicians can distribute them to those in need.

Expanded eligibility for Healthy Steps Children’s Health Insurance Program and medical assistance benefits to provide medical insurance coverage for 1,450 more children.

HONORING AND SERVING OUR MILITARY: We’ve said thank you to our military, with a number of measures, including:

Authorization and funding for the state’s share of a $21 million new Veterans Retirement Home in Lisbon.

An expanded Veterans Bonus Program.

Additional funding for tuition assistance for National Guard members.

A restriction on protests at military funerals and an increased death benefit for the families of soldiers killed in action.

TECHNOLOGY: We’re building our information technology infrastructure to help businesses and government become more profitable and efficient. Measures include:

Enhanced the Criminal Justice Information System’s Hub, which helps law enforcement agencies better protect the public by providing criminal information to our law enforcement officials via a secure information hub.

Funding for the GIS Hub, which benefits education, economic development, agriculture, energy, and technology.

Funding for the Medicaid Management Information System (MMIS).

Creation of a central database to manage animal tracking and disease containment.

WATER PROJECTS: We obtained funding for a number of state water projects, helping to secure the future growth of communities across North Dakota:

Authorized $200 million in state funding for the first phase of the Red River Valley Water Supply Project, $100 million in direct state funding and $100 million in MR&I Water Supply funds.

Secured additional funding for the Northwest Area Water Supply, Fargo Flood Control and the Southwest Pipeline project.

BUILDING A RESERVE FOR THE FUTURE: Our budget keeps expenditures in line with revenues, and sets aside a healthy reserve of $360 million. We’ve

Doubled the Budget Stabilization Fund to $200 million.

Retained $137 million in the Oil Trust Fund.

Established a $23 million Ending Fund Balance.

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