LEGISLATORS COMPLETE HISTORIC SESSION

Policy Decisions Set State in Strong Financial, Economic Position

BISMARCK – Policy makers completed a historic legislative session today highlighted by $130 million in tax breaks, record investments in education and human services, measures to crack down on sexual predators, and dozens of initiatives to spur growth in agriculture, energy and other industries.

Senate Majority Leader Bob Stenehjem and House Majority Leader Rick Berg said they accomplished all three of their top goals:

1. Returning $130 million in tax relief to North Dakotans

2. Saving $200 million in the state's rainy day fund, giving North Dakota one of the largest budget reserves in the nation.

3. Delivering historic increases to the most vital government services including a $91 million increase to K-12 education; nearly $100 million more for programs helping poor people, seniors and the most vulnerable; and strategic investments in economic growth.

“The 2007 Legislative Session has been about making significant investments in vital government services that improve education for children, make our communities safer, and better serve seniors and our state’s most vulnerable people,” Berg said.

“By carving out more than $100 million for tax breaks and $200 million for investments in our rainy-day reserves, we have fixed North Dakota in a strategic financial and economic position for the future,” Stenehjem added.

In the final day, legislators approved a comprehensive tax relief package that returns 20 percent of the state’s ending fund balance to the taxpayers. All North Dakotans who pay property taxes on residential and agricultural land will receive a 10 percent tax credit on their 2007 and 2008 income taxes, totaling approximately $92 million in property tax relief.

A homestead tax credit for the elderly and disabled earning less than $17,500 will be expanded from $4.5 to $8.1 million. The marriage penalty on income tax is eliminated, returning $8.8 million to married taxpayers.

Policymakers also completed work on budgets for economic development and higher education. They doubled state support for the North Dakota Trade Office, added $4 million to the North Dakota Development Fund and invested more than $15 million in the Centers of Excellence program.

Legislators also passed legislation to establish the highest research and development tax credit rate in the nation, invested $4.7 million in workforce development initiatives and approved a comprehensive $40 million renewable energy package.

Higher education received $89 million more in general fund dollars for a total budget of $633 million. Leaders said the 23 percent increase in state funds is intended to hold the line on tuition increases, which legislators capped at 5 percent per year for the next two years.

“By investing heavily in both K-12 and higher education, the Legislature is telling the citizens that we value our young people and their education,” Stenehjem said. “We care deeply about the future of this state.”

Legislators began the session with a $500 million budget surplus, which both leaders said is a direct result of more than 10 years of diligent Republican leadership in the capitol.

“Responsible, consistent tax and regulatory policy has built the best business climate for growth, and this is the engine driving North Dakota’s economic renewal that includes 29,000 new jobs since 2000,” Berg said.

The final 2007-09 budget totals $6.5 billion, this includes $2.5 billion in general fund spending. Legislators worked on a total of 941 bills, rejecting $550 million in proposals for new programs or increased spending.

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