Bismarck Tribune - North Dakota News - Former North Dakota governor hears tips on budget

Former North Dakota governor hears tips on budget

Dec 12, 2006 - 09:43:54 CST

By DALE WETZEL
Associated Press Writer

North Dakotans have a number of suggestions for handling the state's ample budget surplus, including tax cuts and cash incentives for some of the state's small colleges to take up a different mission, former Gov. Ed Schafer says.

"We have a lot of money available, and it would be great if we could make one-time expenditures that would invest in the state of North Dakota, that would move our economy forward, that could make government more efficient and less costly," Schafer said.

The former Republican governor took part in a number of October public forums hosted by Americans for Prosperity, a Washington, D.C.-based group that advocates lower taxes and restrictions on government spending, to discuss ways to use the burgeoning surplus.

On Monday, Schafer and Duane Sand, the organization's state director, held news conferences in Bismarck and Fargo to discuss the comments collected at the forums, which Sand said were attended by 233 people.

Suggestions included cutting North Dakota's individual income tax rates, abolishing the state's corporate income tax, paying off state debt, and providing incentives for telecommunications companies to offer improved wireless telephone and high-speed data networks.

Forum participants suggested improving the state's pipeline and electrical transmission networks, which are used to export North Dakota's energy production, and offering some of North Dakota's small public colleges large grants to leave the state's university system and convert to another use.

"You could turn over the facilities to a business," Schafer said. "Maybe you could go out and give (a business) the dollars to move to your community."

Schafer and Sand said the proposals have been presented to state lawmakers and Gov. John Hoeven for review. They said they hoped the ideas will be considered in the 2007 Legislature, which begins Jan. 3.

"The good (budget) ideas don't come from ... the halls of the Capitol," Schafer said. "When I was there, they came from the streets in North Dakota."

Schafer served as governor from 1992 to 2000, when Hoeven succeeded him. He has declined subsequent entreaties to run for the U.S. Senate. Sand has been a Republican candidate for the U.S. Senate and House.

Hoeven said Monday that he was given the proposals a few days ago, and had not had time to review them in detail.

His legislative budget recommendations for the Legislature include a plan for offering property tax discounts to homeowners, farmers and ranchers, and businesses, and the governor said he believed property tax reductions should precede any attempts to cut state tax rates.

"The first thing we need to do is provide help with property tax relief," Hoeven said. "If we continue to build this economy like we are, hold the line on taxes, that bigger base will put us in position over time to reduce the rates."

When North Dakota's current budget period ends June 30, budget forecasters predict state government's budget surplus will approach $540 million.

Hoeven, in his budget recommendations to the Legislature last week, asked lawmakers to approve a general fund spending plan of $2.47 billion for the 2007-09 budget cycle, an increase of 24 percent over two years.

Even with that increase, the governor said, tax collections should be strong enough to leave a cushion of almost $413 million.

Public debate about the size of North Dakota's university system - it has six four-year schools and five two-year colleges - has quieted since voters, in November 1998, defeated a proposal to remove references to eight of the 11 colleges from the state constitution.

Opponents of the amendment said it could clear the way for the Legislature or the Board of Higher Education to close some of North Dakota's smaller colleges.

Schafer said North Dakota's per capita expenditures for its higher education system are among the nation's highest, but college officials say it's not enough.

"Those factors really mean that unless something structurally changes, we're never going to be able to put the kind of money in that our system demands," Schafer said.

News > State

Printer friendly version Former North Dakota governor hears tips on budget

Comments

Come on wrote on Dec 13, 2006 8:57 AM:

" The knee jerk response from "real guy" misses some important facts, not to mention some pretty core things that has build America. The FEMA and fed response to Katrina was a disaster primarily because those running the federal government were more interested in lining their own pockets (and saving oil supplies) than they were in ordinary American families. It hasn't always been this way and it doesn't have to be any more. We are not taxes too much, we just have leaders in the DC and ND administrations who are not running things for all of us. "

Practical wrote on Dec 13, 2006 12:57 AM:

" Oh yeh, cut taxes on out of state corporations so we can be like South Dakota. Do you realize that South Dakota is #49 in everything that we are 50th in? How about we do things like Minn. or Wisconson...where our kids are going for good paying jobs. "

Real Guy wrote on Dec 12, 2006 10:11 PM:

" Come on....the problem isn't that New Orleans didn't get enough money...more than $100 billion in Fed money alone! Look at the currupt, incompenent state and local officials. Mississippi was also hit hard and they aren't complaining. Obviously North Dakotans are taxed too much...how about some tax relief...cut the income tax and eliminate the corporate income tax so we can compete with South Dakota and other states "

Come on wrote on Dec 12, 2006 5:18 PM:

" Nothing like wanting to get yours and line your own pockets at the expense of others. This group is a greedy bunch who want government so small that then they can grab all the marbles. These guys are Grover Norquist who said conservatives will shrink government down to the size that you can drown it. Well, we got to see what that looks like in real life...New Orleans after Katrina. We are getting tired of this kind of hype. Schafer ought to know better. "

ryanm424 wrote on Dec 12, 2006 1:59 PM:

" Let's use it to make the world's biggest waterslide! "

lil'Nostradamus wrote on Dec 12, 2006 1:01 PM:

" ...and when it comes time to 'Pony-up' to the 'Trough', the Wizards at ITD will beseech the Legislature, ...Please...could you spare a few 'Mill'?... you know the wonderful job we've done with ConnectND. "

Max wrote on Dec 12, 2006 11:51 AM:

" NoDak John is correct. The census showed ND needs to close some of it's colleges as we have far too many and we are paying $700 more per college student and we are importing thousands of students is the reason why! The governor I believe makes $88,000 the school administration are making over $250,000 in 4 year colleges and $125,000 for 2 year colleges! Bismarck just gave Paul Johnson $20,000 raise in 2005 his salary is around $150,000 or around $10,000 less than our Senators and $60,000 more than the Governor! MN I believe passed a law that state officials could not make more than the Governor! "

NoDak John wrote on Dec 12, 2006 10:43 AM:

" I would suggest that the legislature at least look at the cause of that "windfall" of "excess" "income". One of the reasons for this unexpected tax revenue is due to the fact that our currency has inflated 40% in the last 48 months. Granted, that much inflation does cause government at all levels to have dramatic increases in tax revenue, but at what cost to the productivity and viability of industry in the State? What about the people? How are they fairing? Right now China and other countries are repudiating the "Dollar". The question: "What will this mean to North Dakota and its residents" should be at the top of the States priority list. As far as "higher education" is concerned, has anyone ever heard one of those institutions say that they didn't need a dramatic increase in funding? If they get State funding, then the president of that college should not be paid more than the Governor would be a nice starting requirement. "

Nostradamus wrote on Dec 12, 2006 7:11 AM:

" ...and the State is going to need that "cushion of 413 Million Dollars" to pay for the up and coming MMIS rewrite. Or as we in the know like to call it: 'ConnectND2' "

Post Your Own Comment

All online comments are limited to 350 words total.
Comments are reviewed for taste, tone and language before posting.
Some comments may be used in the Tribune's print edition.
We value and respect your privacy, but The Bismarck Tribune might
disclose certain information to governmental entities if served with subpoena.