Bismarck Tribune - Bismarck News - Projected N.D. budget surplus soars over $1B

Projected N.D. budget surplus soars over $1B

Aug 05, 2008 - 04:06:04 CDT

By DALE WETZEL
Associated Press Writer

North Dakota's swelling budget surplus is expected to soar above $1.2 billion by June, new estimates of state tax collections say. The news touched off a round of proposals about what the Legislature should do with the money, with Gov. John Hoeven suggesting he may support cutting the state income tax.

Democratic governor candidate Tim Mathern, who is opposing the Republican incumbent's bid for re-election, said Monday the bulging surplus was a sign of mismanagement by the Legislature's majority Republicans.

Rather than allowing money "to accumulate in a bank vault," the state could be putting it toward education, health care and public works along with tax reductions, he said.

"This is a clear indicator that we haven't made the investments that should have been made, and the Legislature needs to correct that," Mathern said in an interview. "We have to get some priorities in order. We can make some investment in public infrastructure. We can make some investments in health care."

Both Hoeven and Mathern already have suggested new spending initiatives during the campaign, including increased aid to schools, money for local property tax cuts and greatly expanded aid programs for North Dakota college students.

Until Monday, lawmakers and state officials were anticipating a budget surplus of more than $700 million when the 2009 Legislature begins its session in January.

The new Office of Management and Budget forecast, which was prepared to use in drafting Hoeven's budget recommendations for lawmakers, pushed the surplus estimate close to $1.3 billion. North Dakota's current two-year general fund budget is $2.46 billion.

The state's general fund treasury, which is financed mostly by taxes on income, sales, energy, corporations, tobacco and alcohol, should have a surplus of $453.9 million when the current state budget period ends June 30, the new forecast says.

A fund that is used for surplus oil tax collections should have $622.9 million by June 30, the forecast says. A state "rainy day" fund already has a stash of $200 million, which pushes the estimated surplus to $1.28 billion by June 30.

The estimates also forecast continued strong growth in tax collections during North Dakota's 2009-2011 budget period, which begins July 1. General fund revenues are expected to rise 8 percent, to $2.73 billion during those two years, the forecast says.

The estimates are compiled by a national consulting firm, Economy.com, and vetted by the state budget office, the Tax Department and an advisory group of legislators and officials who are familiar with the farming and energy elements of North Dakota's economy.

Hoeven has proposed a $300 million education and property tax plan for the 2009 Legislature, which would increase state spending on local schools by $100 million and provide $200 million to compensate for local school district cuts in their property tax rates.

On Monday, Hoeven suggested the new revenue forecast also leaves room for a state income tax cut, although he offered no specifics.

"We're going to be able to do more with tax relief as a result of our growing revenues ... and still emphasize investment in the things that will grow the state, so that we can keep this going," Hoeven said. "It's taken a lot of time and work to build to this level, and we need to continue to build the economy."

An initiated measure likely to be on North Dakota's November ballot would reduce state individual income tax rates by 50 percent and corporate rates by 15 percent.

A separate ballot proposal seeks to cap the amount of oil tax money the North Dakota Legislature may easily spend. Instead, much of the surplus would go into a trust fund.

Rep. Rick Berg, R-Fargo, the House majority leader, and his Senate counterpart, Bob Stenehjem, R-Bismarck, said legislative enthusiasm for new spending should not outrun the economy's ability to produce ongoing tax revenue.

"I hope people don't lose a lot of sleep staying awake at night, trying to figure out how to spend it all," Stenehjem said.

Said Berg: "North Dakota is a commodity-based economy, and we have windfalls from the strong ag economy and windfalls from energy today. Commodities tend to go up and tend to go down, and we don't want to be in a position where we can't weather a downturn in commodity prices."

Pam Sharp, director of North Dakota's Office of Management and Budget, said the state's new revenue estimates assume North Dakota oil prices will average almost $98 a barrel until July 1, and almost $85 a barrel through June 30, 2010.

The forecast includes a decline during the following 12 months, with an average of $75 per barrel.

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Comments

yo wrote on Dec 31, 2008 10:26 PM:

" Teacher are not over worked... they get 3 months of in the summer.... "

Job wrote on Aug 12, 2008 1:27 PM:

" DuWayne Hendrickson- no vote from me. Politicians are good at blaming people and not looking at themselves and what they are doing. "

Rick wrote on Aug 12, 2008 12:47 PM:

" Hey, Make Me RIch:

1.2Billion would only make 1200 people millionaires. How do we decide, who gets it? "

rph wrote on Aug 12, 2008 7:28 AM:

" I would rather see the state repeal the 6% state income tax than the income tax. Repealing the state income tax would benefits all ND. Not just those paying taxes. It would benefit rich and poor alike, business owners and customers. Giving the money to the reservation or education would only benefit those groups. Repealing the state sales tax would assist in economic development because people would have 6% more to spend. Let's spread this money around to all ND, not just a select group. State tax department would still monitor the sales in the state as they currently do and then bill the trust fund for the amount owed. "

DuWayne Hendrickson wrote on Aug 11, 2008 7:55 PM:

" To Job::: To answer your question, No I would not resign..It will take a combination of citizens that want this and a Governor who can communicate with the legislature to expess how much the citizens want it. I will not be one to stand silently by and let things go as they have been.The citizens will also have to convey that message to thier own representatives.Otherwise their is not a chance this would pass.I feel that with the extra $s that this plan would put into ND property owners hands would benefit ND in many ways. I may be wrong though since it hasnt been suggested by any of the past administrations in ND. DuWayne Hendrickson Independent candidate for Governor 2008 "

Bis Prof wrote on Aug 11, 2008 5:50 PM:

" I'm glad somebody "gets" me! ;-) "

Thanks Bis Prof wrote on Aug 11, 2008 1:51 PM:

" I try with all my might to resist the urge to read these comments, as I often cringe at the lack of logic and complete incoherence. I often break down and read them anyway, though. I just wanted to thank you for at least giving me a chuckle for once rather than leaving me with a feeling of disgust and disillusionment over the state of our society and its collective intellect (or lack thereof). It's nice to see someone using facts to make logical arguments.

Also, kudos on continuing discussion for so long without losing your cool, I typically resort to ad hominem within 10 minutes, followed by throwing my hands up in exasperation. "

JOb wrote on Aug 10, 2008 10:44 PM:

" The oil boom will eventually go away... Will the taxes follow? lower price for oil would mean lower tax revenue. West Dakota you are you sure about that? "

WEST DAKOTA wrote on Aug 10, 2008 5:34 PM:

" I think we should split the state in half, Dickinson, Bowman, Williston and maybe will let minot come with us nobody has ever gave two cents about us before now there's all this money and we out west know where is coming from let fargo and grand forks fend for themselfs they have made us do it for years "

sunshine wrote on Aug 10, 2008 11:51 AM:

" Do you people really believe this surplus is from taxes? If that's the case, I have a bridge I need to sell........ Again, the surplus is from the oil industry. We need money to come back into the oil impacted counties to help with demands from oil drilling. If we can't maintain our roads and bridges, and the oil fields shut down-what do you think will happen to your "precious" surplus of dollars? Oh, that's right, it's coming from taxes that the average citizen pays-so, we should keep rolling in money, right? I think ND needs a reality check. Let's have the Tribune and every paper in ND for that matter, break down where the dollars are coming from exactly. It's government money now, so there shouldn't be any secrets about what is coming in, where it's coming from and where it is being spent, right?
Someone at the capital should be keeping track of this, and every ND has a right to know. However, being from a oil impacted county, we absolutely need to get dollars back to maintain roads and improve bridges. The oil companies are paying taxes and I believe the funds should be used where they are generated. You know, ND isn't the only place where oil is found in the US. Ever heard of, "don't bite the hand that feeds you"? "

LJK wrote on Aug 9, 2008 10:21 AM:

" ck- Teacher's salaries are dependent on the district in which they teach. Some have a decent compensation, others do not. My sister is a teacher with a Masters in Education and also has a Masters in Clinical Psychology (not a bad background for dealing with kids and their parents). She quickly realized that pay in North Dakota was lacking and teaches out of state, where she has won several teaching awards. She would have been a great asset to any school district in N.D., but just couldn't accept the salary. Also, my Father in law is an attorney who handles contract negotiations for teacher's unions in our area, where they are also paid in line with their education. So, the extremely low pay scale doesn't exist everywhere. "

ck wrote on Aug 9, 2008 9:20 AM:

" Why is it all I hear from teachers is how little they make. They don't have any understanding of the salary, when they choose the profession? I am not saying they shouldn't be entitled to raises, but there is also other state employees who deserves more money too. "

Job wrote on Aug 9, 2008 12:15 AM:

" Bis Prof. So I can assume the posts you have submited are irelevant since you have no idea other then what the city says is the average a teacher actually makes? I take it you don't know the other incentives a public teacher makes? (yes or no qestion there) And millions yea right I almost believe you. Average salary for a prof in the US is $98,000 a year some how you are the special one and can make millions, by the way that was an average chances are you make less then that..I just took off in my space ship and parked on mars..I hope you have a good vacation before school starts. To me sounds like you are still living the college life time to come back to earth. "

Bis Prof wrote on Aug 8, 2008 8:29 PM:

" Job: I'm perfectly happy. I am not a k-12 teacher. I was sticking up for them. Sorry it took so long to get back to you, but as a college professor, I have used the millions I milk from this cash cow state to purchase a yacht so that during the summers I can relax. My wireless was out of range until I arrived in Puerto Vallarta. "

Make me Rich wrote on Aug 8, 2008 5:35 PM:

" Why not put more into education and then lessen each homeowners taxes. Why can't the government kick in more instead of leaving it all up to us all the time.
One more thought for the road, there is roughly 600,000 residents in ND give each 1 million dollars!!! Then no more government program like Medicaid, Food Stamps etc. and then we would save money there and then we could say ND has only millionaires that live there!!! Love IT!! They would still have a surplus after that even. "

LJK wrote on Aug 8, 2008 5:10 PM:

" The school system in Bismarck is no longer that great. There are so many better systems in the country, and no excuse for it with the current tax rates. Also, "going on to college" is vague. Are you talking community college? In-state colleges in ND or top tier colleges? The high schools in Bismarck could be offering many more AP courses than they do- and that is directly correlated to how the schools are funded. My kids are in Massachusetts, where academics are fiercely competitive. Our money is well spent on the students, since our district is one of the best in the country. You get what you pay for. There's no reason Bismarck couldn't be in the same league. I was born and raised in ND and pay property taxes in Bismarck, since I have a home there and I wish it were being put to better use. "

Law wrote on Aug 8, 2008 12:46 PM:

" LJK, spending more money does not guarantee a better education. Bismarck has a great school system with advanced classes and a high rate of kids going on to college. If your school system is spending that much you should take a look at where their spending your money. Which school district are you in? Is it in ND? "

Job wrote on Aug 8, 2008 12:36 PM:

" Bis Prof. why don't you get a new job if you don't like your pay or your hours are to long? Seems like you are not happy. Why not change this? Maybe if teachers left there job because of the poor pay they would start to realize something is not right. Not that I am saying teachers are underpaid or overpaid I am not familiar with this. oh and you you can comment on my punctuation and grammer to. I have better things to do then verify and make sure everything is correct in a blog that somebody I really could care less about is reading. As a teacher I am sure you have plenty of time to read over your blogs why you enjoy your summer off. "

Job wrote on Aug 8, 2008 12:28 PM:

" DuWayne Hendrickson ...would you resign if you could not accomplish this? I would likt to hold politicians acountable for what they say. "

DuWayne Hendrickson wrote on Aug 8, 2008 10:35 AM:

" As a Governor candidate this would be what I would try to have the legislature consider and pass.I believe that my idea would be good for North Dakota in a couple different ways. First off I would go for 70-100% state school funding. I prefer the 100% and feel that with my argument that 100% would pass. This would at least eliminate the school portion of our property tax.IF ND continues to prosper, and grow, which is in my vision for ND we can possibly eliminate all property tax. The second benefit from doing this is the 100s of millions of $ it puts in ND citizens hands for them to spend in ND which creates about a 4 billion $ economic impact for ND each year.This would affect many areas of commerce in ND and continue to make our state grow. If you want to know more about what I am for in ND check out the dakotapolitics.com page.You can email me at duwayneh@ndak.net if you have any questions or ideas that you have for a better ND. "

LJK wrote on Aug 8, 2008 9:03 AM:

" Not when better school systems are spending $10,000 to 12,000 per student (like the district that my kids are attending). That will end up putting ND students at a disadvantage when competing against those other students during the college application process. Fewer core and AP courses for high schools, lower grade schools lacking as well...it won't do the kids any favors to take on a "it's good enough" attitude. "

Law wrote on Aug 8, 2008 8:01 AM:

" I think $ 7000 (BPS stats) per student is plenty of spending. "

LJK wrote on Aug 7, 2008 6:10 PM:

" Ahhhh. "If you don't like it, leave"...always the fall back solution to any problem and it takes so much less effort than actually fixing the situation. The trouble is, not only are teachers getting paid less in ND than most other states, there is also less being spent per student. And what that really means is less of an investment in students and their education. While money alone doesn't make for a better school system, more funding can give a competitive advantage in the form of better programs and teachers. I guess if parents don't like it, then they are free to move their families to other states as well. "

Bis Prof wrote on Aug 7, 2008 5:23 PM:

" To'to bis prof:
Your post is poorly worded, poorly punctuated, and rambles from point to point. Further, just because I argue that teachers here deserve better does not mean I should be told to leave because you "feel" that you understand me. You assume too much.
Respectfully,

BP "

to bis prof wrote on Aug 7, 2008 4:40 PM:

" First, it sounds like you are very unhappy and maybe should leave state, before you bring your bad attitude to the classroom. Second, all of North Dakota is poor, half the the schools in Bismarck/Mandan qualify because a certain percentage of their students are low income. I am not trying to bash teachers, I truely respect what is done, but look at what other jobs are paying in town. Don't try to make others believe that you are the lowest on the foodchain. I can honestly say for all of my years in school and higher education, not many teachers care anymore and just follow the same old curriculum every year. "

LJK wrote on Aug 7, 2008 4:20 PM:

" Maybe the low pay for teachers is simply a reflection of how people value the Bismarck school system in general. I read all these articles touting how wonderful the schools are doing, but then after visiting sites that rank and compare schools nationally, like "greatschools.com", it makes me wonder. There are elementary schools bringing in ratings as low as a 3 out of 10. The average for a many of them is running around 6 out of 10. That's pitiful. "

Deb wrote on Aug 7, 2008 3:56 PM:

" disgruntled tax payer: read my post previous to the one I wrote to you --

the property taxes are outrageous - and they are high because local government has to make up for the funding they are not receiving from the state. Your state income tax isn't the problem - the legislature not spending the money properly is the problem.

Elect a democrat to get lower property taxes & equitable funding for education. "

Disgruntled taxpayer wrote on Aug 7, 2008 3:43 PM:

" To Deb: you obviously don't pay property taxes to make such a statement! "

MamaMia wrote on Aug 7, 2008 3:37 PM:

" I need to clarify one statement here: "Teachers get their summers off". No, they don't "get" their summers off, they don't have a job offered to them in the summer (most teachers, that is). Teachers are paid for 180 days of teaching --give a day or two. Their salary is prorated for 180 days. They are only paid for 3 holidays. They are not paid for "forced" vacations like the time at Christmas, after Thanksgiving, etc. Nor are they paid for the summer. Believe me, many, many teachers are like I am: If someone wants to offer me a summer teaching position (i.e. throwing money at me) I will take it. Beats painting houses or working at the mall. "

Deb wrote on Aug 7, 2008 3:28 PM:

" Disgruntled Taxpayer:

we're not being overtaxed - it's the Republican super-majority in your legislature that doesn't know how to correctly spend the funds that we are collecting. If you want more money spent on education and lowered property taxes - vote Democratic at the next election. "

Deb wrote on Aug 7, 2008 3:25 PM:

" There is a problem with the info that "taxpayer" is putting out.

Yes, property taxes are set by local municipalities, but they are set in immediate reaction to the lack of funding given by state collected income taxes. The major player is the education funding formula. When the state funded 70% of education, property taxes were relatively low. Now, with the Republican super-majority in the legislature, the state has fallen back to only funding 30-40% of education. The local municipalities have to counter that by charging higher property taxes to make up the difference.

If you vote YES on the measure that will give you back 50% of your income taxes - look for your propoerty taxes to skyrocket. If you want your property taxes to lower, vote NO and also elect the Democrats running in your district - they are committed to increasing state funding for education which will have an immediate impact on your property taxes.

Also - vote NO on permanent oil tax trust fund - this is taking money out of the state coffers virtually FOREVER. There is NO need for this trust fund. It is being set up so that 75% of the legislature would have to vote to use the funds - that will never happen. "

Bis Prof wrote on Aug 7, 2008 3:16 PM:

" I'll answer my own question. I went to the BPS salary site. If a teacher begins work already having an EDD and puts in 23 years, he or she will be up to 62,000 per year. Hmmmm. I wonder how many terminal degree holders we have who have also put in 23 years of service? "

Bis Prof wrote on Aug 7, 2008 3:07 PM:

" Agree With Law:

Don't forget, you have 6 to 8 sections of students, 30 students per section, and you have to grade and return homework withing days which means you will be working all day and all night. By the time 9 months is up you have worked as many hours as if you had worked 12 months. And don't forget, if sweet little Timmy doesn't like his grade then you will have to deal with mom and dad, who also involve administration. Next thing you know, you're asking yourself why you've sacrificed your life for a low wage job in which you are unappreciated for trying to build educated citizens. I don't know about the loan forgiveness. Oh that's right, you have to work 5 years in a major city's poorest and most dangerous district. Go ahead, sign up, you'll love it! "

Bis Prof wrote on Aug 7, 2008 2:59 PM:

" Law, again you make bold statements with no evidential support. Could you please direct us to where we can find the pay rates for high school and grade school teachers? I would certainly be interested to find one of our local k-12 teachers who makes 62,000 per year. "

LJK wrote on Aug 7, 2008 2:51 PM:

" Teachers cap out under $70,000??? Is that with a Master's degree or just a Bachelor's? Hard to believe that a starting salary of $38,000 for a college graduate who is performing one of the most valueable services in the state is considered acceptable. Priorities, people. No wonder good teachers are leaving for other states that appreciate them (and don't give me the cost of living speech, the disparity between Bismarck and other cities doesn't make up for the difference in salary). I had several excellent teachers leave Century HS while I was there, bound for better paying locations. "

DISGRUNTLED TAXPAYER wrote on Aug 7, 2008 1:46 PM:

" This huge surplus is a clear indication that we have been overtaxed. Most of us have no problem with a surplus, but this is ridiculous. I hear from people all over the nation that our taxes are extremely high even compared with some eastern states. I also think we need to invest in our youths education. I personally like to see our young people doing something with their lives rather than walking the streets looking for trouble. I will be paying attention to the candidates at election time. I think we need to clean house. The politicians are not really being specific about what they intend to do with the tax situation. I want to know what their plan of action is. "

agree with law wrote on Aug 7, 2008 11:39 AM:

" I agree with Law, Bismarck teachers are paid well compared to other jobs in town. We all want more money, but come on, that is higher that most all state jobs and you get your summers off. Makes me want to go back and be a teacher, plus I could get a good chunk of my loans forgiven. "

Law wrote on Aug 7, 2008 8:22 AM:

" Bis Prof, starting salary for teachers in Bismarck is 32800, and goes up to 62800. Yes in other smaller districts the teachers are underpaid especially new teachers, but not in Bismarck. "

Edward wrote on Aug 7, 2008 8:14 AM:

" Just send a check to each man, woman, and child for about $1,900. They know how to spend the money better than any self serving politician. "

Sideline wrote on Aug 7, 2008 7:20 AM:

" Bis Prof' posted - "...you make many bold statements yet present no facts. For everyone else, educators have been underpaid for years now so..."

Educators are critical, no doubt. But the salary comparisons I usually see are between North Dakota salaries and other states. Surprise! Almost every profession makes less in North Dakota. Of course, people choose to live here for other reasons, too. Perhaps if our small state didn't have a dozen public colleges and universities with duplicate administrations and facilites as a starter. But I digress from the topic of the forum. "

Bis Prof wrote on Aug 7, 2008 1:56 AM:

" Law, are you a Bismarck school teacher? If not, I suggest you speak with one. Further, you make many bold statements yet present no facts. For everyone else, educators have been underpaid for years now so don't you tell me how you are so bored with hearing about it. "

PoeticJustice wrote on Aug 7, 2008 12:58 AM:

" You call that a SURPLUS?!

U.S. auditors are reporting that due to soaring oil revenues, Iraq now has a massive budget surplus of 80 BILLION dollars, Yes, 80 Billion with a "B." Now THAT'S a surplus! And as we slog through mid-year facing the largest deficit in U.S. history, we continue sending the tax payer's money to Baghdad at the rate of $500,000 every minute . . . That's $720 Million a day.

Soon all the third world nations are going to claim to have WMD and provoke an attack just to get a piece of that kind of pay-off. "

rs wrote on Aug 6, 2008 10:07 PM:

" pretty sure that the govenor can override these commissioners and lower property taxes "

Economic Conservative wrote on Aug 6, 2008 5:16 PM:

" OK, I have amused myself enough watching this blog, so here's my two cents: taxation is governed by Chapter 57 of the Century Code, which we all know is controlled by the State legislature, which as we all know is presently controlled by the GOP. An interesting note, the GOP in the rest of this contry is dedicated to cutting taxes and welfare programs, but here in ND the GOP is nothing but a bunch of tax and spend good old boys, from Hoeven to Berg to Stenjem, so we can expect nothing for the future except more social, farm, and corporate welfare from our legislature unless these good old boys are voted out of the Capital. Yes, County Commissioners set the property tax rates, but not without the authority granted them by the Century Code. The question for me still is, if we, little old North Dakota, with a state wide population that is nothing more than a midsize city elsewhere, has a $billion surplus, why arew we paying anything other than sales taz to begin with? "

taxpayer wrote on Aug 6, 2008 4:53 PM:

" You all need to know the facts here.
1) State of ND does not assess property taxes. They are set by local governments like city, county, park board, school board.
2) Vote yes on the Income tax reduction (measure 2 I believe?)
3) Vote yes on the permanent oil trust fund (measure 1)
This will simply put more money in the pocket of the taxpayer (consumer) which will result in increased tax revenues for the state (sales tax collections) and the Permanent Oil Trust fund will make it very likely that we will never have to pay income tax again in the near future, paving the way for our next generation to live a better life and to also attract new, higher paying jobs to come to the state. Bigger companies choose states that have low corporate income tax to build their shops, warehouses, stores, etc... and as a result will also increase the quality of life in ND. Here's our chance ND!!! "

Job wrote on Aug 6, 2008 3:38 PM:

" Yea Halabis that is what I said we do not need to be taxed at all.. must like puting words in peoples mouths.. Taxes have been mismanaged from the Gov down and needs to be resolved. I am not sure where I said I believe there should be no taxes in fact if you read my comments there should be taxes, there just needs to be a happy medium not a surplus of such magnitude. "

Job wrote on Aug 6, 2008 3:31 PM:

" So the way it sounds is the county commision is the one that controls it and if they wanted it changed they would have the power to change it. Thats all the info I needed I will look forward to voting. sorry to say not for the incumbent. "

Halabis wrote on Aug 6, 2008 2:27 PM:

" Job asks who does control (set or determne) property taxes? You will not get one name because there are many elected persons who do that task: School board for each school district who respond to the needs of their school and hired staff; the county commissioners who respond to the county officers --Auditor, Treasurer, Sheriff, Court system, etc.; the social services office and employees who respond to the needs of people; the streets and protection services have requirements, too. As do parks and rec., etc
There are a host of people involved in providing government and services. You do not have to like it, but you do not have many choices about how these services are to be provided. Maybe Job can dream up a new plan that exempts all of us from taxes and still allows us to freely and safely leave our homes each day. "

Manage that money for the future wrote on Aug 6, 2008 2:17 PM:

" What about my idea to put that money in an endowment? Does anybody know if that would work? That way we would always have a source of money coming in for the government to use. Maybe make it a public endowment where we would have to vote every year on how the interest is used? "

Its Not That Complicated wrote on Aug 6, 2008 2:06 PM:

" Who levies local property taxes? From the Burleigh County website: "Board of County Commissioners: The county is governed by a board of five members elected for four year terms. The Commissioners make policies regulating the functions of the many departments and see that these are carried out. Responsibilities of the Board are: levy taxes, appropriations, authorize bonds, set salaries, approve bills, accept bids, and approve the annual county budget ..."

It's similar in every other city, county or other unit of government. "

Job wrote on Aug 6, 2008 10:41 AM:

" Everybody says the Gov doesn't control property taxes.. Put a name to who does then? who do we elect that controls the property tax.. I don't want a group. I would like the name of ther person so I know who not to vote for. "

Law wrote on Aug 6, 2008 9:54 AM:

" Bis Prof, the teachers in Bismarck make more than the average salary of all the people in Bismarck. They are not overworked, if they work 10 hour days they work 1860 hours a year. Most people work 2080 hours. I have the utmost respect for the work the teachers do but in Bismarck teachers are not that bad off.
When your salary comes from taxes on people, most who make less than you do, it is hard to justify an increase. The surplus if spent to raise salaries will eventually cause a serious shortfall because once the boom is over the expenses will be set and there will only be an increase in taxes to maintain the spending. "

Wow wrote on Aug 6, 2008 7:26 AM:

" to kk & Miranda: Do you seriously think that the governor can cut mill levy rates? That is something set by the cities & counties. Even if the legislature (they have to pass the law, not the governor) gives more money to run the schools there is no guarantee that the mill levy rates will be reduced. "

Longtimer wrote on Aug 6, 2008 7:18 AM:

" Lower taxes andprovide a rebate! It just makes good sense and can be done while still maintaining a healthy surplus. That committment gets my vote in November. "

Halatbis wrote on Aug 6, 2008 7:01 AM:

" Ballot initiatves to reduce state taxes are coming in the Nov. election--it will be interesting to see if it will pass. Property taxes are a different issue and are county/city revenue base. The two forms of tax are completely separate---the governor does not have authority over either one---he can certainly influence the legislature to act on these issues, but he does not control or have authority over them.
The people of ND need to understand the difference between investment and spending---investment of some of this surplus in our future means building our ND industries and agriculture to provide jobs and income over the long pull, meaning decades of stable and good paying jobs for ND'ans.
On the other hand we can cut taxes and also vote ourselves a rebate from the nice surplus we now have--this leaves to chance the building of industry and agriculture that will be here after the boom of oil is gone.
Our state needs a plan for this money!!!! I, or one, do not see anything that looks like a long range strategy. "

LH wrote on Aug 5, 2008 10:26 PM:

" I agree about being bored with spending on education. In our small school we couldn't even make the Adequate Yearly Progress. I am all for education but its not all about more money for better education. It is time that the tax paying citizen get a break...... "

LK wrote on Aug 5, 2008 10:21 PM:

" Let's abolish state income tax...give back to the people. "

Dakota wrote on Aug 5, 2008 8:34 PM:

" 1.2 Billon / 600,000 people (apromx. pop. of ND)...lets do it!!! the goverment will waste it anyways... "

kk wrote on Aug 5, 2008 7:16 PM:

" MIranda~ I agree totally~ and this whomever telling us that the govenor has nothing to do with property taxes is a fool~ the govenor oversees ALL of this so the govenor can lower our property taxes by lowering the mill levy and giving money to the schools so that we the property owners do not have to "

Joe Citizen wrote on Aug 5, 2008 5:59 PM:

" I for one am getting a bit bored with the spend more on education rhetoric that I keep hearing coming from Hoeven. First, there are many government employees who are working for less then comparable jobs in the private sector. (No need to start the debate on how easy the government employees have it yadayada) I just think that the other line employees deserve as much consideration as the teachers. Next, as far as the Colleges and Universities, is there any reason why citizen of North Dakota are passed over by out of students from out of State for entrance into graduate programs, law and medical school? I would think that citizens should be the first selected into a State funded institution. One last thing before we start cutting into our funding to run the State (i.e. taxes) remember that someday the boom (whatever it is) will end. And when that time comes I would like to see our needed services maintained instead of running into the red. "

Manage that money for the future wrote on Aug 5, 2008 5:43 PM:

" Do you really think a surplus of this magnitude will ever happen again? I don't either so here is a thought. Lets balance the budget by cutting taxes so that the surplus doesnt increase. Then create an endowment fund where only the interest can be used and stipulate that it be used for something like education. "

Bis Prof wrote on Aug 5, 2008 5:42 PM:

" College Student, the tuition in ND is MUCH LESS than other states, and why? Because faculty pay is so low. That's right, I work for peanuts so you can have an inexpensive education. I suggest you start researching tuition cost in other states. If there's a large state surplus, I reccomend massive bonuses state wide for k-12 and college teachers. Truly, our high school teachers may deserve the most; they are overworked, underpaid, and have to walk the line between empowered students, administration, and parents far too much just to keep their low wage jobs. "

Nodak wrote on Aug 5, 2008 5:11 PM:

" I bet the legislature is going to try to vote for a pay raise with a surplus like that. I believe they should spend the money wisely but cut some of the taxes, because they must be keeping enough of our money as it is. Let North Dakotas energy economy grow by letting the people spend their money. Big shock that when people have money they spend it, in which their goods they buy are taxed and the state gets it's money back anyways. "

Golly wrote on Aug 5, 2008 4:34 PM:

" Dalfrednix:

You are right to a certain extent. The oil boom is adding a lot to it. At the same time, a poor leader can diddle money away pretty quickly. Take the 80s for example. Even though oil was booming, the state was in debt and they were raising taxes like crazy.

Oil Surplus Taxes:

I'm from oil country and they never, NEVER expected it to boom like this, not even the oil companies drilling there (that is, until they got that first well and then they were giddy as heck). In cases like that and when you are figuring oil at $90 a barrel and all of a sudden, it's $140, it's only ten times harder to figure out those estimates. So the people know how to do their job, but unless you have a crystal ball, there are definitely a few things you just can't predict. "

NDFREEZE wrote on Aug 5, 2008 4:09 PM:

" It doesn't surprise me that we have a huge surplus -- especially with property taxes being what they are -- I don't mind paying that much as long as my money goes somewhere useful. Maybe instead of all these poverty programs getting monies we could fix the roads and maybe the sewage system. We already know the legislators are giving themselves a pay raise -- lets put OUR money to good use instead of sitting in a vault. I mean at least spend some of it and leave a cushion for unforseen expenses. "

Job wrote on Aug 5, 2008 3:41 PM:

" To job- who said anything about spending it.. Get real. He or his employees are responsible for taxing keeping budgets in line. there job is to make sure we are not in debt but not have a huge surplus. there needs to be a medium. as far as not projecting oil revenue that is BS. every company out tehre has to lets see register there well with the state. they also have to show how much they produce fro wells just coming up the estimate it yes can be higher or lwoer but usually pretty close to the estimates.. They have wonderful engineers that do this..trust me ;o}. So somebody is not doing there job by figuring this out plain and simple. there should be a medium have a surplus.. no debt with some money left over for rainy days. 1 billion is excessive. "

snoller wrote on Aug 5, 2008 3:18 PM:

" Good Job Mr. Hoeven. That's how you make a good Governor, lots of money in surplus. Four more years, Four more years. Regardless what you do, not everyone will be happy. "

Oil Surplus Taxes wrote on Aug 5, 2008 3:07 PM:

" Okay, over one-half (622 million) of the surplus is directly related to oil production taxes on every barrel of oil produced. But, how much of the other surplus (income tax, sales and use tax, etc.) is directly related to oil production as well? The 622 million does not include the millions paid by oil companies and royalty owners for income tax, nor does it include the millions paid by oil companies and service companies for use tax on equipment. Thus, of our 1.2 billion surplus, probably 800 million or more is directly related to oil This means the Gov. and legislature need to be very careful in spending the surplus knowing it originates primarily from one commodity that has a history of crashing.....Please don't spend it all and don't cut taxes too much for the moment. This surplus could be gone faster than you can say "boom to bust" "

College Student wrote on Aug 5, 2008 2:53 PM:

" To Miranda: Why not give college students a break? Are you honestly implying that since you never got any help, you don't feel the current generation of students should get any either? It is specifically that kind of mindset that forces (no, it's not a choice) my generation to leave this state.

College isn't cheap, in this state or anywhere. The average student in ND goes over $20,000 in debt in federal loans. Tuition alone over four years at NDSU or UND costs over $24,000. That means that students can't even get enough loan money to cover the cost of tuition, let alone book costs and the cost of living.

If people want long-term economic growth in this state, you are going to need young people. Many of my generation would love to stay here, but without some sort of tuition assistance or loan reimbursement program, it just isn't going to happen. We will leave where the salaries are a bit higher because it means we'll be out of debt a bit faster. "

Law wrote on Aug 5, 2008 12:47 PM:

" To everyone, yes the state does not collect property taxes but the high school levies could be relieved by having the state pay a larger portion of the cost of running the schools. Only if the school districts drop their property tax collections so we don't get doubled up on. I don't know if the other entities really make up much of a percentage of the property tax burden. "

dalfrednix wrote on Aug 5, 2008 12:26 PM:

" To some extent the Governor is responsible for the + economic climate in ND. On the other hand he is also simply at the right place at the right time through NO effort of his own. Let's keep a balanced perspective when looking at the surplus and be thankful it is a SURPLUS which can hopefully benefit all ND citizens. "

MamaMia wrote on Aug 5, 2008 12:17 PM:

" Oh my, the abject ignorance on this page is appalling. "

Everyone Read This wrote on Aug 5, 2008 12:16 PM:

" The State of North Dakota does not generate any revenue from property taxes. If you have a problem with property taxes complain to your city, county, school board or park board. They are the reason your property taxes are so high, not the state. "

Miranda wrote on Aug 5, 2008 11:35 AM:

" As a home owner and property tax payer, I would like to see a rebate of money. I live in a townhouse in Grand Forks and pay more then my parents do in property tax on a lake in Detroit Lakes Minnesota. I think it is only fair to give the money that was mistakingly taken from Property Tax payers of North Dakota and give it back. Giving some to public grade schools across North Dakota is a positive place to give money. Not to college students though. I am an alumni of the University of North Dakota and I was never given a break in cost. "

Edword wrote on Aug 5, 2008 11:32 AM:

" Hey maybe Bismarck could get some of that money and do the silent train crossings that are SO badly needed. oh gota go, here comes other train so you won't be able to hear me,,, "

Revenuers wrote on Aug 5, 2008 11:22 AM:

" Surprise, surprise. WSI had an unlawful surplus too. ND is being abused by the "overtax and squat on the money" party. "

mlwalker wrote on Aug 5, 2008 11:18 AM:

" Sorry typo I 94.
If you have driven on it you know exactly which one I meant. "

To Job wrote on Aug 5, 2008 11:04 AM:

" Not doing his job?! Because being in debt like the rest of the nation would be a much better thing.

Good Lord. Do you spend all the money you have before you even have it? Because that, to me, is not doing a good job.

This is just a clear indicator that his initiatives are working and we're experiencing unprecendented growth. We'll see some tax cuts this session, just have a little patience for the legislative process and session to get rocking. "

Law wrote on Aug 5, 2008 10:27 AM:

" mlwalker, why should ND spend money on I-90, its not even in our state. Job, how is it that when a state has a budget surplus its govenor is not doing his job. I think its great the state has accumulated a surplus and hopefully the people will get a reduction in taxes because of it. "

Geoff wrote on Aug 5, 2008 10:16 AM:

" Are you kidding me 'Job'? Not doing his job? Don't you realize that this large surplus is the result of a thriving economy? Now they just need to come up with a plan to use these funds properly to benefit the entire state. "

Seriously wrote on Aug 5, 2008 10:13 AM:

" To Job: Ya darn it! Hoeven should be able to predict oil and other commodity prices and determine it's impact over years at a time. "

M wrote on Aug 5, 2008 10:13 AM:

" here is a shocker, how about some property tax relief. amazing mindsets they have. like a kid. we have all this money so lets spend it. no, give it back. "

to Job wrote on Aug 5, 2008 10:02 AM:

" Are you kidding me? Not doing his job? North Dakota is seeing the greatest economic growth in its history during a time when the rest of the nation is in recession. The whole reason we have a billion plus surplus is because of the economic environment created by Governor Hoeven. "

a resident wrote on Aug 5, 2008 9:47 AM:

" I saw on the news lastnight but Im not sure what the exact total was like 40 thousand (not sure) but any how, thats how much its going to cost to put in a WALK WAY at the Capitol grounds, **WHAT** ok why are they spending that much money on a piece of slab, I dont understand we could have more things out there to spend that kind of money on, Like youthworks, they help our community by helping our kids, why not throw them something or build activites for the community, like a outdoor theater or something. there is really not that much to do in our Big captiol. I just find it discusting that they would waste that much money on nothing that helps our community besides a piece of concrete. "

kk wrote on Aug 5, 2008 9:34 AM:

" Property taxes lowered and a rebate as well~ and do not respond with "it is up to the counties" The Govenor is OVER all counties so he can lower property taxes and do the rebates ~ give some of the surplus to schools so this can happen~ quit punishing the taxpayers with stupid legislative spending ideas "

gg wrote on Aug 5, 2008 9:29 AM:

" Ok, i agree wtih tim Mathern to an extent, it is a sign of fund mismanagement. But proper management of funds doesn't mean spending more, it means give the money back to the people because we are obviously overtaxed!!!! "

WhatTha wrote on Aug 5, 2008 9:25 AM:

" Wow. Hoeven and the legislature increased spending by 24% last session, and even that's not enough for Mathern?! Enough, already.

The brakes need to be applied now, or else it'll be a spend-fest come next January at the capitol. We need to vote for the income tax cut measure, so the money is kept in the taxpayers pockets, not in governments hands. "

bad road wrote on Aug 5, 2008 9:22 AM:

" I would like to see a little money spent on roads impacted by the energy exploration. After all that is where the money is coming from. Highway 12 from Bowman to the Montana state line is one the most used highways in the state for energy transportation and needs to be upgraded badly. It is an extremely rough and narrow road with many curves. It is a safety nightmare. When talking with DOT the answer is always "how do we fund this". I believe the state could invest a little back into the area. This road is just an example of many deteriorating local and state roads in the energy areas. "

Job wrote on Aug 5, 2008 9:08 AM:

" Again proof that somebody is not doing there JOB! HOEVEN WILL NOT GET MY VOTe AGAIN! "

mlwalker wrote on Aug 5, 2008 8:52 AM:

" Might I sugesst spending some of it on the roads throughout the state. There are some that are in REALLY sad shape I-90 included. With the increase in heavy traffic from the energy industry they will only get worse if you don't do something about them now. "

parent wrote on Aug 5, 2008 7:59 AM:

" I know there has been talk by the Governor that there be an increase in grants given to current students, but I would like to see a loan reduction policy for student loans already accrued. Many students went through college in the last few years when there were double-digit increases every year. They are now saddled with huge debt. Maybe a percentage could be forgiven. "

Young Voter wrote on Aug 5, 2008 6:40 AM:

" This is a clear indicator that we haven't made the investments that should have been made, and the Legislature needs to correct that," Mathern said in an interview."

So, the surplus is because we haven't been spending fast enough? That's all I need to know about that candidate! "

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