Oct 11, 2008 - 04:06:30 CDT
Two lawmakers are asking voters to nix Measure 1 this fall, saying they will introduce another constitutional amendment next session that would put 25 percent of oil revenue into a trust fund every two years instead of $100 million.At a Friday press conference, Sen. Tracy Potter, D-Bismarck, and Rep. Kathy Hawken, R-Fargo, said Measure 1 would lock away too much money, making it difficult for lawmakers to invest in roads, schools and tax relief.
"The idea of the trust is a good one," Potter said. "But what it ought to be is something taken to a percentage, not a dollar figure."
Rep. Dave Weiler, R-Bismarck, who introduced the constitutional amendment in 2007, said fixing the trust fund on a percentage instead of hard figure such as $100 million would potentially decrease the amount saved by the state in the long run.
He said the new plan put forward by Potter and Hawken is simply a "front" to spend more money in the next session.
"We can argue about the details all day long," Weiler said. "The only thing they object to is that they cannot get their hands on this money."
But Potter said Measure 1 is the wrong move in light of the nation's financial crisis, adding the new constitutional amendment would go before voters in 2010 when the implications of the crisis are better realized.
Hawken voted to approve Measure 1 during the 2007 session, calling her vote a "mistake" on Friday. Potter did not vote for the constitutional amendment that created Measure 1.
Hawken added if voters approve Measure 1 or Measure 2, the Legislature would have trouble funding property tax relief or any of the initiatives put forward by the gubernatorial candidates.
"I truly believe passing Measure 1 and Measure 2 will prevent us from doing any of those things," Hawken said. "I actually think property taxes will increase."
North Dakota's gubernatorial candidates, who both oppose Measure 1, said they would consider the plan put forward by Potter and Hawken on Friday.
"Saving in excess is irresponsible," said state Sen. Tim Mathern, the Democratic-NPL candidate. "When you get some money you fix some things that haven't been fixed and there are a lot of things in the infrastructure that haven't been fixed in the last eight years."
Don Canton, spokesman for Gov. John Hoeven, said the state has built a healthy reserve to fund programs and tax relief, adding the governor would consider the new amendment if "it's structured right."
(Reach reporter Brian Duggan at 223-8482 or brian.duggan@bismarcktribune.com.)
Point to Ponder wrote on Oct 13, 2008 5:00 PM:
No where in the text of the bill or anywhere else does it state how the principle will be invested. Now I'm not suggesting playing recklessly on the stock market, but there are stable mutual funds that will pay higher interest rates rather than dumping it in the Bank of North Dakota. "
Point to Ponder wrote on Oct 13, 2008 1:18 PM:
All revenue deposited in the general fund during a biennium derived from taxes imposed on oil and gas at the time of production or extraction which exceeds one hundred million dollars must be transferred by the state treasurer to a special fund in the state treasury known as the permanent oil tax trust fund. Beginning in 2011, at the beginning of each biennium immediately following a biennium in
which revenue from taxes imposed on oil and gas was deposited in the permanent oil tax trust fund, the state treasurer shall adjust the dollar threshold amount as determined under this section for transfers to the permanent oil tax trust fund by applying to that amount the rate of change since the beginning of the previous biennium in the consumer price index for all urban consumers, all items, United States city average, or any successor index, as calculated by the United States department of labor, bureau of labor statistics. The state treasurer shall transfer interest earnings of the permanent oil tax trust fund to the general fund at the end of each fiscal year. The principal of the permanent oil tax trust fund may not be expended except upon a vote of three-fourths of the members elected to each house of the legislative assembly and not more than twenty percent of the principal may be expended during any biennium.
Language on ballot:
This constitutional measure would add a new section to Article X of the North Dakota Constitution. This measure would establish a permanent oil tax trust fund from oil and gas tax revenue exceeding one hundred million dollars per biennium, adjusted for inflation; interest earnings on the trust fund would be transferred to the general fund each year; and no more than twenty percent of the principal of the trust fund could be spent each biennium, if approved by three-fourths of the members of both houses of the
legislature. "
ck wrote on Oct 11, 2008 8:06 PM:
mikesouth wrote on Oct 11, 2008 3:25 PM:
One only needs to look at the spending proposals already announced to realize what a challenge the 2009 legislature will have in holding down appropriations to a level which is consistant with good budget management. A Yes vote on
Measure 1 will bring about a much more balanced approach to dealing with those
spending requests. "
la wrote on Oct 11, 2008 10:25 AM:
Squidward wrote on Oct 11, 2008 8:57 AM:
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