Jan 07, 2009 - 04:05:24 CST
Lawmakers called Gov. John Hoeven's State of the State address on Tuesday a positive and ambitious plan that is likely to stir some debate over the next four months in light of a distressed national economy.House Majority Leader Al Carlson, R-Fargo, said the governor's budget is a good blueprint to begin the session, saying many lawmakers agree with the governor's plan to fund certain priorities, as well as cut taxes and increase the state's reserves.
As for the governor's plan to provide $300 million in property tax relief, Carlson said he expects more discussion about property tax reform.
"The state does not assess property and the state does not collect property taxes," he said. "So, therefore, for us to get involved in that, we have to make sure in the end that there's a true reduction to our citizens in their property taxes."
Democratic leaders said they were pleased by the proposals outlined by governor Tuesday, but said lawmakers should be cautious going into this session in light of a drop in oil prices and a struggling economy.
"Before we start giving tax cuts, we'd all like a tax cut and we're certainly not talking about any tax increases, but we want to be very cautious moving forward," said House Minority Leader Merle Boucher, D-Rolette.
Boucher said the state should be cautious but also invest in infrastructure because, "If you talk about building the future, the first thing you don't do is unravel the present."
Senate Minority Leader David O'Connell, D-Lansford, said lawmakers should have a better picture of the national and state economies when a report on the state's budget outlook comes out in February.
Sen. Dwight Cook, R-Mandan, said the governor's tax relief proposals and funding for higher education are the most important issues to address over the next four months, adding that, "It's nice to be the envy of the nation here in North Dakota right now.
"People want property tax relief. They're not as sensitive to their income taxes. There are those that are, but I think property tax is the one we have to focus on," he said, adding he would not be surprised if the Legislature does not cut income taxes this session.
As for higher education funding, Cook said the governor's proposal, which includes $170 million in ongoing and one-time spending, could be too high a cost.
Cook also said the economic downturn will have an effect on what happens to the governor's proposals throughout the session.
"I know we're not immune; you saw what happened with Bobcat," Cook said. "Hopefully we can do something that can really keep the pain minimal. I think that's how we have to approach this."
Sen. Tracy Potter, D-Bismarck, said he agrees with what Hoeven says about making investments into the economy, adding tribal areas also need help.
"I didn't hear anything about our relationship with the native people of North Dakota," Potter said. "While so much of the state is doing really well, we know there are some pockets of poverty in North Dakota."
Potter said he agrees that the state should continue building its reserves, but should not store away too much. He said that he will be introducing legislation this session to create a new constitutionally based oil trust fund that would save 25 percent of incoming oil revenue.
He called Hoeven's property tax proposal a "slam dunk," and said that he would support a similar measure to Hoeven's plan for a $100 million income tax cut with some "tweaking."
Rep. Dan Ruby, R-Minot, called the governor's proposed budget unsustainable, vowing that he and other lawmakers will oppose any budget that exceeds the last biennium's budget plus 7.6 percent.
Hoeven's proposed $7.7 billion budget is an increase of about 19 percent from the past two years.
Ruby announced in a press conference after the governor's address that he would be introducing legislation this session that would create a constitutional amendment to abolish the property tax, and another that would limit government spending by restricting it to budget levels at the time the amendment passes.
Ruby also said he and other lawmakers will introduce legislation that gives businesses the option to seek workers compensation from a private company, and another that would prohibit government subsidies that aim to promote energy development, especially biofuels and "green energy."
(Reach reporter Brian Duggan at 223-8482 or brian.duggan@;bismarcktribune.com.)
ljfrommin wrote on Jan 8, 2009 2:11 PM:
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