Dems say use budget windfall now

Font Size:
Default font size
Larger font size

Republican plans to save most of a state budget surplus neglect the problems North Dakota has now, say the Legislature's Democrats, who have outlined plans to spend $55 million of it.

"We have the money in the budget," Sen. Mike Every, D-Minnewaukan, the Senate assistant minority leader, said Wednesday. "Let's put it back. Let's get it to them."

New forecasts of how much revenue the state will collect through June 2007 estimate that $146.8 million will build up in two savings accounts, called the budget stabilization fund and the permanent oil trust fund.

The stabilization fund receives money when collections on sales, income and other state taxes are greater than expected. The oil fund has been growing because oil tax collections have been swelling, helped by high prices.

Democratic legislative leaders, at a news conference Wednesday, said the reserve should be knocked down to $91.8 million. That would leave $55 million to spend, $80 million in the two savings accounts and $11.8 million left over when the state's next budget cycle ends in June 2007.

North Dakota colleges would be one of the major beneficiaries of the spending increase, getting $6.5 million. Local schools would receive another $15 million in state aid, and another $5 million would be set aside for state employee pay raises.

Rep. Rick Berg, R-Fargo, the House majority leader, said the Democratic plan is not sustainable, and could leave the state with a budget shortfall in the 2007 Legislature.

The Legislature is already addressing many of the Democrats' concerns, including healthy spending increases for state agencies, he said.

"All of these areas that they think are important already have substantial increases," Berg said.

Rep. Merle Boucher, D-Rolette, the House minority leader, said it's important to put money into problems before money gets tight or problems fester.

Print Email

/news/state-and-regional
 
Sponsored by:

Connect with Us