Feature Stories (Vol. 109 No. 18--5/02/2007)

2007 legislative session will be noted as the "most historic session"

By Rep. Glen Froseth

Already termed as the "most historic legislative session in North Dakota’s history," the 2007 Legislature made historic investments in vital government services and placed North Dakota in a strategic financial and economic position.

The $500 million budget surplus is a direct result of more than 10 years of diligent Republican leadership in North Dakota. Responsible, consistent tax and regulatory policy has built the best business climate for growth.

Republican leaders were charged with deciding what to do with the state’s $500 million budget surplus. We made three choices:

1. Returned $115 million back to the rightful owners of the money, North Dakota taxpayers.

2. Saved $200 million in the state’s rainy day fund, giving North Dakota one of the largest budget reserves in the nation. (One month’s worth of general fund spending.)

3. Delivered historic increases to areas where state government plays a vital role in our state:

a. $91 million increase to K-12 schools.

b. Nearly $100 million more in human service programs helping poor people, seniors and the most vulnerable. This is our largest state budget with a total of $1.8 billion dollars dedicated to it. Of those dollars, $580 million is state money and the balance is leveraged in federal funding.

c. More than $80 million increase in higher education. This total budget is another of our state’s top four, with $633 million total dollars and $468 coming from state taxpayers. The balance ($164 million) comes from student tuition.

d. Tough new laws against sexual predators to maintain our status as the safest state in the nation.

e. Strategic investments in initiatives to enhance the state’s business climate, including more than $40 million renewable energy package, the best research and development tax credit in the nation, doubling state support for export assistance, and significant investments in workforce development.

We also laid plans for improvements in our correctional facilities, set aside $41 million, and named a committee to study the needs of providing facilities to house our prisoners and to provide the safest environment for the workers in our penitentiary system.

f. The Department of Transportation also demands a large portion of the budget with a total of $955 million to improve and maintain our highway infrastructure.

North Dakota voters will vote on a Constitutional Amendment to secure future oil tax revenues in the Permanent Oil Tax Trust Fund. If approved in November 2008, the initial $100 million in revenue from oil and gas production will be deposited into the general fund. Any revenue above $100 million will be deposited in the Permanent Oil Tax Trust fund and a three-fourths vote of both houses is needed to approve expenditures from the fund.

With these changes, the fund will operate similarly to the Alaska Permanent Fund. Established in 1976 when Alaska’s oil boom was just beginning, that fund also saves a share of oil revenues. The Alaska fund has grown to billions of dollars, which sustain much of Alaska’s state government spending and provide enough revenue that some of the proceeds are distributed as checks to Alaska residents each year.

A historic school funding package increases money for K-12 schools by $91 million and significantly reforms the state’s school funding formula in order to create more equitable funding on a per student basis.

Total spending for K-12 education is $800 million, 20 percent of the state’s budget.

The legislation overhauls the state’s funding formula by providing weighting factors that reflect the additional costs of educating students based on factors such as school size, English Language Learner programs and early childhood programs.

This is entirely a new concept in the manner in which our K-12 education is financed. Over the next several bienniums, this plan will be revised to meet the needs of our entire school system in North Dakota.

North Dakota joins the ranks of 48 states by removing the requirement that the Superintendent of Public Instruction be a licensed teacher, leaving Arkansas as the only state with such a requirement. The department manages a budget of $800 million and this change will open the position to a larger arena of qualified candidates to seek the position of administering one of our largest budgets in state government.

For the 10th time in 14 years, North Dakota is rated the safest state in the nation by Kansas-based research firm Morgan Quitno Press. Several new measures protect people from one of the most vexing current public safety threats: sexual predators.

· Established a 20 year mandatory minimum sentences for violent sexual assaults with a possible life sentence. (HB 1216)

· Created a more flexible determination of a sexual disorder or tendency to commit sexual crimes for civil commitment. (HB 1217)

· Made possession of child pornography a Class C felony. (HB 1357)

· Expanded GPS monitoring of certain offenders. (SB 2029)

· Limited registered sex offenders access to school property.

· Restricted protests at funerals for fallen soldiers.

· Doubled the death benefit for families of soldiers killed in action.

· Increased funding for tuition assistance for National Guard members.

· Clarified child custody arrangements so soldiers with dependents don’t have to worry about losing custody when called to serve.

·Approved $6.5 million of state funds for construction of a new N.D. Veterans Home in Lisbon.

Nearly $100 million in new general funds delivers more help for the developmentally disabled, more compensation for those who provide long term care in facilities, more assistance for people who help family members at home or in community based care, and more help for families of children with special needs.

Total funding for Human Services increases from $1.68 billion to $1.82 billion.

· Increased reimbursement rates for all health care facilities.

· Developed a comprehensive package of measures to support Emergency Management Services statewide.

· Provide automatic external defibrillators for all schools.

· Implemented continuous eligibility for Medicaid children to reduce costs to counties.

· Due to reduction in federal funding, the state increased funds for childhood vaccines to maintain the state’s high immunization rates.

· Families of children with disabilities will be allowed to buy-in to the Medicaid program. The state will take over the cost of child support enforcement, which is currently funded by the counties.

· Expanded insurance coverage to 1,450 uninsured children in Healthy Steps program by raising the income eligibility. Currently, 3,836 children are covered in the program.

· Increased funding for emergency shelter and homeless assistance programs.

Trade: Doubled state support for the North Dakota Trade Office. In the last two year, North Dakota companies have increased their exports at nearly twice the national rate.

Development Fund: $4 million in the North Dakota Development Fund will provide more funding for loans and interest buy-downs for business start-ups and expansions.

· Established the highest research and development tax credit rate in the nation to encourage research and development in the state that will lead to more diversified economy and higher paying jobs.

· $20 million in Centers of Excellence.

A broad package of initiatives maximizes North Dakota’s renewable energy resources, stimulates growth of the agriculture industry and enhances the state’s ability to help reduce dependence on foreign oil.

·A new Biomass Energy Center will be housed at one of the universities and will conduct research and provide education and technical assistance related to biomass production, harvesting, transportation, and conversion.

· A $20 million Renewable Energy Fund, managed by the Industrial Commission, will make grants, loans and provide other forms of financial assistance to support development of wind, biofuels, biomass, solar, hydroelectric, geothermal, and hydrogen.

· Biofuels PACE: $5 million for a program to offer low-interest loans for the development of biofuels projects.

· 25X25 Initiative, a new nationwide goal, calls for 25 percent of our nation’s energy to come from renewable resources by the year 2005.

· The new Chapter 17 in the North Dakota Century Code brings together all energy-related sections of North Dakota law into one, comprehensive state energy policy.

· The North Dakota Pipeline Authority, under the direction of the Industrial Commission, will help increase transportation capacity for oil and gas as well as other energy related commodities.

$4.7 million to help businesses address workforce challenges, including:

· $1.65 million in training grants;

· Doubling funding for the division of Workforce Development to spearhead implementation of a statewide talent strategy;

· $600,000 to enhance Operation Intern.

· $100 million in state funding will support the first phase of a $700 million Red River Valley Water Supply Project. Phase one of the project will bring water from Lake Sakakawea to Lake Ashtabula and on to Fargo. The second phase will provide water to Wahpeton, Grafton, Grand Forks, Drayton and Pembina.

· The project is the culmination of numerous studies over the past 12 years to determine the water supply needs of the Red River Valley and the best way to meet them.

· State employees will receive a 4 percent annual pay raise and the state will fully fund all employee health insurance premiums, which rose nearly 20 percent over current biennium.

· A $10 million pool provides funds for equity raises where pay is behind the market rate for a position.

Also, a new minimum wage bill was passed to allow North Dakota to raise their minimum wage to coincide with new federal guidelines.

Although several news media made light of the fact this was a record setting session due to the 78 days we used, this was also the most complex session in which I have served. Numerous bills were very complex due to the fact that more requests were made for funding, tax exemptions, tax credits, and numerous other requests stemming from the budget surplus and the potential of tapping into some of it.

We will also be criticized for not spending more, and putting money into savings. However, I feel good about the fact we have a strong economy and a secure future for generations to come. Any good business manager tries to carry reserves to assist through more lean times. The state of North Dakota should be no different.

Once again, I appreciate all the emails and contacts during the session. The opinions of our citizens are very important to legislators and help us make the decisions we feel are best for our district and the state as a whole.

During the interim, I can be reached through email at gfroseth@nd.gov, or by calling 385-4811.

It was a pleasure and an honor to serve the people of District 6, and I thank you for the support and the opportunity you have given me.

Copyright © 2007 Kenmare News
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