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The Bismarck-Mandan Young Professionals Network is pleased to announce the creation of a government affairs task force. The purpose of this education-focused group is to update YPN members with information about legislation during the North Dakota legislative session. The nature of the task force will be non-partisan and will function in an educational capacity only.
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Economic Stimulus
Posted 3/6//09
By The BMYP Government Affairs Task Force
A couple weeks ago, Congress passed and President Obama signed a $789 billion Federal Economic Stimulus bill. This past week, Governor Hoeven’s office released details concerning how this Federal Economic Stimulus will impact our state’s budget. North Dakota is expected to receive $573,516,443 of which $44,392,000 would go directly to local governments.
Major funding items include:
- $151,347,000 for k-12 education
- $181,123,000 for transportation projects
- $85,527,000 for Human Service programs
- $66,065,000 for Community Development and Energy Related programs
The Governor’s plan for the economic stimulus funds includes $233,100,000 in general funds that would be held over for the 2011-2013 biennium. Basically, these are state funds that were going to be spent, but now wouldn’t need to be because of the available Federal funds. This is allowed only in cases where the Federal funds are supplanting increases to budgets.
A major consideration of how to use the economic stimulus funds is that they are one-time funds. Legislators will be doing their best to make sure the funds are used for one-time expenses that won’t commit the state to increased levels of state spending in the future. This can be difficult because even one-time things such as constructing a building can lead to future expenses associated with operating the building.
The legislature will consider the Governor’s recommendation, as well as work with state agencies, as they work to incorporate the Federal stimulus dollars into the budgets. The legislature now how less than 40 days remaining to decide on the budgets and act on all of the bills.
A quick update on bills reported on earlier. HB 1268 providing a sales tax exemption for clothes was approved by the House and had a hearing before the Senate Finance and Taxation committee on Tuesday. HB 1324 providing economic stimulus payments and future income tax reductions was approved by the House and had a hearing before the Senate Finance and Taxation committee on Wednesday. SB 2199 providing property tax relief was approved unanimously by the Senate and will have a hearing Monday before the Senate Finance and Taxation committee.
HB 1521, which would have temporarily reduced the state sales tax, was defeated in the House by a vote of 44-47. HB 1279, which would have reduced income tax rates, failed in the House by one vote. HB 1243, which would have provided a child tax credit, was defeated in the House by a vote of 24-67.
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