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ND Gov. Burgum calls for strategic investments in State of State Address

Governor calls for strategic investments

BISMARCK — Gov. Doug Burgum called for strategic investments to bolster North Dakota’s already growing economy during his State of State Address at the opening of the Legislature’s special session Monday.

Burgum presented a positive picture of North Dakota’s health, promoting an income tax credit of up to $500 annually over the next two years to distribute some of the state’s unexpected revenue.

He also assured lawmakers that “whether it’s burdensome regulation, redundant emission rules or misguided federal vaccine mandates, our administration will continue to push back against federal overreach and intrusion on states’ rights.”

But much of his message centered on the state’s prosperity.

“Employment is up, with 4,000 more people employed in September than a year ago. Our tax revenues are strong. Through the first three months of this biennium, general fund revenues beat the forecast by $60 million. Public and private sector innovation are thriving. Major economic development projects are being rolled out with frequency,” Burgum said. “We have identified private sector companies contemplating and evaluating more than $25 billion of investment in economic development opportunities in our state. This record dollar amount is driven by several factors, starting with our innovation, not regulation, approach, in our challenge to be a carbon neutral state — without any mandates or regulation — by 2030,” he said.

“A strong, resilient economy is an essential foundation that translates into strong state tax revenues, and coming out of this last 20 months, unlike other states, our reserves are healthier than ever,” he said.

North Dakota’s Budget Stabilization Fund is at its legislative maximum of $749 million. The Office of Management and Budget estimates nearly $600 million in unobligated balance in the Strategic Investment Improvements Fund at the end of the biennium. The state projects an unobligated general fund balance of $540 million by the end of the biennium in mid-2023.

The biennium ending last June 30 had a general fund balance of $1.12 billion, or $412 million more than the Legislature appropriated for the current two-year budget cycle.

Oil accounts for over half of the state’s tax collections, and Burgum noted that without more end uses for natural gas, including more in-state uses, a ceiling will be set on oil production, resulting in lower state revenue. He backed a plan to construct a natural gas pipeline across the state to deliver energy resources for growth in the eastern part of the state.

In addition to oil and gas, Burgum said, North Dakota has underground rock formations capable of storing an estimated 252 billion tons of carbon dioxide, or 50 years of America’s energy-related carbon output. Two weeks ago, the state permitted the first Class 6 carbon dioxide storage well in the United States at the Red Trail Energy ethanol plant near Richardson.

Burgum highlighted challenges facing the state as well.

“Workforce remains the number one barrier to economic growth,” Burgum said. “We have more than 18,300 job listings at Job Service North Dakota. That’s up 40% from a year ago, and we conservatively estimate that there are actually more than 30,000 jobs open across our state.”

He urged financial support for career academies, economic development programs, infrastructure investments and the prioritization of more than $200 million in deferred maintenance on state property.

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