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The governor's priorities for tax reductions and workforce development are on target, according to Senate Majority Leader David Hogue, R-Minot.
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Responding to Gov. Doug Burgum's State of the State address presented Tuesday in Dickinson, Hogue said as state revenues continue to exceed budget estimates, that should translate into additional, permanent tax reductions in the 2025 session.
"I’m not sure we’ll be able to eliminate individual income tax, however, because we are committed to solving increasing property tax burdens on primary residence owners. If our revenues stay on the current trajectory though, I expect the 2025 legislative assembly to substantially reduce the property tax burden of primary residence owners and state income taxpayers," he said in a prepared statement.
"Second, I see our workforce challenges that Governor Burgum outlined as the principal impediment to double digit annual growth of our state economy. The N.D. Senate formed a standing committee to deal specifically with our workforce shortage," he said. "We know that adequate child care is a workforce multiplier by incenting parents to enter our workforce who would otherwise go backwards by the time they pay for day care and collect a paycheck. The Senate will need to see evidence that the state’s $66 million investment in daycare is improving employment and materially increasing employment of parents who want to work but cannot afford daycare."
Sen. Karen Krebsbach, R-Minot, said the state's ability to maintain reserves of $1.3 billion and general fund revenue of $154 million while investing into many areas of the economy speaks loudly about the soundness of the administration's policies.
"The accomplishments have been many and this progress sets the state on track for future growth and further accomplishments. The executive along with the legislative branch of government brought forth a budget that is sound, balanced and was designed for the needs of the people of North Dakota," she said. "It was alarming to hear that 75 percent of the court cases in our legal system stem from mental health and addiction issues. This will need further addressing."
Democratic-NPL legislative leaders found the governor's message fell short.
"North Dakotans are demanding more than just another income tax cut," Senate Minority Leader Kathy Hogan, D-Fargo, said in a prepared statement. "They want real solutions to the workforce crisis, the childcare crisis, the housing crisis and the mental health crisis - all of which have gone unsolved on the Republicans' watch."
Burgum touched on many topics in delivering his final State of the State address, including energy development and a proposed housing initiative.
Hogue agreed with Burgum’s observation that the United States needs an all-of-the-above energy policy.
"Our state policy must be to encourage robust development and efficient use of all of our abundant natural resources. We’re seeing a convergence of our two leading industries - agriculture and energy - into a hybrid industry that we’ve long hoped for but never realized. Using our soybean and corn production to produce renewable fuels is a common sense way to generate more wealth and economic activity in N.D., while reducing our dependence on Chinese and Southeast Asian buyers of our corn and soybeans," he said. "We import our fertilizer from foreign countries including Russia, but we now have two multibillion dollar proposals to take our renewable energy sources and convert them into fertilizer for our farmers. The capital for those two projects, and others, is flowing into North Dakota because of our policies, and the strong advocacy of Governor Burgum."
Hogue also indicated he is open to looking at a housing initiative. North Dakota ranks well nationally in housing affordability based on the ratio of housing costs with household income, but that ratio may be less attractive in the state's rural areas, he said.