News Conference Comments of Governor John Hoeven Regarding the End of the Legislative Session

News Conference Comments Of Governor John Hoeven Regarding The End Of The Legislative Session

[Revised]

Gov. John Hoeven today made the following remarks at a joint news conference with Senate Majority Leader Bob Stenehjem and House Majority Leader Rick Berg:

"From the beginning of the legislative session, we focused on our key priorities. First, we were committed to fiscally responsible government. We cut the rate of growth in government spending in half, to just over 2 percent, about the rate of inflation. In addition, two-thirds of our state agencies will be spending less money in the coming biennium than in the current biennium. We accomplished these things while still providing more services to our citizens.

"At the same time, we provided strong funding for our priorities.

K-12 EDUCATION

"We made real progress in school funding and teacher compensation:

We increased state support by more than $36 million.

We targeted an additional 12.4 million for teacher compensation over the next two years, which will benefit 7,500 North Dakota teachers.

We raised the state minimum salary for teachers from $20,000 to $21,500, benefiting 1,500 teachers.

We improved school funding equity. For example, supplemental payments to needy schools will increase from $2 million to $6.3 million.

TAKING CARE OF PEOPLE

"We also continued our strong commitment to taking care of people. Our Human Services budget in the upcoming biennium dedicates more funding for long-term care and for people with developmental disabilities. We also increased funding for home and community based care so that seniors and people with disabilities can be served in the most appropriate environment for their needs.

SMART GROWTH

"While we exercised solid fiscal responsibility and concern for our citizens, we put forward and passed initiatives for our number one priority, economic development, and specifically, creating higher paying jobs and new opportunities for North Dakotans.

"These include initiatives like:

Centers of Excellence -- Earmarked $5.6 million to promote research and development, and to link education with business to create higher paying jobs.

New Venture Capital and Seed Funds -- Devoted more than $16 million for early stage business formation, when capital support is critical for success.

Ethanol - Created a cumulative $3 million ethanol production subsidy program to sustain existing ethanol plants and encourage the construction of new facilities.

Energy Development - Created a new Oil and Gas Research Fund to develop the state's oil and gas resources; provided a 24-month tax exemption for shallow gas wells; created incentives for electrical transmission construction; development of biodiesel; and elimination of the double taxation on wind energy production.

Corporate Tax Simplification - Simplified the state corporate income tax, reducing the rate from 10.5 percent to 7 percent to improve North Dakota's business climate.

ConnectND - Provided $20 million for ConnectND, North Dakota's integrated software system to streamline resources in higher education, K-12 schools and government, creating new services, business opportunities and efficiencies for North Dakota citizens.

THE SPECIAL LEGISLATIVE SESSION

"In addition to the solid work we achieved in the regular session, we accomplished important work in the special session. We committed funding to teacher compensation, provided resources for corrections and we made significant changes to determine how more than $100 million in technology and our state employee workforce will be managed.

K-12 Education

"Education is the key to our future, both as individuals, and as a state. It is extremely important that we have carried forward on our commitment to raise teacher compensation.

New legislation committed 70 percent of the increase in foundation aid and tuition apportionment payments for teacher compensation. That represents $12.4 million in the classroom.

About 7,500, or 85 percent, of the state's 8,809 eligible teachers will directly benefit.

"This increase, combined with a rise in the base salary from $20,000 to $21,500, will truly make a difference to North Dakota teachers.

Information Technology Department

"Technology is moving our state forward, creating jobs and laying the infrastructure necessary to build our future in North Dakota. Our Information Technology Department manages a budget of more than $100 million to serve the people of our state.

"The work of the special session eliminated the cumbersome purchasing pool in earlier legislation, which would have required all state agencies to make purchases of $500 or more through the Information Technology Department. This legislation would have set up another bureaucracy, tied up all state agencies and increased costs.

"The bill now provides the necessary flexibility and discretion to effectively manage the state's information technology agency. The result is significant savings to taxpayers. For example, the Department of Human Services estimates savings of $400,000, and Workers Compensation estimates savings of more than $1.2 million.

"The bill now provides discretion and flexibility to the Executive Branch to manage consolidation of any technology services in a way that is sensible and cost effective.

Department of Corrections and Rehabilitation

"North Dakota is the safest state in the nation, with safe schools and communities. We need to ensure that we have adequate resources to maintain our solid standing as a safe place to live, work and raise a family.

"Our concerns about the corrections budget have been addressed by providing access to $3 million to adequately staff our prisons. An additional $1 million has been added to the Corrections Department's operating budget to retain prison guards and support staff. In addition, we now have access to an additional $2 million or more if needed, based on inmate population growth, through the Emergency Commission and the Legislative Budget Section.

State Employees

"Thousands of North Dakota citizens rely on state employees for essential services. New legislation provides "intent" language, allowing for a 1 percent and 2 percent salary increase for state employees through reduction in staffing and other efficiencies. It no longer requires reduction of 176 state employees, but allows proper discretion to manage state government. These changes have a real impact on people's lives - not only our state employees, but all citizens of North Dakota.