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ND will see a $1.2 billion surplus

By Dave Thompson

Bismarck, ND – North Dakota's budget surplus has soared to over $1.2 billion.

The forecast estimates the amount of money that's expected to be in the state treasury next June 30. It says North Dakota's general fund surplus is expected to be $454 million. The oil tax trust fund is predicted to have a $623 million balance. And the existing "rainy day" fund already has $200 million.

Governor John Hoeven says the healthy surplus shows the state's economy is diversified -- and growing.

"Not only the growth in the energy sector -- clearly oil and gas is growing, and we're working hard to help build that -- but it's also wind energy, biofuels, renewables as well as traditionals," said Hoeven. "If you look across the whole economy, sales tax is over $1 billion, and that shows growth in the manufacturing base. Technology-based businesses, value-added agriculture, tourism -- they're all growing."

Hoeven has already proposed a $300 million plan to reduce local school property tax rates -- and increase state aid to schools. And Hoeven says that could be improved.

"We've already set out property tax relief as a priority," said Hoeven. "We've got a plan out there. And we can do more with that plan, because revenues are continuing to grow."

Hoeven also says he's open to reducing North Dakota's income tax -- although the governor isn't supporting a proposed ballot measure to cut income taxes.