The House Democratic Leader says he’s dismayed by the agreement between House and Senate Republicans on the oil tax funding formula bill.
The current formula allocates 75 percent of the oil production tax to the state, with 25 percent going back to local governments. A 60-40 split had been proposed, with 60 percent going back to local subdivisions. The House made it a 70-30 allocation – with the state receiving the 70 percent share. And the Senate’s GOP leaders say they agree with the number, but have some suggested changes on how the local share is divvied up.
Rep. Kenton Onstad (D-Parshall) says at least, the Legislature should look at some kind of trigger mechanism – to boost the local share in the second year of the biennium.
"When you look at the (revenue) projection moving forward, the second year of the biennium is very encouraging," said Onstad. "Because of that, I think we have to further look at some targets."
Senate Minority Leader Mac Schneider (D-Grand Forks) says the trigger talk is still in a concept stage. But he says as the Senate Appropriations Committee debates the bill, Democrats will try to increase that 30 percent figure.
"During campaign season, it was 60 percent," said Schneider. "I understand full well that things have changed, so we may have to readjust. But 30 percent is way short of the mark."
Democrats are considering suggesting a triggered increase in the local share of the production tax to 40 percent ij the second year of the biennium.
