North Dakota State of the State 2024: Tax Relief, Workforce Development, and Environmental Initiatives

2024-01-05 00:11:40

DICKINSON, N.D. — Gov. Doug Burgum will give his 2024 State of the State address on Jan. 23 at Dickinson State University’s Dorothy Stickney Auditorium. This address concludes his seventh year in office and will outline the state’s developments and plans, the governor’s office said.

The speech will cover the $515 million tax relief package that provided income and property tax relief to residents. It will also address the elimination of the state’s oil production “trigger” tax to encourage investment in the energy sector.

The address will include information on the North Dakota Child Care Initiative, which aims to improve child care access and affordability. The ND Works plan’s investment in Regional Workforce Impact Grants and the establishment of the Office of Legal Immigration will be topics of discussion.

Burgum will discuss the state’s initiatives in health, education and infrastructure. He will mention the expansion of Medicaid coverage for new mothers and address the state’s approach to substance use disorders and mental health. The introduction of cybersecurity education in schools from kindergarten through 12th grade and investments in infrastructure such as roads, bridges, water projects and flood protection will be included.

Burgum’s State of the State address will outline North Dakota’s strategies for economic reform, workforce development, and improvements in the health and education systems. The speech will detail the state’s plans for progress and innovation.

Tax relief and reform initiatives

The approval of a $515 million tax relief package, signed by Burgum on April 27, is expected to be the focal point of the address. This package comprised $358 million in income tax relief, marking the state’s most extensive individual income tax relief on record, along with $157 million in property tax relief over a two-year period.

House Bill 1158 revamped tax brackets and rates in a move the governor said positioned North Dakota with some of the nation’s lowest income tax rates among states with individual income taxes. In property tax relief, $103.2 million will be allocated to homeowners as a tax credit, while $53.5 million will be dedicated to expanding the Homestead Property Tax Credit program for seniors.

“Moving us closer to becoming a zero income tax state. Now over 60% of North Dakotans who work will pay zero income tax, and those who do pay will keep more of their hard-earned money,” Burgum said in a video update.

Additionally, House Bill 1286 eliminated the state’s “trigger” tax on oil production, aiming to encourage further investment in the energy sector.

Workforce and child care enhancements

The Burgum administration invested $66 million in state funds, supplemented by federal funding, into the North Dakota Child Care Initiative to enhance child care accessibility, affordability and quality.

The Legislature also allocated $30 million to the Regional Workforce Impact Grants and other workforce development programs. The Department of Commerce established the Office of Legal Immigration to facilitate international talent acquisition, and substantial investments were made in vocational training and workforce recruitment.

“Workforce is still our biggest barrier to economic growth,” Burgum said.

Economic diversification and agricultural development

Burgum signed legislation to update the state’s “corporate farming” laws, granting farmers and ranchers increased flexibility in capital aggregation. The state also increased its investment in the Agriculture Diversification and Development Fund to $25 million. Additionally, more than $1 billion was invested in processing soybean industry facilities, further strengthening the state’s role as a soybean producer.

Energy development and environmental efforts

The North Dakota Industrial Commission allocated $15 million in grants and $222.5 million in loans for projects aimed at improving oil and gas production and carbon capture, utilization and storage (CCUS). The state also approved its fourth Class VI carbon dioxide underground storage facility, solidifying its leadership in CCUS.

Streamlining government operations

The Red Tape Reduction initiative resulted in the implementation of 385 ideas from Team ND and the public, encompassing legislative actions and policy changes aimed at enhancing state government efficiency.

Tribal engagement and legislation

Notable

progress

in tribal relations encompassed the codification of the Indian Child Welfare Act into state law and the enactment of new legislation enabling direct agreements between the State Water Commission and tribal nations for water development projects.

Support for law enforcement and military

The administration implemented measures to bolster support for law enforcement and the military, which included the expansion of workers’ compensation coverage for first responders, an allocation of $3.5 million for recruitment and retention bonuses, and the introduction of a

state income tax exemption

for law enforcement retirement pay.

‘Behavioral health and addiction continue to be a top priority’

The 2023-25 budget includes an additional $15 million to fully fund the Free Through Recovery program.

The Legislature has allocated $70 million in American Rescue Plan Act funds to the Department of Health and Human Services for planning and developing a new State Laboratory building in North Dakota. This facility, intended for joint use by the laboratory services divisions of DHHS and the Department of Environmental Quality, will be located in the northeast area of the Capitol grounds.

The Department of Health and Human Services initiated the Working Parents Child Care Relief pilot and assisted in healthcare workforce recruitment in underserved communities. North Dakota has achieved a 58% employment rate for people with disabilities, the highest in the nation.

Infrastructure and community development

Over $1 billion was allocated for roads and bridges, along with an extra $780 million designated for flood protection and water projects. The Department of Water Resources authorized around $277 million for water supply and general water management projects.

Educational advancements and student support

The state-mandated cybersecurity education in K-12 schools and implemented a freeze on tuition rates for residents for two academic years. Additionally, HHS’s Best in Class program expanded to 65 classrooms, benefiting 910 children.

Safety, emergency response, and corrections

The North Dakota Department of Corrections and Rehabilitation allocated $131.2 million for a new women’s facility in Mandan, with an additional $30 million planned for the project, named the Heart River Transformational Center.

The North Dakota Department of Emergency Services established the 24/7 Watch Center for public safety information and sensor technology, reclaiming three full-time employee positions.

A primary seat belt law was enacted in North Dakota, effective Aug. 1. The North Dakota Information Technology department formed a Public Safety Technology Team to enhance the Statewide Interoperable Radio Network.

The DOCR collaborated with Bismarck State College to launch a Commercial Driver’s License program at the Missouri River Correctional Center, with eight residents completing training.

The JP3 initiative connects ex-offenders with jobs, providing comprehensive support, and Unity Village at the North Dakota State Penitentiary focuses on restorative justice.

Following extreme winter weather, the governor and Legislature approved $25 million for emergency snow removal reimbursements. The state received accreditation from the Emergency Management Accreditation Program and submitted $114.7 million in hazard mitigation projects for FEMA review. Additionally, North Dakota received over $2 million in cybersecurity grants and $11 million in Homeland Security grants.

Outdoor recreation and conservation

The establishment of a new state park at Pembina Gorge and a $27 million investment in state parks represented progress in outdoor recreation. The Game and Fish Department successfully managed aquatic nuisance species, with no new infestations reported in 2023.

Government modernization efforts

The Business Gateway initiative and pension reform were integral components of the government’s modernization strategy, aimed at streamlining business interactions and tackling public employee retirement system liabilities.

Governor Burgum’s seventh year in office showcased advancements across various sectors, highlighting the administration’s dedication to economic growth, workforce development, and public welfare. These initiatives and legislative actions reflect a concerted effort to address both the immediate and long-term needs of North Dakota and its residents.

“We’re excited and optimistic regarding our future and building on this progress for our state and our citizens, concluded the governor. “North Dakota’s balance sheet has never been stronger.”

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