NDACo Legislative Update March 18th

Big budget issues got considerably more attention this week. The consulting economic prognosticators for the Legislative and Executive Branch each delivered their revenue projections. Both anticipate a significant, though not substantial, increase to oil & gas taxes and to other general fund revenues. The legislative body will adopt an ‘official’ revenue projection this Friday, which will create the guardrails for the final Legislative Budget. Specifically, the oil tax revenue forecast shows an increase in tax allocations to political subdivisions and anticipates the county Municipal/County/Township Infrastructure (Prairie Dog) buckets filling next biennium. These forecasts are critical in reaching adjournment of the Session. Interestingly, there is much discussion of an early adjournment – possibly as early as April 22nd (the 72nd Legislative Day), leaving eight days for the redistricting session in the fall.

With the budget guardrails under construction, the big infrastructure bills were scheduled for their second hearing. 

HB1341 (Bonding Bill) was heard in Senate Finance and Taxation, with a major leadership amendment proposed to adjust the investment of bond proceeds to include $70 million for Bridge Projects and federal match for roads, and $30 million for township roads.  Additionally, $50 million will be added to the $175 million already in the infrastructure revolving low interest loan fund.

The “Streams Bill”, or Legacy Interest Investment proposal (HB1380) was also heard in Senate F&T.  It also showed up with its own proposed amendment.  Most important for counties is the proposal to dedicate a percentage of the interest (estimated at $58 million) to the Highway Distribution Fund – 22% of which goes to counties.  This is the equivalent of a bit more than 6-cents of motor fuels tax, while having the added benefit of growing each biennium and the interest from the Fund grows.  

A lengthy hearing on the primary seatbelt law. Law enforcement officials were joined by NDACo and other traffic safety organizations. SB 2121 received heavy support from those testifying, however, despite the passionate testimony the House Transportation committee delivered an 8-5 Do Not Pass recommendation. This issue is a top priority for counties, and we will be asking for your help in reaching out to Representatives to urge a "Green" vote. 

Another priority item, the inmate prioritization reimbursement bill (HB 1112) was heard this week in the Senate Judiciary committee and given a Do Pass recommendation. This bill, if approved will require DOCR to pay the housing and medical costs for state-sentenced inmates in local jail facilities when the prioritization plan is effect. 

Click here for the schedule for next week's hearings