North Dakota House Bill HB1367

North Dakota 2023-2024 Regular Session

• Introduced: 1/12/23
• Refer: 1/12/23
• Report DNP: 1/25/23

Caption

Adoption and referral of preliminary budgets of cities, counties, school districts, and park districts; and to provide an effective date.

Impact

A significant aspect of HB 1367 is the mechanism for public involvement. If a preliminary budget is challenged by a petition signed by at least ten percent of the voters in the jurisdiction, it must be put to a vote. Should a majority disapprove the preliminary budget, the local government is restricted from adopting a final budget that exceeds the previous year's budget, plus a minor adjustment related to the mill rate. This could greatly affect how local budgets are crafted and approved, aligning them more closely with community preferences.

Summary

House Bill 1367 aims to create a new section in North Dakota's Century Code that governs the adoption and referral process for preliminary budgets of local governing bodies, including cities, counties, school districts, and park districts. This bill mandates that these bodies adopt a preliminary budget by July 10 of each year and requires that it be published in the official newspaper twice before July 30. The intent is to enhance transparency in budgeting processes at the local level, ensuring that residents are informed about upcoming budgetary changes.

Contention

While proponents argue that the bill increases accountability of local governments and empowers citizens, there are concerns about the potential implications for local governance. Critics might argue that the requirement for a public vote on preliminary budgets could lead to instability or delays in budget finalization, making it difficult for local governments to adapt to changing fiscal needs. The bill's supporters, however, assert that it encourages a more democratic budgeting process that reflects the will of the voters.