The implications of HB1502 could fundamentally alter how financial planning and appropriations are handled at the state level. By constraining the growth of the general fund, the bill aims to curtail excessive spending and encourage more rigorous financial oversight. This could lead to a healthier fiscal environment, supporting long-term sustainability of state finances. However, it may also restrict the government's ability to respond to unforeseen expenditures or crises, such as natural disasters or economic downturns, potentially limiting its responsiveness to the needs of residents.
Summary
House Bill 1502 seeks to establish limitations on the growth of North Dakota's state general fund budget. The proposed legislation stipulates that the total general fund budget for a biennium cannot exceed a three percent increase compared to the previous biennium. This is intended to impose fiscal discipline on the state's budgetary processes, thereby ensuring that budget growth remains manageable and predictable over time. The bill also allows any differences where budget increases are below the maximum limit to be carried forward for up to three bienniums, providing some flexibility for future budget planning.
Contention
While proponents of HB1502 argue that the bill is a necessary measure to control state spending and promote fiscal prudence, opponents may raise concerns about the rigidity it introduces. Critics may contend that a fixed cap on budget growth could hinder the state’s ability to invest in essential services or adapt to changing priorities. Additionally, if a two-thirds majority in the legislative assembly is required to exceed the limit, it could lead to political contention and challenges in effectively managing state resources during times of need.
Fuel production facility loan guarantee reserve funding, the housing incentive fund, the powers of the North Dakota pipeline authority, definitions for the clean sustainable energy authority, a clean sustainable energy authority line of credit, and an appropriation from the state fiscal recovery fund; to provide a contingent appropriation; to provide for a transfer; to provide an exemption; to provide for a study; to provide for a report; to provide a statement of legislative intent; to provide an effective date; and to declare an emergency.
Transfers from the lottery operating fund to the multijurisdictional drug task force grant fund and the salary of the attorney general; to provide a transfer; to provide an exemption; to provide for a legislative management study; and to declare an emergency.
Determination of state school aid, information displayed on property tax statements, transfer of legacy fund earnings, and deposit of oil and gas tax revenues; and to provide an effective date.
The autism voucher; to provide a statement of legislative intent; to provide for a legislative management study; to provide for a report; to provide an effective date; and to declare an emergency.
A transfer of Bank of North Dakota profits to a water infrastructure revolving loan fund; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide a report; to provide a penalty; to provide for application; to provide a retroactive effective date; to provide a contingent effective date; to provide an effective date; and to declare an emergency.
The salary of the superintendent of public instruction, baseline funding, high-cost students, and regional library cooperative definitions; to provide for a transfer; to provide for reports; to provide an exemption; to provide an effective date; and to declare an emergency.