North Dakota House Bill HB1502

North Dakota 2025-2026 Regular Session

• Introduced: 1/20/25
• Refer: 1/20/25
• Report DNP: 2/5/25

Caption

The growth of the state general fund budget.

Impact

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.