North Dakota Governor Proposes State Venture Fund and Other Programs to Improve the Economy

Gov. John Hoeven today released his 2003-2005 executive budget, stressing key priorities: building the economy and creating opportunity; exercising good fiscal management; and taking care of people.

Press Release
State of North Dakota

"We have challenged all of our agencies to work together, not only to find savings, but to find new and innovative ways to do things," Hoeven said. "We have challenged them to build a budget that funds our priorities and truly serves the people of North Dakota – without a general tax increase."

Smart Growth
To build the state’s economy and create opportunity, Hoeven is launching Smart Growth, a host of innovative and cost-effective programs linking education, job creation and career development to build the state’s economy and communities.

The Smart Growth plan includes funding for the following initiatives, and others:

· An increase in teacher compensation totaling $4,500 for every teacher in North Dakota.

· An increase of 7 ½ percent in per-pupil payments through the Foundation Aid program.

· Significant improvements to school funding equity.

· Full implementation of the higher education roundtable.

· Three new venture capital funds:

o Centers of Excellence Fund – a $5 million fund that will leverage state resources with private and federal funds to create job opportunities through research and education on our campuses

o New Venture Capital Fund – a $10 million fund to help finance new and existing businesses which includes $3 million in technical assistance funding to help businesses succeed

o Seed Capital Fund – a $1 million source of financing to help entrepreneurs in the earliest stages of business creation. Includes funding for IdeaFest, a statewide business-plan competition that will highlight and support the best and brightest ideas North Dakotans have to offer.

· A North Dakota Internship Program to place young people in career-track jobs that will reduce critical employment shortages in growth industries. ($2 million)

· Financial resources to support and partner with the New Economy Initiative (NEI) to more aggressively market North Dakota. ($200,000). IdeaFest is supported through Seed Capital Fund

· Countercyclical payment and promotion program to develop ethanol.

Fiscal Responsibility

"Our budget finds new ways of doing things to generate savings," Hoeven said. "We are spending less money on government bureaucracy so that we can spend more on people and services."

According to Hoeven, the executive budget implements innovative strategies to streamline government and get the job done. The Governor cited a Department of Human Services and Department of Corrections’ plan to share resources for a new women’s prison as an example of streamlining government and doing things differently. The plan saves taxpayers $22 million dollars
and maintains quality care for residents.

Overall, the executive budget reflects less than one percent growth in General Fund expenditures, compared to an average of 8 percent growth in the previous six bienniums. In addition, more than 100 full-time equivalent positions will be eliminated by not filling vacancies and through early
retirement.

"Thirty of 45 agencies will be spending fewer General Fund dollars than in the current biennium," Hoeven said. "Because of this fiscal responsibility and the resulting savings, we are able to provide services to people who need them and fund our priorities for the future."

Taking Care of People

The Governor’s budget both conserves dollars and establishes programs and policies that serve the people of North Dakota, notably a prescription drug program for seniors.

Healthy SeniorsRx will provide prescription drug discounts to any citizen age 65 or older making 210 percent of the federal poverty level, or about $25,000 annually for a couple. The program will be delivered conveniently through local pharmacies.

"No challenge has been greater than the high cost of prescription drugs for our seniors," Hoeven said. "We have waited long enough for a federal prescription drug program for our seniors. Our seniors have waited long enough. Now it’s time to act."

When fully enrolled, an estimated 22,000 North Dakota seniors will be eligible to save, on average, between one-third and two-thirds of the cost of prescription drugs.

The executive budget also includes enhanced funding for:

· The statewide tobacco cessation and prevention program.

· A Healthy North Dakota suicide prevention program.

· Increased funding of nursing homes of more than 9 percent.

· Expanded Drug Courts to reclaim offenders and save taxpayer dollars.

· Increased funding for the fight against drug abuse.

"In our executive budget, we have laid out essential programs and policies to build our future in North Dakota," Hoeven said. "Our Smart Growth initiatives will build our economy and create opportunities. Good fiscal management will ensure that every taxpayer dollar is well spent. And we are committed to taking care of people for the best quality of life possible. We are building our future in North Dakota for tomorrow by doing things differently today."