We’re now past 40 days with a goal of finishing up in about 70 or 75 days.
We’ve had good evidence of the slogan that “all politics are local” with the Department of Transportation (DOT). A proposal to eliminate eight of the work sites and several driver's license sites brought a lot of people to Bismarck to express their concern. Mayville mayor Don Moen and Councilman Marv Carlson were present to testify before the House Appropriations Committee about the proposal to close the sites in Mayville. Several other affected rural communities also expressed their concern about reducing these services to rural North Dakota. The storm in the northern part of the state this week, is a good example of how a quick storm can shut things down.
Thursday morning, we received an updated financial report from Moody's Analytics and the Office of Management and Budget. As expected, the revenue forecast for the rest of the 15-17 biennium is down even more meaning we must find $46 million dollars of reductions on top of what we've already done. Governor Burgum re-emphasized that he would like to see state employees pay a part of their health insurance reminding us that most in the private sector do so.
Some good news is that oil drilling is increasing and is predicted to return to about 1000 new wells each year. Production will stay at about 900,000 barrels per day, but the ND price may stabilize at $45 per barrel, higher than we've seen over the past couple of years. The state tax on that is 10%, with the money going in to several funds including the Legacy Fund.
For the next two weeks, the Appropriations Committee will continue working on the budgets for the Health Department, the Department of Corrections, Veterans, Arts, and Tobacco Prevention. The proposal to separate environmental issues from the Health Department by creating a new agency called Environmental Quality is a major change and needs a lot of discussion. Oil and chemical handling and spills would be moved to this new agency. The Ag department has some environmental issues also. Would this change also impact restaurant inspections and pipeline safety? What about rural drain fields? Who will inspect restaurants? If the separation is approved there will be many things to work out. An implementation delay is part of the legislation but a study would also be in order. Last Friday, an amendment was proposed to involve representation from agriculture which was missing in the first draft.
When working with the Department of Corrections (DOCR). the mental health treatment always comes into the discussion. Evidence shows that 70% of inmates in our prison system have mental health issues. Should non-violent offenders be locked up, sometimes putting their families at economic risk, or is it better to set up with monitoring and treatment while they continue working? The cost of incarceration is not only the cost of housing prisoners. Children and families often suffer unintended negative consequences creating additional costs.
In 2008, with Measure 3, the voters of ND authorized the creation of the Division of Tobacco Prevention and Control. The current need for funds has brought forth a proposal to eliminate the agency and move some of the funds for a similar program which exists in the Health Department. The shortage of funds created with tax cuts and increased spending over the last several years has led some legislators to believe that there is sufficient support to close the agency and use the funds in other ways. In a four hour hearing on Wednesday morning, we heard from a number of people who support keeping the current Tobacco Control agency funded. Keeping kids from smoking and helping people quit is proven to save huge amounts in future health care costs. The saying of “Pay me now, or pay me later.” Fits this situation.
On Monday, I testified before the House Education Committee to support for the legislation that continues the very successful early childhood, pre-K program. Some of you may remember how the local kindergarten program started in much the same way. Over fifty years ago, Marguerite Walker began teaching five-year old's in her home. After she and others worked with Governor Guy to get the state involved, the kindergarten program moved to the public school.
You can contact me at rholman@nd.gov or call or text at 701-238-1124 Rick Holman
You can follow the legislature and even watch floor sessions on your computer at the following Web site. http://www.legis.nd.gov/assembly/65-2017/regular
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