041417 Legislative Report #15
Rep. Rick Holman, ND District 20

In the first three days of the week, I’ve met on several conference committees for a total of 15 meetings. I still have a couple more of the larger agencies yet to be assigned, i.e. The Departments of Health and Human Services, two of the larger budgets that impact large numbers of people. Each conference committee is made up of three senators and three house members with two Republicans and one Democrat on each side. Since the Senate and House have differences the role of the committee is to discuss the conflicts and find neutral ground. Once they reach agreement with at least two from each house agreeing, the legislation is returned to each chamber for final approval. If both the Senate and House approve the compromise the bill is sent to the Governor for his signature.

If past history is any indicator, the largest bills will be the last ones done. Higher Education, K-12 Education (DPI), Human Services (DHS), Transportation (DOT) and the catch all budget for the Office of Management and Budget (OMB) will be done during the last days. Because the state constitution requires a balanced budget, it’s only logical that the largest budgets are done last along with transfers from various funds to make ends meet. Different from my experience with past sessions, plans are already in place to maximize withdrawals from those funds including, for the first time, interest from the Legacy fund. Also as a result of Measure 2 on the fall election more funds are available for education from the Foundation Aid fund.

Here’s a list of the larger agencies that will need several conference meetings to find a compromise. The proposed two year budget amounts are also listed.
Health and Human Services. $3.5 billion.
Public Instruction. $2.3 billion.
Higher Education. $2.7 billion
Department of Transportation (DOT). $1.3 billion.
Recreation and Natural Resources $1 billion.
Public Safety. $500 million.
The current total for all agencies is about $13 billion with $4.3 billion coming from the general fund. At this time, projected income for the next two years will not fully cover the costs.

We still have to find some adjustments to balance the budget so over the next week or so, choices need to be made, some which will not be popular. We still have hope to finish up our work during the week after Easter. That will require compromise, but experience tells me that the pressure of spring with nice weather, along with legislator fatigue will get the job done. That will leave about five days of the allowed eighty days available in case we need to return in a year to make adjustments. The legislatively created shortfall in revenue has made our job more complicated. Hopefully, the Ag economy will improve and the increased activity in the oil patch will help bring our budget back in to a more stable situation. Rick Holman