BURGUMPRESENTSBUDGETPROPOSALTOLEGISLATIVELEADERS

Nowatzki,MiketoMike

5:08PM

NEWS:FORIMMEDIATERELEASEContact:MikeNowatzki
Jan.16,2017701.328.2424

BURGUMPRESENTSBUDGETPROPOSAL
TOLEGISLATIVELEADERS

BISMARCKGov.DougBurgumpresentedlegisla veleadersMondaywithanexecu vebudgetproposalthatrecommends

addi onalcutsandrealignsspendingpriori estospurinnova on,crea vityandthereinven onofgovernment.

Burgumrecommendsongoingspendingof$4.62billion,orabout$159millionlessthanthe201719budgetproposedbyGov.
JackDalrympleinearlyDecember.

Gov.Dalrymplesbudgetwasagoodstar ngpoint.Unfortunately,revenuescon nuetofallshortofprojec ons,alreadylagging

morethan$15millionbehindNovembersrevisedforecast,Burgumsaid.Mybudgetproposalreectsthisrealitywhile
priori zingK12educa onandsupportforourstatesmostvulnerablepeople.

Thestructurallybalancedbudgetwouldcushionthegeneralfundwithanendingbalanceofapproximately$100million,including
a$90milliontransferfromtheStrategicInvestmentandImprovementsFund(SIIF).

Achievingthatposi vebalancerequiredndingabout$100millioninfurthersavings,includinganaddi onal5percent,$31

millionreduc ontohighereduca onandanaddi onal$19millionincutstostateagencies.Thetotalreduc onswould
necessitateelimina ngabout633full meposi ons.

Tohelposettheaddi onalreduc ontohighereduca on,Burgumproposesincreasingfundingfrom$3millionto$10millionfor

highereduca onchallengegrants,whichwillgenerate$20millioninmatchingfundsthroughpublicprivatepartnerships.

Inthesecondyearofthebiennium,Burgumsbudgetwouldeliminate1percentincreasesinthreeareas:stateandcampus
employeesalaries,theperpupilpaymentforK12schoolsandanina onaryadjustmentforMedicaidproviders.

Stateemployeeswouldpay5percentoftheirhealthinsurancepremiums,savingthestate$11millionandengagingstate
employeesintherisingcostsofhealthcare.

Thesemeasures,whiledicultintheshortterm,willposi onourstateforlongtermsuccesswithaleanerbudgetthatismore
adaptabletovola leswingsincommodityprices,Burgumsaid.

ThebudgetreplenishestherainydayBudgetStabiliza onFundwitha$300milliontransferfromtheTaxReliefFund.Dalrymples
budgethadalsoproposeda$154milliontransferfromtheSIIFtotheBudgetStabiliza onFund,butBurgumsbudgetremoves
thattransfer,aswellasremovesa$25milliontransferfromtheSIIFtoValleyCityStateUniversityforanewCommunica onsand
FineArtsbuilding.

Weneedtothinkstrategicallyduringthenextinterimabouthowwedeliverhighereduca ontostudentsthroughexis ng
infrastructure,Burgumsaid.

BurgumalsorecommendsnotusingtheSIIFtorepaythe$17millionborrowedfromtheBankofNorthDakotaforcostsrelatedto
theDakotaAccessPipelineprotests.Thestatewillseekreimbursementforthosecostsfromthefederalgovernmentandother
responsiblepar es.

Inaddi on,hisproposedbudgetreducesthetransferofBankofNorthDakotaprotstothegeneralfundfrom$200millionto
$140million,asthestatehaspreviouslyu lized$100milliontocoverrevenueshorallsinthecurrentbiennium.