N.D. Senate Update: Jan. 25, 2021

MONDAY: In Appropriations, we began the week with the Department of Transportation budget. This agency’s funding comes from special funds derived from a combination of federal funds along with income generated from the public use of services. This biennium the department completed 345 construction projects. Motor vehicle and driver license data systems have been combined and improved. Challenges for the department include saving lives, modernizing funding for roads and bridges, and improving conditions of existing roads and bridges. Costs to construct roads continue high with major roads costing $1.5 million/mile while preventative maintenance averages $187,000 per mile. North Dakota has an 18-month shovel ready list of road improvements.

TUESDAY: We held a joint hearing with House Appropriations to hear revenue forecasts from Moodys and IHS Markit. The executive branch contracts with Moodys and the legislative branch with IHS Markit. IHS estimates improvement in the ND economy in the second half of the year. Their estimate comes from anticipated sales and use tax, motor vehicle excise tax, individual income tax and corporate income tax. The roll out of the vaccine will have a positive impact in the growth of the economy. Oil prices are estimated to range from $40 to $52/barrel and as that price increases, so will revenue to several funds. IHS market provided a comprehensive report on our agriculture economy. Farm size is increasing with large farms of 2000 acres or more increasing by 5.3 million acres. Crop prices are anticipated to be stronger thus increasing optimism across all sectors.

While COVID-19 has disrupted the market for livestock and the meat industry, ranchers are rebuilding their inventory.

Aeronautics Commission: They presented their budget request Tuesday morning. This commission supports the aviation community and ensures the cost-effective advancement of aviation in the state. It also provides infrastructure grant funding to 89 public service airports across the state. Overall commercial boardings have dropped significantly due to COVID.

We also heard the budget for the Commission on Legal Counsel for the Indigents. This commission provides attorney services to indigent persons. There are guidelines in place as to when the court must appoint counsel to individuals unable to secure their own legal services.

The Council on the Arts presented a budget that will ensure communities will have opportunities to secure grants to enable all areas of the state arts activities to enhance lives.

WEDNESDAY: The budget for the Industrial Commission encompasses several divisions important to the functioning of our state. Included are the Bank of North Dakota, State Mill and Elevator, Public Finance Authority, Housing Finance Authority, Department of Mineral Resources, North Dakota Building Authority, Lignite Research Program, Oil and Gas Research, Renewable energy Program, North Dakota Pipeline Authority, Outdoor Heritage Fund and Western Area Water Supply. The scope of these divisions is too extensive to report on here, but you can find further information on the Industrial Commission’s Website.

The Department of Trust Lands mission is to manage assets in several trust funds to benefit school districts and higher education. They also manage the Strategic Investment and Improvement Fund, Coal Development Trust fund, Capitol Building Fund, Indian Cultural Education Fund and the Theodore Roosevelt Presidential Library and Museum Endowment. In addition, they operate the unclaimed property act and the Energy Infrastructure and Impact Office. This, again, is an all-encompassing agency.

THURSDAY: The Department of Health’s budget request was heard. Their goals focus on healthy, vibrant communities, improving systems of care, as well as COVID response. One of their biggest initiatives this year has been their response to the COVID issues. Our public health offices function through this department as well as all EMS services and funding. Tobacco prevention and control are also in their jurisdiction as well as supplemental nutrition program for women, infants, and children (WIC). The medical marijuana program is under their jurisdiction with 4,354 qualifying patients in the program.

The Department of Environmental Quality is a rather new creation that was carved out of the Department of Health a few years ago. They have five divisions that respond to anything from clean air to waste management.

FRIDAY: We began the day with a joint hearing with the House Appropriations to merge the revenue forecasts from Moodys and HIS Market into workable numbers for appropriators to use as we finish up our budget requests for the first half of the session. The merging of these two forecasts indicate we should have more revenues in the next biennium than earlier anticipated. Overall oil production is anticipated to drop from 1.2 million barrels per day to 1 million barrels per day with overall North Dakota prices in the $40 per barrel range.

Department of Corrections and Rehabilitation: That budget was presented Friday morning with information that the adult population incarcerated in the state is 1,543 with 6,605 incarcerated in interstate compact facilities and community facilities. There is concern that COVID has increased county/local facility counts as the state facilities are not receiving inmates at this time. Facilities operated by the state include the State Penitentiary in Bismarck, James River Correctional facility in Jamestown, Missouri River minimal custody facility in Bismarck, and Woman’s facility in New England. There is a request to move some women from New England to the Youth Correctional Center in Mandan so they can be closer to families. Currently YCC has closed cottages because of low census and would have to do some renovation but could house some females there.

Corrections also operates Roughrider Industries which provides training and work activities for minimum security inmates. Products made there include furniture for state agencies, upholstery, license plates, inmate clothing, military garments, plastic bags and cattle panels.

We heard that the number of youth committed for services has declined. Research indicates youth are better served in their communities, but a few of us on the committee see that there are significant gaps in those community services, thus increasing incidents in schools and in communities. There is a bill pending that would redesign juvenile services. That bill is over 100 pages and will bring much discussion as the session moves along.

OVERALL: The Senate has held floor sessions each day to vote on bills out of committees. Most votes have been unanimous because bills have been small changes in current laws. I also testified on a bill I co-sponsored with Rep. Devlin on curbing the governor’s executive order power.

We still have the mask mandate for all parts of the capitol where the legislature has jurisdiction. Whether the Governor’s relaxing of that mandate will change our policy, remains to be seen. We also can participate three mornings a week in rapid COVID testing.

The first two weeks have moved very quickly. We appreciate hearing from you and hope you continue to connect through phone, text, or e-mail. I also hope many of you can join in virtually to listen to our House and Senate voting sessions every afternoon and our committee meetings and work.

You may contact me at [email protected] or call or text me at (701) 302-0355. Have a great week!