January 11, 2019 - Keeping People Warm 24/7
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It was a chilly January week in North Dakota, but thanks to lignite plants like Milton R. Young Station, folks stayed warm despite sub-zero wind chills outside.
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Prairie Dog Hearing Set for Tuesday
A Hub City and infrastructure funding package dubbed "Operation Prairie Dog" will have its first hearing before a legislative committee next Tuesday, January 15.
The legislation,
HB 1066, revises the formula for the distribution of the gross production tax on oil and gas in a way that will fund Hub Cities and other oil-impacted communities in the 2019-2021 biennium at approximately the same rate as the current biennium. The funding measure, the development of which was led by Senator Rich Wardner, R-Dickinson, would also establish “buckets” for non-oil producing cities, counties and township to support infrastructure needs.
The bill’s prime House sponsor, Rep. Mike Nathe, R-Bismarck, said he expects a large crowd when the hearing is held at 10 a.m. Tuesday before the House Finance and Taxation Committee in the Brynhild Haugland Room at the Capitol.
Click
here to listen to Nathe’s comments.
At least two Western Dakota Energy Association board members will testify in support of the bill – Bowman Mayor Lyn James and McKenzie County Commissioner Doug Nordby.
Funding that would be provided to non-oil cities is based on population and rate of growth, while county/township dollars would be allocated based on the County Road and Bridge Funding Needs Study compiled by the Upper Great Plains Transportation Institute.
Click
here to see projected city payouts, and
here to see county amounts.
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Burgum Questions Revenue Forecast
Governor Doug Burgum believes some of the numbers in the ND Legislature’s state revenue forecast don’t make sense.
Lawmakers this week heard a presentation from IHS Markit, a firm hired to provide a second opinion on revenue the state will receive from taxes and other sources. The forecast, which was approved by both House and Senate Appropriations Committees, predicts $42.50 per barrel for North Dakota oil in the 2019-21 biennium, considerably lower than Gov. Burgum’s budget which assumes a $46 to $50 per barrel price the next two years.
In an interview on the radio program,
Energy Matters, Burgum said the tax revenue numbers compiled by the legislature’s consultant conflict with one another.
Click
here to listen to Burgum’s comments.
Burgum said the consultant’s projections about oil well completions are also unrealistic.
Click
here to listen to Burgum’s comments.
The legislature will take another look at its revenue forecast in March.
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Voters Approve/Reject School Bond Issues
Watford City Voters Approve Bond Referendum
Voters in McKenzie County Public School District #1 provided a resounding “yes” to both ballot questions Tuesday, allowing the district to build a new elementary school while providing the district the ability to meet projected growth with funding for future school building needs.
The first question on the ballot addressing building a new elementary school garnered 80.3 percent of the vote. The second item to approve funding for future school infrastructure needs received 71.3 percent. Only 60 percent was needed to pass the changes.
“Watford City continues to strongly support the growing community we live in,” said Valerie Kummer, co-chair of the “Vote Yes” Committee. “Funding the next elementary school and future school facility needs gives this town a strong foundation to build a long-term thriving community. A great school system is just one of the draws for incoming families, but it is an important one.”
The school board will meet on Jan. 14 to review final vote totals and issue official approval.
Click
here for more additional details about the project.
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Williston School Bond Narrowly Rejected
In a second defeat in less a year, voters in Williston Public School District 1 rejected plans to build and renovate schools.
Unofficial vote totals show 58.7 percent approved the measure to build two new elementary schools, expand the high school and renovate other schools in the district. A separate measure on the ballot to increase the building fund levy from 10 mills to 20 mills received 57.5 percent of the vote. Both proposals required 60 percent approval to pass.
The final vote tally will not be official until Monday evening when the school board meets. Absentee ballots could still come in so vote totals could change.
District 1 school board president, Joanna Baltes, said in an article published in the
Williston Herald, that the results were “pretty heartbreaking.”
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Sales Tax Option for School Construction
A Williston legislator plans to introduce a bill that would give North Dakota school districts the option of using sales tax to help pay for school construction.
Rep. Pat Hatlestad said his legislation would allow communities to levy up to a one-cent sales tax increase if the school district’s voters approve.
Click
here to listen to Hatlestad’s comments.
Hatlestad, a retired school superintendent, said the sales tax was previously used by North Dakota schools to fund construction before the authority to do so was taken away by the legislature.
Click
here to listen to Hatlestad’s comments.
In addition to the sales tax proposal, Hatlestad has also introduced
HB 1353 that would establish a school building and renovation grant fund using money from the common schools trust fund.
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Bill to Facilitate/Fund School Safety Plans
Legislation being considered in North Dakota would provide a funding option for school safety plans.
SB 2052, introduced by Senator Don Schaible, R-Mott, would allow school districts to assess up to five mills in property taxes to fund a safety plan. Schaible said the elements of the plan would be determined by the local district.
Click
here to listen to Schaible’s comments.
The bill was held over for additional discussion in the Senate Education Committee. Schaible, who chairs the committee, said an amendment may be needed that would allow districts to keep all or a portion of the safety plan confidential to protect the students.
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"Share the Wealth" Tax Reduction Proposed
A bill introduced by the chairman of the North Dakota House Finance and Taxation Committee would devote a portion of the earnings from the state Legacy Fund to reduce personal and corporate income taxes.
Rep. Craig Headland, R-Montpelier, said the state constitution prohibits payments to citizens unlike other states such as Alaska that pay oil dividends directly to residents. But Headland said earnings from the Legacy Fund could be used to offset the income taxes owed by North Dakota citizens.
Click
here to listen to Headland’s comments.
Headland said if his legislation passes, a day could come when there would be sufficient Legacy Fund earnings to reduce income taxes to zero.
Click
here to listen to Headland’s comments.
The balance in the state’s Legacy Fund, which is funded by oil tax revenue, is approaching $6 billion.
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Sunday Closing Law Gets Another Look
North Dakota legislators are being asked to take another look at repealing a state law that requires some businesses to be closed Sunday morning.
Rep. Shannon Roers-Jones, R-Fargo, has introduced
HB 1097 that would eliminate so-called Blue Laws that require businesses to be closed Sundays between 12:00 a.m. and 12:00 p.m. She said businesses should be allowed to choose whether to open Sunday mornings, and points out the law as it currently stands is not applied equally.
Click
here to listen to Roers-Jones’ comments.
Similar legislation was narrowly defeated by the 2017 Legislature.
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Bill to Address Skilled Workforce Needs
Legislation has been introduced that would establish a skilled workforce student grant program in North Dakota.
HB 1171, sponsored by Rep. Jim Grueneich, R-Jamestown, directs the Bank of North Dakota to establish a grant program to attract and retain people, who would receive training and education to fill job openings for professional or technical skills in high demand.
Grueneich said it’s hoped the program would fill the need for mechanics, electricians and other skilled occupations in North Dakota.
Click
here to listen to Grueneich’s comments.
Grueneich said there’s a lot of interest among employers who would essentially guarantee students a job when they complete their education and training.
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Hospital Loan Program Changes Proposed
A medical facility infrastructure loan fund established during the height of the oil boom may soon benefit healthcare facilities outside the oil-producing region.
The fund, established through the Bank of North Dakota by the 2013 Legislature, targeted $50 million in low interest loans to western counties to address growing needs related to expansion of the energy industry. Loans went to facilities in Bowman, Dickinson, Hazen, Stanley, Tioga and Watford City.
Kelvin Hullet, market manager for the Bank of North Dakota, said loan payments from the six facilities are now replenishing the fund so the bank has about $4 million available for new loans.
SB 2099 would remove language that prioritizes loans to oil-producing counties in the state. This measure would also repeal a requirement for a task force to review loan applications. Instead, Hullet said the bank will work closely with the ND Hospital Association and others to manage the loan program.
The bill received unanimous approve in the Senate Industry, Business and Labor Committee, and will be considered Monday by the full Senate.
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Bill Would Raise North Dakota Speed Limits
The North Dakota Legislature will consider a bill that would raise speed limits on divided four-lane highways in the state.
HB 1264, introduced by Rep. Jake Blum, R-Grand Forks, would raise the speed limit on North Dakota interstate highways to 80 mph, and increase it to 75 mph on other divided multi-lane highways.
Blum said other states have raised speed limits with no adverse effects on public safety, and North Dakota should too.
Click
here to listen to Blum’s comments.
Blum’s legislation would continue to provide a local control option that allows larger cities to reduce the speed limit through their communities.
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Spotlight on 100 years: Bank of North Dakota
New Book Covers BND's First Century of Service
This year, the only state-owned bank in the nation will celebrate 100 years in business with the release of the book, “The Bank of North Dakota: From Surviving to Thriving.”
The new release chronicles the bank’s first century covering a history rich in drama, failure and ultimately success.
Although other states have attempted to create a state-owned bank, the Bank of North Dakota is the only one active today. It grew out of a farm protest movement in the 1910s when North Dakota farmers were getting low grain prices from elevators, high interest rates from banks and high transportation rates from railroads.
The Bank was part of the Nonpartisan League program approved by the legislature on Feb. 25, 1919, creating the Industrial Commission, State Mill and Elevator and the Bank of North Dakota.
Today, the bank is considered a crucial arm for economic development in North Dakota and partners with local banks and credit unions to meet its mission.
Authored by longtime North Dakota journalist Mike Jacobs, the book is available for online ordering at the Bismarck State College
bookstore.
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NDPC Offers Emerging Leaders Training
The North Dakota Petroleum Council is offering a second series of leadership training in early February. The two-day program provides training in topics critical to a new supervisor or manager including communication and personality styles, coaching and counseling methods, workforce empowerment, managing change and much more.
Two sessions of the classes are scheduled Feb. 4-5 and 6-7.
Click
here to register for the Feb. 4-5 session.
Click
here to register for the Feb. 6-7 session.
Click
here for an informative brochure on the training.
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Quick Connect
- Lawmakers set early revenue figures: Lower oil, gas tax -- Fargo Forum
- Legacy Fund: ‘Numbers game’ is about more than money -- Crosby Journal
- Tribal Chairman shares wishes for 2019 Legislative session -- KX News
- Judge endorses water permit for Davis Refinery despite opposition -- Associated Press
- Attorney General's office asks judge to dismiss tribe’s voter ID lawsuit -- Associated Press
- Judge allows four tribes to challenge Corps’ Dakota Access study -- Associated Press
- Funding priorities: Rep. Mike Lefor discusses goals for legislative session -- Dickinson Press
- Group forms ‘Boomtown Alliance’ to link Odessa, Texas, to Williston, ND -- Williston Herald
- Gov. Burgum declines salary again, acting on 2016 campaign pledge -- Bismarck Tribune
- Williams County named wealthiest in the state, average income nearly $90K -- KX News
- U-Mary to create workforce development program with $2 million donation -- Bismarck Tribune
- Shutdown will hit North Dakota agriculture sector with stalled trade aid -- Williston Herald
- MegaKota: Thousands sign online petition for ND-SD merger into new state -- Fargo Forum
- Meeting scheduled in Parshall to discuss ND Highway 37 project -- Minot Daily News
- 2,430 citations issued during statewide Click-it-or-Ticket enforcement campaign -- ND DOT
- Two years after Standing Rock encampment, scars of the protest remain -- Inside Sources
- Report tallies the economic toll of "keep-it-in-the-ground" activism -- Energy in Depth
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Factoid of the Week -- Exploding Enrollment
Enrollment projections for Williston School District #1 and McKenzie Co. School District #1 are astounding. Current enrollment in Williston is 4,074, but in just ten years it grows to 6,503. The increase would exceed total enrollment in the years 2000 - 2011. The story is the same in Watford City. Current enrollment is 1,814, but by 2028 is projected to grow to 3,792.
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January 17
Dickinson
January 18
Bismarck
January 22
Lignite Energy Council legislative reception
Ramkota - Bismarck
January 22
Bismarck
January 28
Capitol
January 29-31
Grand Forks
January 30 - February 1
Minot
February 9
Williston
February 12-13
Bismarck
February 25-26
Dickinson
July 16-17
Bismarck
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Oil prices and rig count
January 11, 2019
WTI Crude: $51.59
Brent Crude: $60.48
Natural Gas: $3.10
North Dakota Active Rigs: 67 (up 4)
1/11
/2018
-- 54 rigs
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Geoff Simon
Editor/Executive Director
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