McKenzie County Farmer - Latest News

M.K. French
Farmer Staff Writer

“What I am concerned about is spending wisely and making sure we are investing strategically to make the best use of tax dollars now and in the future.” Governor Kelly Armstrong has come out strong on fiscal concerns in the first month of his administration. The Governor presented his $19.89 billion budget proposal for the 2025-27 biennium to the Joint Appropriations Committee of the Legislature on Wednesday, January 15, outlining a billion-dollar investment: “After being sworn in on December 15th, we added a billion dollars in new investment in infrastructure, education, and tax relief.” In his address Governor Armstrong emphasized the careful evaluation his administration conducted during the first month in office to ensure responsible spending.
A significant portion of the budget is dedicated to property tax relief. The Governor’s plan includes a property tax credit of $1,550 per year for each primary resident’s next biennium, funded by a combination of general fund dollars and legacy fund earnings. This aims to put the majority of primary residences in North Dakota on a path to zero property taxes within the next decade. Summarizing the commitment to this goal, Armstrong stated, “this plan is real relief and it is real reform. It’s responsible, achievable, and durable.”
Infrastructure improvements also formed a significant portion of the Governor’s remarks, with Armstrong stating that the budget proposes $464 million in bonding for construction projects, including $300 million for a new state hospital in Jamestown and $120 million for airport projects in Fargo, Grand Forks, and Dickinson.
Another key area of Armstrong’s budget address focused on Education. The Governor noted that $44.3 million is dedicated to establishing an education savings account program to expand educational opportunities for students. Additionally, Armstrong pledged $50 million for higher education challenge grants, as well as 2% annual increases in the K-12 integrated formula at a cost of $60 million.
Armstrong also focused on corrections and behavioral health in his address. In the area of corrections, he highlighted an allocation of $16.1 million to staff and operate the new expansion at the Grand Forks County Correction Center. The Governor also spoke to the need for change in behavioral health, proposing $19.2 million for those programs: “We know we can’t build our way out of incarceration. We need practical solutions that will increase access to services and not rely so much on our jails and prisons as treatment centers.”
To achieve these ambitious goals, Governor Armstrong noted that his office made significant cuts. Armstrong’s administration recommended a reduction of full time employees (FTEs) from 610 in the previous administration down to 530. He also boasted a $600 million cut in spending from the previous administration. The Governor emphasized that these cuts were implemented without compromising core government functions. Overall, Governor Armstrong’s budget proposal seems to represent a significant shift in priorities for North Dakota. However, the Governor noted that achieving these goals will require a balancing act, with measured decisions regarding cuts made in other areas to fund these initiatives.

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