Burgum presents 2023-25 executive budget proposal that cuts income taxes, addresses workforce and invests in education, infrastructure and other priorities

Proposal includes over $3B for roads, bridges and water infrastructure

Gov. Doug Burgum delivered his 2023-25 Executive Budget Address to the 68th Legislative Assembly on Wednesday, presenting a strategic budget that includes nearly $170 million to address the state’s workforce shortage, increased support for K-12 education and teacher salaries, and over $3 billion for roads, bridges, water projects and other critical infrastructure – all while cutting individual income taxes to save taxpayers an estimated $500 million over two years.

“Today, as we find ourselves in competition with every other state for attracting capital and talent, we need a comprehensive, strategic budget that builds upon our competitive advantages, supports families and communities, attracts and retains a thriving, healthy, well-educated citizenry, and sets North Dakota up for long-term success in the realities of the 21st Century economy,” Burgum said to a joint session of the Legislature, which was meeting for its organizational session before the regular session convenes Jan. 3.

“Our strategy-driven executive budget leverages investments in infrastructure, community and economic development for the future and reduces taxes for workers while tackling our No. 1 barrier to economic growth, our workforce challenge,” he said.

The state’s financial position is strong and its reserves are full, with $718 million in the Budget Stabilization Fund, a projected $1.1 billion unassigned in the Strategic Investment and Improvements Fund (SIIF), over $1.4 billion expected in the general fund’s ending balance by June 30, and an estimated $486 million in Legacy Fund earnings.

With those backstops in place, Burgum is proposing a general fund budget for 2023-25 of just under $5.9 billion, which is $162 million less than the general fund budget when he and Lt. Gov. Brent Sanford took office in December 2016. A huge influx of federal and special funds, formula-driven increases and historic inflationary costs push the total budget proposal to $18.4 billion.

Surrounding states have proposed similar budget increases: 9.1% in Montana, 12.7% in Idaho and 11.6% in South Dakota. North Dakota’s proposed total budget increase is 8.9% compared with the original 2021-23 total budget of $16.9 billion, or a 3.4% increase compared with the total budget of $17.8 billion after including appropriations from the November 2021 special session. Approximately 56% of North Dakota’s budget is driven by funding formulas established to support education, the long-term care sector and Medicaid.

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Epitome Energy announces Grand Forks as new location for soybean crushing plant

Epitome Energy LLC announced Monday that it has selected Grand Forks as the location for a $400 million soybean crushing plant that will have capacity to process up to 42 million bushels of soybeans per year into crude degummed soybean oil, meal and hulls, which will provide economic stability and greater profitability for the region’s farmers.

“Epitome Energy’s plant reinforces our status as a leading producer of soybeans and soy products. This significant investment in our state will add value for soybean growers, support growth in renewable fuels and the livestock industry, and strengthen our overall economy,” Gov. Burgum said. “Remarkably, with this announcement, in less than two years North Dakota has gone from having zero soybean processing to having three planned soybean crushing plants with the capacity to process roughly 75% of our state’s annual soybean production. These are game changers that enhance North Dakota’s leadership in feeding and fueling the world.”

“We are grateful to welcome Epitome Energy to North Dakota,” Commerce Commissioner Josh Teigen said. “The new soybean crushing plant will be a great asset for local farmers and the state’s agricultural economic system as it will create new local market opportunities for soybeans. North Dakota has firmly cemented itself as a soybean powerhouse with three crush facilities announced in 2022 alone. This is a huge win for the Grand Forks Economic Development Council (EDC), and we would like to thank and congratulate them for their success in taking the lead on this project and making North Dakota home to Epitome Energy.”

Epitome Energy estimates that the Grand Forks soybean crushing facility will strengthen farmers’ basis for soybeans by 20 to 25 cents per bushel by enabling farmers to process soybeans closer to home.

“This project will put more money in the pockets of hardworking farmers in the Red River Valley region by helping them reach more markets to meet the growing demand for soybeans,” Epitome Energy Founder and CEO Dennis Egan said. “We are excited to be moving forward with our project in Grand Forks, which is truly becoming an epicenter for agribusiness.”

Epitome Energy has executed a letter of intent for a greenfield site just north of Grand Forks that features full access to rail, freeways and all necessary utilities. Fagen Inc., the largest green energy design-builder in the U.S., will lead engineering and construction. The project is expected to break ground in the summer of 2023, with operations to begin in the fall of 2025.

NDSU announces results of research study on economic impact of agriculture to North Dakota

Gov. Burgum assisted researchers from North Dakota State University on Monday in announcing the results of a study regarding the economic contribution of agriculture to North Dakota.

This first-of-its-kind for NDSU study found that agriculture’s total economic contribution to North Dakota is $30.8 billion annually, with over half of that from crop production at nearly $16 billion.

The study also found that agriculture accounts for 110,480 total jobs in North Dakota, equivalent to 19.2% of all employment in the state.

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Burgum declares winter storm disaster for Nov. 9-11 storm that dropped record snowfall on parts of state

Gov. Burgum issued an executive order Friday declaring a statewide winter storm disaster for central and southeast North Dakota related to a Nov. 9-11 storm that dropped record snowfall on parts of the state, shutting down schools, clogging roadways and knocking out power to thousands.

The executive order directs all state agencies and administrators to maintain recovery resources and capabilities at high levels in order to execute their responsibilities under the State Emergency Operations Plan. State agencies will coordinate with the appropriate federal agencies to make recovery programs available, implement mitigation measures and facilitate restoration of services and infrastructure.

The statewide disaster declaration is a necessary step if the state decides to seek a federal major disaster declaration. Burgum also sent a letter to the Federal Emergency Management Agency seeking an extension to submit a request for a federal declaration as costs and invoices from the storm are still being collected.

During the three-day storm, the National Weather Service in Bismarck reported 17.1 inches of snow on Nov. 10, breaking the previous record for the date of 9.1 inches set in 2012. Heavy, deep snow made some roads impassable, and ice accumulations broke tree branches, snapped power poles and downed power lines, leaving thousands of people without power.

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