Governor unveils $14.3B budget, ups state spending 5 percent

BISMARCK, N.D. (AP) — North Dakota Gov. Doug Burgum unveiled a $14.3 billion budget on Wednesday that hikes state spending 5 percent, a surprising bump from the first-term Republican governor who had long signaled a thriftier proposal.

Burgum said his plan, presented to a joint session of the House and Senate, invests “in our economy, our workforce and the well-being of people” by offering pay raises for state employees and spending increases on education, human services and infrastructure projects.

The two-year spending blueprint also seeks to replenish more than $500 million of the $800 million in reserves that were used to balance previous budgets. The plan does not seek higher sales or income tax rates.

The proposal includes 4 percent raises in the first year of the budget cycle and 2 percent in the second, with a potential for an additional 2 percent if agencies meet efficiency goals. The budget is based on North Dakota oil prices fetching between $50 and $60 a barrel, and production remaining at 1.3 million barrels daily.

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