BISMARCK, N.D. (AP) - The North Dakota Legislature’s Republican majority unveiled $280 million plan Thursday aimed at rebuilding infrastructure projects outside of the state’s oil patch.
“We need to make sure we are meeting the needs of the state,” said Senate Majority Leader Rich Warder, flanked by GOP lawmakers at the state Capitol. “This is not for swimming pools, water parks or buildings.”
The proposal follows some grumbling non-oil producing lawmakers that the booming western part of the state was getting too large a share of the money from oil. They wanted a bigger share of oil tax revenues for their projects back home.
The proposal would reconfigure oil tax distributions to set aside $115 million for counties and an equal amount for cities. It also would set aside $50 million for airport projects.
Wardner, in an interview, said communities across the state face big and expensive infrastructure projects, such as roads, bridges and water and sewer systems.
“This isn’t going to be a big dent but it gets us going,” he said.
Under the plan, the state’s biggest city of Fargo would get about $25 million, followed by Bismarck at $16 million. Grand Forks and West Fargo each would get about $12 million.
The draft legislation assumes that that oil production will hold at the current level of 1.2 million barrels daily, and at a price of $52.50. North Dakota oil was fetching about $12 more than that on Thursday.
The amount paid to cities and counties would be “pro-rated” if oil tax revenues slide, Wardner said.
Funding for counties and cities in western North Dakota’s oil producing area, including the so-called hub cities of Williston, Minot and Wardner’s hometown of Dickinson, will continue at current levels or more, if oil production continues to grow.
The Legislature in in 2015 approved a one-time $1.4 billion spending plan to address problems tied to the oil boom in the western part of the state.
“Now is the time to start funding for the infrastructure for the rest of the state,” Bismarck GOP Rep. Mike Nathe said.
The current proposal was created after numerous meetings between lawmakers and local officials over the past several months. GOP lawmakers said the bill will be a priority for the Legislature when it reconvenes in January
Republicans wield supermajority control in the Legislature.
GOP Gov. Doug Burgum said in a statement that he is still analyzing the plan and “some components appear promising.” The first-term governor has promised to control what he has called “runaway spending” by state lawmakers.
The plan does not tap interest from Legacy Fund approved by voters eight years ago. It now holds more than $5.2 billion, and is expected to have about $400 million in earnings that could be considered in the next budget cycle.
Wardner and other GOP lawmakers have left open the possibility of using the earnings to further fund infrastructure projects.
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