Hoeven: Updated Forecast Shows Revenue Projections On Track

Hoeven: Updated Forecast Shows Revenue Projections On Track

BISMARCK, N.D. - Gov. John Hoeven today said the new March revenue forecast shows that the state's projections are on track.

"Economy.com, the state's independent financial consulting firm, has updated our projections showing improved revenue growth for the rest of the current as well as the next biennium," Hoeven said. "The data show that we will have an additional $43 million in revenues through the 2005-2007 biennium."

Pam Sharp, executive director of the Office of Management and Budget said, "Today's figures confirm the growth we anticipated in our November projections, even while we are continuing to take a conservative approach in our revenue forecasting."

Hoeven's Executive budget set aside $61 million in reserves. With the new forecast, he said, the state could increase that reserve and still fund the state's priorities, without raising taxes.

"This new fiscal situation means we are in a strong position to fund the priorities we outlined in our executive budget in January," Hoeven said. "That means specifically, education funding, including teacher compensation; Centers of Excellence and additional pay equity for public employees.

In addition, Hoeven said the state has the resources to implement the Homestead Tax Credit for seniors immediately, rather than delay for two years and also to restore $1 million in the Department of Human Services budget for prescription drugs assistance for seniors.

"We don't need to ask our seniors to wait until 2007 for property tax relief and we don't have to ask them to forego assistance with prescription drugs," Hoeven said. "We clearly have the revenues to provide that relief now."

Hoeven said that with the updated projections, the Legislature is clearly in a position to deliver a strong plan for the people of North Dakota.

http://www.governor.state.nd.us/media/news-releases/2005/03/050307.html