Dakota Beacon

THE 2021 LEGISLATURE ended after Day 76 and approved a $17 billion budget for the 2021-23 biennium — $2.5 billion more than the current budget.  The general fund budget was increased to $5 billion from $4.8 billion.  The Legislature also approved $680 million of infrastructure bonds.

THE LEGACY FUND has been mandated by the Legislature to invest 20% of future oil tax collections in loans and equities in ND.  In addition, the Legislature has approved a formula for spending Legacy Fund earnings.  The first $150 million will go toward repaying the bonds mentioned above and funding the retirement system.  The next $60 million goes to highway funding.  The remaining money will be used for discretionary programs such as tax relief, workforce development and research.  Politicians couldn’t keep their hands off the earnings — some of the spending is for costs that would otherwise be paid from the general fund.  So much for long-term foresight and projects that broaden the state’s future.  The Roosevelt Library is an example of that type of project.

A NOTE OF DISSENT  A GF Herald editorial was generally approving of the legislative decisions for spending Legacy Fund earnings, particularly infrastructure projects.  The editorial shared some important guidelines: It said “earnings should only be used to diversify the state’s economy” and “should never go directly to the people, but rather to public projects that benefit the people.  For example, no Legacy dollars should be used for tax relief.”  That directly contradicts the Legislature’s decision to use some of the money for tax relief.

HELP FOR COAL  The Legislature passed numerous bills designed to prop up the coal industry — they are seen as an effort to offset federal measures to limit the industry.  Chief among the bills is a five-year, $100 million tax holiday.  New credits and loans are also available to the industry, the most important makes a $250 million line of credit available for Project Tundra, a project for underground storage of carbon emissions from coal-fired plants.  Critics of these bills see a wasteful effort to maintain a dying industry.  Proponents think there is a chance that in four or five years coal will provide base electric power with low emissions.  Another large push for the bills, coal plants are critical to the economy and employment of several ND counties.

ADVANTAGE DAPL  In the back-and-forth battle over the Dakota Access Pipeline, the advantage constantly shifts between the pipeline owners and the Standing Rock Sioux, who have taken legal actions to close the pipeline.  This week, it was advantage owners.  The Biden administration has reiterated that the DAPL may continue to operate while the Corps of Engineers conducts its environmental review.  The attorneys for Standing Rock called the decision “baffling.”

OMDAHL’S MINORITY VIEW   Plans for the $60 million Buffalo City Park in Jamestown raised widespread skepticism outside that area  The Legislature declined to fund a related $5 million grant.  One voice, however, spoke up in support of the project, that was GF Herald columnist Lloyd Omdahl.  While some have referred to the project as ND’s “Disney Land,” Omdahl was untroubled and said the huge project “could be a big plus for the state.”  He dismissed concern about the $5 million saying it was “not big enough to be worrisome” and said the Legislature should keep its nose out of the state’s investment decisions.  That job, in his opinion, should be left to investment professionals.

T. R. LIBRARY BECOMING A REALITY   Plans for the T. Roosevelt Library in Medora are charging ahead.  A high-powered foundation board includes names such as Walton and Roosevelt.  A Forum article said a two-year construction process would begin in 2023 and an opening is planned for 2025.  The Foundation has raised $100 million for construction, but it’s clear more money will be needed to complete and outfit the library.  The state of ND has provided a $50 million operating endowment.

MAYVILLE STATE UNIVERSITY provided an example of unnecessary duplication in ND’s university system by starting a new program leading to a degree in agribusiness.  Just 60 miles down the road is a much larger university with a history of specialization in agriculture and related economics.

THE MID-AMERICA BUSINESS CONDITIONS INDEX (which includes ND) roared back to life in April with a reading of 73.9 — the highest in its three decade history.  Any score above 50 on the survey’s indexes suggests growth, while a score below 50 suggests recession.  In a similar survey ND’s index jumped to 74.3 in April from 69.3 in March.

COOL-DOWN IN FARGO  More than 90% of the U.S. has warmer normal temperatures now than 10 years ago.  Fargo is an exception, its new normal is a tenth of degree (essentially unchanged) cooler than the old one.

SITTING BULL (d. 1890) was initiated into the ND Native American Hall of Honor.  Representatives of ND’s five federally recognized tribes selected the legendary figure.  The three other 2021 inductees are contemporary Indian leaders.

PROBLEMS PILING UP  SD Attorney General Jason Ravnsborg was looking forward to receiving his “bird colonel” wings in the U.S. Army Reserve and made an announcement in that regard last month.  It wasn’t to be — his promotion was blocked because he is facing charges for striking and killing a man while driving at night on a SD highway.  He will go to court next week.  Army Reserve leaders will consider the results of the trial as will the SD Legislature, which is considering his impeachment.

DAKTOIDS:  House Majority Leader Chet Pollert, R-Carrington, said 2021 was "probably the toughest session that I've ever been a part of" due to the pandemic . . . Both ND teams missed their noisy arenas in Saturday’s FCS quarterfinals held in other states:  Sam Houston 24, NDSU 20; James Madison 34, UND 21 . . . The NDSU Foundation surpassed a $400 million fundraising goal including $75 million from Robert and Sheila Challey, the latest single donation in NDSU history.