State Budgets: North Dakota Debates How to Spend Growing Surplus December 27, 2008 Joseph Bishop-Henchman Joseph Bishop-Henchman North Dakota’s government has been running consistent surpluses, as we documented in our report on Measure 2, a proposal to cut income taxes that did not pass in November. The current biennial budget will end with a $392 million surplus, even after a $111 million transfer to the state’s already $600 million rainy day fund. Gov. John Hoeven (R) recently proposed spending the surplus on capital projects, and unveiled a $2.75 billion budget for 2009-11 (a 9 percent increase over the previous budget) that includes $100 million in targeted income tax reductions, $300 million in property tax reductions, and $130 million in increased K-12 spending. Analysts report that even if oil prices remain at $40 a barrel for the next two years, North Dakota’s combined surplus will still exceed $800 million. More on North Dakota here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics North Dakota Tags State Tax and Spending Policy