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-- one state that has a different kind of problem is North Dakota but they're problem.
What to do -- all their money.
The peace garden state trying to grow pro business environment and they have done it they are running a budget surplus and have an unemployment rate of below 4%.
The guy now in charge is governor Jack Dalrymple and he joins us now.
Congratulations on getting offense welcome -- office.
You've got a different kind of a problem people are saying you got money you need to spend it on programs how do you maintain your surplus and spend it wisely.
Well that's that is kind of a unique problem.
For North Dakota Brandon and I must say we have been getting a lot of questions from around the country on.
Why we are so different out here.
That if it is a combination of things.
Yes we have had.
In our oil and gas industry you've also had good success in agriculture.
But really the real reason is we built.
A broad economic base over the last ten years.
And we've really -- get our money carefully in our state government we we do not spend.
Now more than we -- and and we have no general obligation debt whatsoever.
It is a -- you're based economy -- it was a decade ago but it is still heavily commodity and agricultural based.
We talked a lot about it commodity prices -- -- said are all up.
Oil and gas also up is this really a sweet spot for North Dakota.
Well we are determined to be careful about that and we have so side over a billion dollars in reserves.
And for our state.
This small like ours that's a lot of money.
We intend to -- that reserve further in the coming two years.
We want to be ready.
In case oil -- -- or.
We are actually means your -- go down that that's not -- -- our economy.
In I think debt that is the secret to keeping -- state moving forward.
To my previous point though we're starting to see already some Democrats in the state legislator said we've got more money let's spend it on social programs.
It's harder to keep salaries in line.
Right people demanding increases when they see that the state has a surplus.
How do you push back on some of these interest and say listen it's good now but we have to save it for rainy day because -- other states governor.
Simply did not.
Well the argument that we're making now is that the proper use of these reserve funds is investing in the infrastructure.
And we may large proposal to invest money in roads bridges.
And in the infrastructure -- colleges and universities.
We think that those kinds of investments will pay back to us over time.
And they do not create a higher pace of spending that we have to worry about down the road.
That really is the east and that build up pierce spending -- overtime and lose control of it.
Let's going to that infrastructure argument for a bit because we have debated and discussed on this program greatly the idea of infrastructure not as a cost.
But as an investment.
When you look at the numbers governor how do you say to the people listen.
This is not a shovel ready project this is not filling a hole tell us why infrastructure.
He's a good investment that pays itself off.
Well if you look at this state like North Dakota that has a tremendous amount -- commerce taking place over a wide geographic area.
You realize that oil and gas development agriculture.
Everything depends on the transportation of goods efficiently and at low cost.
To another location.
If we provide roads that make it possible for people to move goods quickly in and cheaply.
That is -- gonna come back to us and tax revenue many times over.
How do you and had a North Dakota -- feel.
About possibly needing to bail out other states we know states.
May go to the federal government if the pool -- -- need is dispersed across all fifty states that means your budget surplus could go in large part -- -- and out of California bailing out an Illinois.
Well it really is a big concern because you know we've worked so hard appear -- have paid such close attention to our financial condition.
That is it just makes you sick when you think that the state like California.
Might have to get federal assistance and all of us as taxpayers North Dakota are gonna have to donate to that.
It's really what can I say is irresponsible and it's it's very distressing.
And you didn't have the big housing -- up I mean you feel like other states were simply irresponsible their money.
Well you know it's kind of a reverse this story for us because you know while the -- we're really booming in the nineties.
-- we didn't see that so much so we decided to build a broader based academy.
Focus on job creation.
Make sure the jobs are coming from a number of different industries.
While we were doing that everybody on the coast was celebrating.
And now of course we -- that he really gave those economies were so far ahead of themselves that they couldn't even like make their way back.
Governor Jack Dalrymple of North Dakota has been in office for about one month now and he got a pretty good problem doing hair.
Thank you very much for joining -- yeah they shellac -- attacked --
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