The North Dakota State Legislature convened on January 20, 2025, to introduce House Bill 1502, a legislative proposal aimed at regulating the growth of the state’s general fund budget. Sponsored by Representatives Wolff, Hendrix, Holle, S. Olson, and VanWinkle, along with Senators Castaneda and Paulson, the bill seeks to impose a cap on budget increases for the upcoming biennium.

The primary provision of House Bill 1502 establishes that the total general fund budget approved by the legislature for a biennium cannot exceed three percent of the budget from the previous biennium. This limitation is designed to promote fiscal responsibility and ensure that budgetary growth remains manageable. However, the bill includes a mechanism allowing for flexibility; if the legislature approves a budget increase of less than three percent, the unutilized percentage can be carried forward for up to three bienniums, enabling future budgets to exceed the three percent cap if necessary. Notably, any budget increase surpassing this threshold can still be enacted if it receives a two-thirds majority vote from both houses of the legislature.

The introduction of House Bill 1502 has sparked discussions among lawmakers regarding its potential implications for state funding and services. Proponents argue that the bill will help maintain fiscal discipline and prevent excessive spending, while opponents express concerns that such limitations could hinder the state’s ability to respond to unforeseen economic challenges or funding needs in critical areas such as education and infrastructure.

As the bill progresses through the legislative process, it is expected to face scrutiny and debate, particularly regarding its impact on future budgetary flexibility and the state’s overall financial health. Experts suggest that if passed, House Bill 1502 could set a precedent for budgetary governance in North Dakota, influencing how future legislatures approach fiscal planning and appropriations.

The legislative assembly will continue to review and discuss House Bill 1502 in the coming weeks, with potential amendments and further debates anticipated as stakeholders weigh the balance between fiscal restraint and the need for responsive governance.