"Really, the economic development work is what drew me to public service in the first place," Hoeven said. "When I was elected, the first thing we did in 2001 is we got everybody together -- and I mean the private sector, economic developers from around the state, higher education -- we got everybody involved and we built a statewide strategic plan for economic development."
The Commerce Department was reorganized as a "one-stop shop" to assist residents, existing businesses and new businesses. At the same time, five targeted state industries were selected for growth development -- value-added agriculture, advanced manufacturing, technology based business, energy and tourism, he said.
"We selected those five because we thought we had natural advantages here in North Dakota so we could compete in a global economy in those industry sectors. And also because those are the industry sectors where you can develop jobs not only in our large communities, but also in the small towns and rural areas," Hoeven said.
Those industry choices could almost be described as prophetic. In 2001 when energy was selected as a target, Hoeven said no one was talking about an energy crisis. "At that time, companies weren't coming into the Williston basin, they were leaving the Williston basin or they were already gone," he said. "We put incentives in place for drilling, for equipment, for pipeline. We passed an oil and gas research fund to help with new drilling techniques -- directional drilling, horizontal drillling for things like the Bakken."
A pipeline authority also was created, and through his Centers of Excellence Program, training and recruitment could take place at Williston State College.
"We did all of those things to market the basin and get companies into the basin and get things going before there was an energy crisis," Hoeven said.
Natural gas, however, could be described as the forgotten child of the state's energy industry.
"With the natural gas development we have going right now, within a couple of years, we will produce and get to market enough natural gas to power 1.9 million homes," Hoeven said. "And you don't even hear much about natural gas."
Plants in the state also are producing a half billion gallons of ethanol a year, while biodiesel production has reached 100 million gallons a year, he said.
"Right now, we have $5 billion in wind development going on. We have five different transmission line projects that we're building now. And that is just in the energy area," Hoeven said.
When looking at advanced manufacturing, North Dakota is one of three states that is actually gaining manufacturing jobs, he said.
"Since 2000, we have picked up 10 percent in our manufacturing base at a time when the country lost 20 percent of its manufacturing base," Hoeven said.
Not only does the state have to continue to expand its economy, but it also must seek continued diversification, he said.
"That's the engine that keeps things going and enables us to invest in our priorities," he said. "We have to keep that focus going forward. And that is why I'm running, is to build on that progress that we've made."
Clean coal technology is one area the state needs to expand its focus upon, he said. He points to the proposed coal-fired electric generating power plant near South Heart as an example of an important project in western North Dakota.
"That combination of technology, good environmental stewardship, producing more energy, those are the kind of exciting things we're doing in North Dakota that can have a huge impact here and can make a difference for the country," he said.
Overall, the state needs to continue to create more good-paying jobs to expand and diversify the economy and create more careers.
"That then not only creates more opportunity for our people, which keeps people here and brings others back, but that also generates the revenues to invest in our priorities like education, quality health care, law enforcement, roads, bridges, infrastructure," Hoeven said. "It also generates the revenues to provide tax relief."
He has put forward a plan for the next four years to provide property tax and income tax relief, while also building a solid financial reserve for the future.
Hoeven's property tax relief and education funding reform plan involves $500 million, with $300 million in direct property tax relief, $100 million in income tax relief and at least $100 million more to provide a quality education for students while improving teacher pay.
"I think the important point here is our plan not only provides real tax relief, it reforms out systgem of funding education so we can bring property taxes down, but keep them down going forward," he said.
His education proposal also involves the "ACT-ND" program that provides $40 million per biennium as a college tuition assistance program. Together with Pell grants, it could provide about $4,800 per year per student for those needing assitance, he said.
"It's particularly important now because you know we're createing jobs. We have 15,000 open jobs around the state right now and we need to fill them," Hoeven said. "Part of that is workforce recruitment, education and training. That ACT-ND program goes right to helping us attract and retain workers to fill these jobs."
Another proposal Hoeven recently unveiled that also relates to workforce development is more assistance with child care, as well as pre-K education.
"Pre-K education not only goes to quality education, making sure we provide the best education because we have to compete in a global economy," he said. "But both pre-K and our state grant for child care helps families by helping make child care available, early childhood available. That ties in well with our economic development workforce efforts, but in a way that really helps families."
On the other end of the age spectrum, Hoeven also proposes doing more for senior citizens.
"What I hear around the state is people first and foremost want tax relief in the form of property tax relief," he said. "But that's also important for our seniors, people who are on fixed incomes, enabling them to stay in their homes longer."
He's proposed a $17 milion package to do more with home and community based care to help senior citizens stay in their homes while having more choices for living options.
"These programs all tie together. It starts with making sure we have jobs and opportunity, quality education, workforce development and training and then the quality of life issues, helping families both with children as well as helping families with seniors," he said.
The senior issue is becoming larger as the baby boomer population ages.
"That's why we need to continue strong support for long term care, which we are, but also continue to do more with home and community based care so we have that whole continuum of care. We really give our seniors more choice, more options," he said.
Hoeven added people are not only living longer, but they're remaining active longer.
"They are an important part of our workforce. We have more seniors in the workforce because they choose to be out there doing things," he said. "It's a quality of life issue and it is about choice."
When it comes to funding priorities, Hoeven added more needs to be done regarding the state's infracture.
"This is an important issue out there in the western part of the state, oil- and gas-producing counties," he said. "We need to again, like we did last (legislative) session, go in and make adjustments to the revenue sharing that comes back for the Oil Impact Fund, as well as what comes back from the production tax to oil- and gas-producing counties. Clearly, that is somethnig you see very directly in places like Williston, Stanley, as well as throughout the counties in the West."
In addition, more needs to be done for infrastructure across the entire state, he said.
"We have a growing economy. Since 2000, it's grown by more than 50 percent. That means we have to do more with infrastructure," he said.
That means providing more funding for transportation-related issues than just producing funds for federal matching projects, which was done during the last Legislature, he said.
"We led the nation last year in export growth. We're seeing increased traffic volumes," Hoeven said.
The state needs to make sure investments continue in infrastructure, not only to keep everyone safe, "but also as part of a growing economy," he said.
Hoeven's Commission on Education Improvement needs to address the adequacy of state education funding now that it addressed equity issues during the last legislative session, he said.
Meanwhile, law enforcement also has needs to be addressed.
"We take a tough stand on doing all we can to keep North Dakota safe," Hoeven said. "I do believe we'll get our prison done this time, something along the lines that we proposed the last time."
He also believes approaching the state budget means "balancing investing in our priorities, making sure we continue to build our reserve for the future so we're in a sound financial position and then providing tax relief to the citizens."
It's easy to see how important aggressive economic development and sound fiscal management is when looking at what's going on nationally and internationally right now, he said.
"So we have to keep our eye on that ball. We got to stay focused on it," Hoeven said.
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