Centers of Excellence, Tax Credits Key to ND Future, Gov Holds

North Dakota Governor John Hoeven dedicated the lion's share of his State of the State Address to promoting a vision of economic growth for the state based entirely on technology-based economic development. The proposals centered on more than a dozen new university-based Centers of Excellence and new tax credits.

"I challenge all of us today to share a vision; a vision of what North Dakota can be. And I challenge all of us to work together to make that vision a reality. The future I speak of has Centers of Excellence multiplying across all of our state's college campuses, creating new enterprises, opportunity, and good paying jobs. It is a vision where a technology corridor drives growth in the east, where an energy corridor drives growth in the west and where value-added agriculture, advanced manufacturing and tourism enterprises flourish throughout our state."

To back that up, Gov. Hoeven's budget request includes $50 million to support the creation of new Centers of Excellence on each of the state college campuses to accelerate the growth of targeted industries in all regions of North Dakota. The centers would use the funds to leverage federal dollars, private sector support and philanthropy to generate another $100 million.

In his speech, Gov. Hoeven provided examples of potential projects for the 11 campuses, including expansion of technology parks and existing centers and the creation of new centers in numerous areas: biometrics and the life sciences; rural technology, distance learning and computer networking; oil and gas training and technology; renewable energy; bio-security; advanced manufacturing; audiology; rural law enforcement; and tourism.

The $50 million Centers of Excellence Fund would be derived from current revenues and new financing. The governor explained, "Any future debt service would likely be about $5 million per biennium, an amount easily affordable within our current level of expenditures for economic development. Further, the revenues generated from these job-creating enterprises will repay our investment many times over, and in many ways."

Gov. Hoeven also encouraged the state legislature to explore the creation and enhancement of tax credits to encourage the attraction and expansion of technology firms in North Dakota:

"My goal is to create the very best business climate possible for technology firms so that we can develop and attract to North Dakota the good paying jobs they provide. To do so, we must evaluate how we tax new high tech companies and provide tax credits for investment in technology. These tax credits combined with our highly educated workforce and healthy business climate will make our state a major new player in the high-tech world."

Gov. Hoeven's State of the State Address is available at: http://governor.state.nd.us/media/speeches/040114.html