Man Sues North Dakota Town Over Economic Development Spending

And good on him for doing it. This is a case conservatives in North Dakota need to get behind.

A Minot man is challenging the constitutionality of Minot’s MAGIC Fund and the state’s economic development programs. Robert Hale, who is known for taking on the government in court, filed suit in South Central Judicial District in Bismarck against the State of North Dakota and City of Minot, including the Department of Commerce and Minot Area Development Corp. He is alleging that the city and state are violating North Dakota’s Constitution by using taxpayer money to give loans and grants to private businesses and by accepting stock in companies.

Not only are so-called “economic development” programs and spending bad policy in that they don’t really work (most projects either fail after the subsidies dry up or fall victim to fraud and graft), but they’re based on bad economics. Does it really make sense to keep taxes high for all individuals/businesses in order to fund special treatment and subsidies for businesses selected by unelected public/private partnership boards? Of course it doesn’t. The politicians love it because it gives them more power and money to play with. Some business leaders like it because they get the money, or get to direct the money.
But ultimately the taxpayers are getting screwed.
Yet even beyond the fact that it’s bad policy predicated upon bad economics, it’s actually illegal per the constitution of the State of North Dakota. Specifically Article X, Section 18:

The state, any county or city may make internal improvements and may engage in any industry, enterprise or business, not prohibited by article XX of the constitution, but neither the state nor any political subdivision thereof shall otherwise loan or give its credit or make donations to or in aid of any individual, association or corporation except for reasonable support of the poor, nor subscribe to or become the owner of capital stock in any association or corporation.

If the economic development busy-bodies in the state of North Dakota want to use our tax dollars to fund their special projects then they should amend the state constitution to make that legal. But they shouldn’t get to ignore the constitution any longer.

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  • http://Array Buzz

    Welfare queens. White welfare queens, how do they sleep at night?

  • DINO

    Here’s something you ND conservatives should get behind to treat the taxpayer more fairly. Return 68%
    of the money you get from the federal government over and above the money you pay in taxes every year.

    ND gets $1.68 back for every dollar paid in federal tax.

    Now THAT’S bullshit. Let’s see how stingy you conservatives are when forced to pay your own way and stop being charity cases for the rich liberal states.

    I would also accept a deal where you lose your electoral votes until you pay your way, deadbeats.

  • djer

    Randy-g, And the conservative republicans love spending all that money in North Dakota. The state legislature could easily reject the money. Bush’s appointments to North Dakota federal farm programs could have sent the money back.

    It’s the republicans in ND that passed all the free land and money give aways for economic development.

    Try learning a bit about the ND republican legislature before you write such drivvel.

  • http://ndgoon.blogspot.com/ goon

    Here’s something you ND conservatives should get behind to treat the taxpayer more fairly. Return 68%
    of the money you get from the federal government over and above the money you pay in taxes every year.

    You need to shut your pie hole you disgusting vile troll.

  • jimmypop

    Here’s something you ND conservatives should get behind to treat the taxpayer more fairly. Return 68%
    of the money you get from the federal government over and above the money you pay in taxes every year.

    ND gets $1.68 back for every dollar paid in federal tax.

    Now THAT’S bullshit. Let’s see how stingy you conservatives are when forced to pay your own way and stop being charity cases for the rich liberal states.

    I would also accept a deal where you lose your electoral votes until you pay your way, deadbeats.

    would support that 100% when all the programs and laws the feds mandate go away and we get to do whatever we want.

  • DINO

    Typically, the deadbeats ignore their own hypocrisy.

  • Flickertail

    I’m kind of on the fence on this, sure we get more than we put into the fed back. But most of that goes to farm subsidies, if it didn’t we would have Mega farms in ND probably owned by large companies like Cargill. After that we would hear the cries of the family farmer not being able to make it. Don’t know what to think of it, as a small business owner I sometimes think if the farmer can’t make it, let him go under just like I would.

  • http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

    These clowns love to brag about “bringing home the bacon.” They have also lived off of taxpayers almost their entire lives and always will!

  • djer

    As have many republicans in North Dakota,Kevin.

    Oh, and Randy-g is that the best you got to call me a “staffer”? Perhaps you can provide some proof. If not, you ain’t got game and you ain’t brought any game.

    really, you ought to do some basic research on the ND legislature to see what your boys have spent of federal dollars. They just love them some democrats like Conrad, Pomeroy and Dorgan.

    Republicans vote for them more than they ever vote for a Republican candidate. You can’t even get anyone decent to run against them. You whine and bitch, but yet your boys love to spend those federal dollars.

    So I’ll wait for your proof that I am a staffer before I call you a liar. I do my homework unlike you!

  • jimmypop

    Typically, the deadbeats ignore their own hypocrisy.

    and you ignore facts that cause you trouble….. im happy, happy, happy to walk away if you let us do what we want. deal?

  • http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

    As have many republicans in North Dakota,Kevin.

    They only masquerade as Republicans like Hoeven, Fisher and Hawken do, who feed my tax money to their slackers on the public payroll!

  • djer

    I see Randy-g can’t bring his game, cuz he’s got no game. He runs away like the whiny baby he is.

  • jimmypop

    These clowns love to brag about “bringing home the bacon.” They have also lived off of taxpayers almost their entire lives and always will!

    what repubs in nd dont see and call sell to voters is that ANYONE in that spot would be doing the same thing. the founders knew how powerful senators would be and would keep the small states safe.

  • michael

    I hate feeding the Trolls (Dino), but I just wanted to make the point that being a liberal usually means that you don’t have a firm grasp on math or logic. Dino point out that ND receives more federal funds than it submits in taxes. That is true. That is what happens when the federal government runs a deficit. This year, the government will borrow 43.3% of the money they spend (i.e. spend $1.433 for every $1 in revenue they take in). Yes Dino, this year ND will receive more in federal spending then it submits in taxes – as will EVERY other state.

  • sayanything-6955

    If the economic development busy-bodies in the state of North Dakota want to use our tax dollars to fund their special projects then they should amend the state constitution to make that legal. But they shouldn’t get to ignore the constitution any longer.

    Ignoring the constitution is happening all too frequently, Both at the state level and now at the federal level.

    Policy is one issue, But the constitution is what it is!

    We will destroy ourselves from within if this keeps up.

  • sayanything-6955

    ND gets $1.68 back for every dollar paid in federal tax.

    That’s what liberal senator’s do, They spread the wealth around.

    If you are a farmer or a minority they will go to hell and back for you.

    Not quite so far for the business world.

  • sayanything-6955

    Try learning a bit about the ND republican legislature before you write such drivvel.

    coming from a “staffer” that is cold shit on a paper plate to me.

  • sayanything-2483

    Typically, the deadbeats ignore their own hypocrisy.
    DINO on August 29, 2009 at 08:46 am

    We see that you’re now into self analysis.

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