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.
Tags: Asshats, Domestic Issues, North Dakota News, Politics


