That’s the question asked in a recent article in the Bismarck Tribune.  While I agree with the premise of the article (I do believe the state’s economy - especially now with it being driven by the oil industry - is robust and flourishing), the specter of recession should be enough to get fiscally responsible citizens thinking about all the government spending our state does.

Let’s not forget that most government spending - as much as politicians may make claims to the contrary - is on-going spending.  If we build new roads, we’re committed to maintaining those roads.  If we build new schools, we’re committed to maintaining those schools.  If we put more money into a government agency that usually means more bureaucrats are hired and more offices are opened, both of which represent on-going costs.

Our state government has been able to expand spending significantly over the last couple of years (the last legislative session saw a 24% increase in general fund spending) mostly on the back of significant increases in state income and sales tax receipts.  But what happens if our state does hit a recession and those growing tax receipts start to shrink?

Suddenly our state is stuck with big spending commitments and no way to fund them except to raise taxes.  Which, in turn, puts more burden on the economy and enters us into a vicious cycle of economic stagnation.

This is exactly why our political leaders in North Dakota should be avoiding the temptation to pass massive new spending policies and instead focusing on how to keep as much money as possible in the hands of taxpayers, and thus the economy.  Sadly, though, I’m not sure many of our political leaders are willing to do this.  For tax-and-spend Democrats, it’s just not their nature.  And with Republicans laboring under spend-happy Governor John Hoeven they aren’t likely to get behind such a philosophy either.