BISMARCK, N.D. — A North Dakota legislative planning committee on Monday advanced tentative pay increases of 3% for lawmakers in each year of the upcoming two-year budget cycle. The Legislative Procedure and Arrangements Committee unanimously approved these numbers as a starting point for budgeting, not as a final decision, which will be made by the 2027 Legislature.
The proposal, dubbed “3 and 3,” was put forward by Senate Minority Leader Kathy Hogan, a D-Fargo lawmaker who cited the rate of inflation as a factor, according to the committee. Senator Hogan will retire before the next legislative session begins in January. Committee chair Sen. Jerry Klein, R-Fessenden, noted that the final number would be adjusted by the Legislature. A legislative memo indicates the projected cost of these 3% increases would be $414,718 for the next budget cycle, covering monthly pay, daily session pay, interim meeting pay, and additional monthly compensation for leaders.
North Dakota’s state government operates on a two-year budget cycle, commencing July 1 of every odd-numbered year. It is traditional for pay raises for state employees and lawmakers to be set at the same rate. The 2025 Legislature previously adopted pay raises of 3% for each year of the current 2025-27 budget cycle.
Rates for state employee and lawmaker pay increases are typically adopted jointly by the House and Senate appropriations committees after reviewing financial projections. Key factors for budget writers in this decision are state revenues and inflation, according to Senate Majority Leader David Hogue, R-Minot. Hogue explained the committee's immediate decision, stating, “You’ve got to put a number in a blank, so we put in 3.”
Reports from legislative and executive branches released last month show that general fund revenues, which are tax collections funding the state government's main operating account, are currently about 1% below the forecast set by the Legislature. This translates to approximately $37 million less than lawmakers had projected, out of more than $3 billion collected so far in the 2025-27 budget cycle. Sales taxes represent the largest contributor to the general fund, which also includes oil tax revenue and individual and corporate income taxes. Last year, the Republican-led Legislature approved a $6.26 billion two-year general fund.
Governor Kelly Armstrong is scheduled to present his state government budget blueprint to the Legislature in December, which will include his administration’s recommendation for pay increases, according to governor’s spokesman Mike Nowatzki. Earlier this year, Governor Armstrong requested state agencies to reduce their budget requests by as much as 10% and implemented a hiring freeze. A round of buyouts initiated earlier this year resulted in 101 state employees across 14 agencies leaving state service.
Regarding current compensation, the 2025 Legislature set various rates. Legislative leaders and the chair of Legislative Management, a powerful committee guiding legislative work between biennial sessions, earn an additional $450 per month. Leaders and committee chairs also receive $10 to $20 per day. Senate Majority Leader David Hogue stated that the current compensation package for lawmakers is fair, adding that “it's public service.” Historically, from 1889 to 1983, North Dakota lawmakers were paid $5 per calendar day during sessions, along with varying expense reimbursements over the years, according to a legislative memo.
