North Dakota Faring Well Thanks to Brakken
HOLMES: Again, I want to take you to a live picture. We're watching this little outside of Chicago. Joliet is where it is. Empress Casino is what it's called. Fire happening there. It's been going on for just a short time now. But the word we're getting is that there are no injuries at this time to report. This started with new construction, according to the fire department there. It started with new construction. The fire department was able to get everybody out of there, according to the fire department. So it doesn't look like anybody is in danger. At least anybody but the firefighters, maybe, who are always in danger when they're battling these fires. But it looks like all the patrons were able to get out of the casino. Again, new construction. We'll keep an eye on this thing. But just want to let you know what's happening there and update you. But no injuries to report. Sounds like everybody did get out. The weather is cold, but the economy, red-hot. These are boom times in North Dakota. Jobless rate there, four percent. That's half the national average of 8.1 percent. Reporter Donnell Preskey takes a look for us. She's with our affiliate KXMB in Bismarck.</s>DONNELL PRESKEY, KXMB CORRESPONDENT: T.J., things are good here in North Dakota. The sun is out, the record snow is melting and the state has money. North Dakota is sitting on a $1 billion surplus. But it didn't happen overnight. Conservative spending and aggressiveness in target areas put North Dakota in this positive place.</s>PRESKEY (voice-over): There are no spending cuts. No tax hikes. No deficit for North Dakota. Instead, there's nearly a billion dollar surplus.</s>GOV. JOHN HOEVEN (R), NORTH DAKOTA: We worked to be very aggressive in economic development. And that means targeting industries for growth. Things like value-added agriculture, advanced manufacturing, technology-bases businesses, energy and tourism. And that aggressive approach to economic development and building diversity in our economy has really helped strengthen North Dakota even during the downturn.</s>PRESKEY: The oil industry is one big reason for the nice padding. New technology has allowed access into the Bakken formation, the largest oil reserve in the lower 48 states.</s>RON NESS, NORTH DAKOTA PETROLEUM COUNCIL: The Bakken oil boom has bought a tremendous number of high-paying jobs to North Dakota. It's created a lot of wealth for North Dakotans. And, it's brought in a lot of tax revenues to the state of North Dakota.</s>PRESKEY: Oil prices have dropped over $100 in the last eight months. That's led to layoffs and decreased production. It shows while things are good now, North Dakota is not recession-proof. Companies that depend on national sales are suffering. Several manufacturing businesses have cut back production and temporarily shut down. That's caused North Dakota's unemployment rate to increase. However, the state still has the third-lowest percentage in the nation.</s>HOEVEN: We're feeling the effects of the recession, too. Our economy is holding up better than most, and I think it's in large part because we have diversified our economy.</s>PRESKEY: Lawmakers are being cautious on how to invest the surplus to continue the state's growth and avoid joining the recession.</s>REP. AL CARLSON (R), NORTH DAKOTA STATE HOUSE: North Dakotans are conservative by nature. And we have over the last biennium tried to fund (ph) our priorities, but in the same time, keeping in mind that we should put money aside and have it for any economic times that might change. And because of that, we're in strong financial position today.</s>PRESKEY: Legislators plan to return part of the state's surplus to North Dakotans. They are working on ways to give $400 million to state residents in income tax and property tax relief. A cash-back bonus for the people of a state that's doing so well. (on camera): Many legislators say North Dakota really doesn't need the $650 million in federal stimulus money. House Majority Leader Al Carlson says they may turn down some of the dollars that aren't for one-time projects.