(The Center Square) - North Dakota Gov. Doug Burgum's $18.4 billion budget for the 2023-2025 biennium includes cuts to state income taxes he said would eliminate the tax for three out of five taxpayers.

The budget Burgum proposed Wednesday is 3.4% higher than the $17.8 billion spending plan that included money appropriated during the 2021 special session, according to numbers from the governor's office. The general fund budget is just under $5.9 billion, which is $162 million less than the December 2016 budget, Burgum said in an address to lawmakers.

The state is doing better, in part, because of higher oil prices, according to Burgum.

"As a result, our general fund revenues are running well ahead of the legislative forecast that was issued just before you adjourned your last regular session in April 2021," he said.

But those high oil prices and inflation are putting a strain on families. Burgum said the state should share its prosperity with taxpayers.

"Those who will still pay income tax will see their liability reduced by roughly one-quarter to one-half, allowing North Dakotans to keep more of their hard-earned money to offset expenses and invest in their families and communities," Burgum said. "And it puts on a path toward eventually zeroing out our individual income tax and joining the eight states that don't have individual income tax. These include some of our nation's fastest-growing states and ones with whom we compete for workers in the energy industry and other sectors, including Alaska, Texas and Wyoming, and our neighbor South Dakota."

Burgum asked lawmakers to set aside $167 million to address the workforce shortage. The state's unemployment rate is third in the country and 35,000 jobs are currently open. The investment will be spread across child care programs, workforce development grants and scholarships.

The budget also includes $2.4 billion for roads, bridges and other infrastructure. The Infrastructure Investment and Jobs Act will provide $1.2 billion, Burgum said.

Another $600 million is allocated for water improvements.

The governor was applauded by lawmakers when he said a new women's correctional facility was long overdue.

"The state has contracted with Dakota Women's Correctional Rehab Center in New England since 2003 to house female residents," Burgum said. "While staff there have done a commendable job of providing services with the resources and facilities available, the disparity in conditions between our male residents in Bismarck and female residents in New England is simply unacceptable. To provide adequate space and conditions for female residents, and a more central location for visitation and recruiting staff, we recommend creating a new women's correctional center in Mandan at a projected investment of $161 million."

Burgum is proposing a 4% increase in the per-pupil rate for education in the first year of the biennium and a 3% increase in the second year.

"And, like last session, the budget proposes that school districts be required to spend at least 70% of new dollars for K-12 on compensation for educators," the governor said.

The state has $718 million in its Budget Stabilization Fund, a projected $1.1 billion in the Strategic Investment and Improvements Fund, and $486 million projected in Legacy Fund earnings, according to Burgum's office.

"We are fortunate to be in a position to make investments in our state's future. The bottom line is that our state is doing extremely well. And when the state is doing well, citizens should share in that prosperity," Burgum said.