Prairie Public NewsRoom
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Agencies will use 2015 appropriations as a starting point for their 2017-2019 budgets

North Dakota State budget director Pam Sharp says when agencies are given their budget guidelines, it will be based on the amount the 2015 Legislature appropriated – and not the reduced budget levels following a January revenue forecast.

As a result of the revenue forecast, state general fund agency budgets were reduced 4.05 percent. That was the allotment amount ordered by Gov. Jack Dalrymple.

"When agencies made these allotment adjustments, that's meant to balance out the current biennium," Sharp told the Legislature's Budget Section. "We'll start at the beginning, meaning the original appropriation will be the starting point."

Sharp says by using the $244 million allotment, plus tapping into the budget stabilization fund for $497 million, and adding the projected $331 million ending find balance, the $1 billion dollar shortfall was made up – leaving a projected ending fund balance of zero. Tax collections for the month of January were about $1.4 million below the new forecast. And Sharp says another revenue forecast will be done this summer, to see where the current budget is.

"If we are still showing that our budget isn't balanced, then we either have to take more money from the budget stabilization fund, or we have to do further allotments," said Sharp.

Senate Appropriations Committee chairman Ray Holmberg (R-Grand Forks) said state law requires a Governor to order at least a 2 1/2 percent allotment before that fund can be accessed.

"Because that has occurred, if there were other bad news in the future, you don't have to do the 2 1/2 again, do you, before you can access the $75 million left over (in the budget stabilization fund," asked Holmberg.

"That's exactly how I see it," Sharp replied. "We've already met that threshold."

Some lawmakers questioned why Dalrymple didn't order deeper allotments.

"We looked at some of the agencies that were really sensitive to budget cuts," said Sharp. "Particularly, the Department of Human Services. And we honestly felt they could not withstand any reductions beyond that 4.05 percent."

Sharp says OMB also looked at the Department of Correctioms, which is also sensitive to cuts, because it has to feed and house inmates.

"Those cuts go to people," Sharp said.

State agencies will get their budget guidelines in April.

Related Content