Gov. Jack Dalrymple has asked state agencies to submit reduced budgets for their 2017-2019 requests.
It would be 90 percent of the budgets approved by the 2015 Legislature. It would not be a ten percent cut from the current allotment levels. Dalrymple earlier ordered an across-the-board 4.05 percent cut.
"Obviously, many of the adjustments made in the allotment process may need to be continued," Dalrymple said. "But agencies are not locked into the decisions they made for the allotment."
Dalrymple says K-12 education would be exempt, as will the Department of Human Services and the Department of Corrections. He also says one-time projects – such as buildings – would only be approved if there is a demonstrated emergency.
"We have always said the day could come when large, one-time investments in capital projects would no longer be possible," Dalrymple said. "Ladies and gentlemen, that day has come."
The reason for the 90 percent budget -- tax revenues have fallen because of weakness in the energy and agriculture sectors.
"With tax revenues falling short of expectations, we must find greater savings and efficiencies, while minimizing as much as possible the impact on services," Dalrymple said.
"We understand there will be tough choices to make, in order to achieve these goals," Dalrymple said. "Budget reductions are never easy. But we have confidence that your recommendations will be thoughtful, and based on your intimate knowledge of your industry," Dalrymple said.
A new state revenue forecast is due this summer. Dalrymple will present his executive budget recommendation to the Legislature at its December pre-session -- just before Dalrymple leaves the Governor's office.
