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Last state allotment: July 2002

The last time North Dakota state agencies faced a budget allotment was in the year 2002.

It happened in July. Sen. John Hoeven (R-ND) was the governor at the time.

"The revenue projection was short of the forecast during the Legislative session," Hoeven said. "We ended up doing a one percent allotment to make sure we balanced our budget, and finished with a positive ending fund balance."

Hoeven says at the time, there was no “budget stabilization fund.” But he says after that allotment, there were Legislative efforts to create such a rainy day fund.

"That's very important in a state where the budget is commodity-driven," Hoeven said. "You';re going to have cycles. So you have to be careful."

Voters later created the “Legacy Fund” – to save some oil tax revenue. Hoeven says it’s important to preserve that for future needs – and he hopes lawmakers will leave the fund’s principle alone. Beginning in 2017, the Legislature can use some of the proceeds from that fund.

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