North Dakota’s budget director said while the state is seeing growth in revenue collections, we’re still a bit behind when you compare it to pre-Covid numbers.
Joe Morrissette said sales tax is one example. He said the forecast for fiscal year 2022 was virtually flat, compared with fiscal 2021. But he said collections are now ahead of the forecast, by about 13 percent. And Morrissette said that is showing economic growth, but it’s not yet back to where it was pre-Covid.
"We're still a little bit behind," Morrissette said. "We're about 5 percent behind FY 2020."
Morrissette said oil tax collections are also doing well. He said the forecast projected $50 per barrel oil, at a 1.1 million to 1.2 million barrel per day production rate.
"The price is roughly double what it was in the forecast," Morrissette said. "Fifty dollars additional in price has a significant positive impact on the state budget."
Morrissette said every dollar over the forecast means $40 million in revenue for the biennium.
Morrissette says these will all be factors as the next biennial budget is prepared.
Gov. Doug Burgum is expected to announce his budget guidelines for state agencies in early May.
