The North Dakota Legislature may have less money to work with in the upcoming biennium.
"They're projecting right now that revenue will be below projections by $900 million," said Senate Appropriations Chairman Brad Bekkedahl (R-Williston).
That was echoed by House Majority Leader Mike Lefor (R-Dickinson).
"Allen Knutson from Legislative Council has told us we will have $1 billion less next time," Lefor said.
Bekkedahl said for the current biennium, things are okay.
"Right now, we're a little bit ahead, but we are now dipping a little behind, so on average we're close to the budget," Bekkedahl said. "But we're only six months into the 24 month biennium."
Bekkedahl said if the trend continues, the state could very well see a shortfall before the end of the biennium. He said oil prices are the biggest factor.
"That's not only in terms of the oil taxes we get to fund government operations," Bekkedahl said. "But also the spin-off in oil development with sales tax."
Bekkedahl said Tax Commissioner Brian Kroshus estimates about 20 percent of sales tax revenue is directly related to oil activity inputs.
Lefor said oil prices are something the state can't control.
"When you talk about OPEC and other countries, they certainly have a lot of sway over the price of oil," Lefor said. "Then there's what's happening in Venezuela."
Lefor said it will be interesting to see what happens going forward.
"At the end of the day, President Trump's goal is to have a lower price for a barrel of oil, so that gas prices to consumers are better," Lefor said. "I certainly understand that thought process. But it does come at a cost to our state, in terms of budget revenue."
Bekkedahl said he expects more information when the Legislature’s Budget Section meets in March.
