North Dakota’s Office of Management and Budget is beginning a series of meetings with selected state agencies to help plan for the 2027-2029 biennium.
State OMB director Joe Morrissette said the meetings will focus on each agency’s current budget, what the challenges are, and what the priorities are for the next budget. Morrissette said in the Burgum administration, OMB would meet with the agencies to talk about their strategies and big ideas.
"But this time, it felt like we know we're coming in to a budget cycle with fewer resources in the next biennium," Morrisette said. "So, we though the focus should be, 'Let's have a discussion about your budget, and where your challenges are, and if you had to come up with some reductions, what ideas are you giving thought to, as you position yourself for that next biennium, and maybe a reduced level of funding."
Morrissette said right now, state revenues are tracking very close to the budget forecast. But he said if that plays out, there will be less in the bank for the state’s general fund to start the next biennium.
"We started each of the bienniums with well over $1 billlion," Morrissette said. "WE started the current biennium with $1.3 billion in surplus, or the ending fund balance. And that was mostly spent on on-going general fund cost. Now, if we just meet our forecast, we'll start the next biennium with between $800 million and $1 billion less."
Morrisette said general revenue growth will restore some of that.
"But we won't have that kind of ending fund balance to start with," Morrissette said. "It'll present some challenges."
Morrissette said this will likely affect the state’s Strategic Investment and Improvements Fund – money used to one-time projects. He said that fund had $1.7 billion at the start of the current biennium. And the projection for the next biennium shows the fund will receive around $300 million to $400 million.
Morrissette said the process for a new revenue forecast will begin in February.
