Current projections show the state of North Dakota will have around $400 million in the bank at the end of the biennium.
State Office of Management and Budget director Joe Morrissette said while that’s a healthy ending fund balance, it won’t match what the state has seen for a number of years.
"The last three bienniums have all ended with a balance of well over a billion dollars," Morrissette said.
Morrissette said state agencies have not yet been given their formal budget guidelines. However, he said agencies have been told to prepare for reductions.
"They'll definitely not be the kind of spending for one-time items that we have enjoyed in the pasts several biennia," Morrissette said. "There's got to be some look at those ongoing budgets, and a focus on the things that we have to do, and where we can focus on core programs, and find savings."
Morrissette said 19 state agencies have decided to participate in a “voluntary separation incentive program.” He said around 4000 people work in those agencies.
"The last time a voluntary separation program was offered, there were about 200 state team members that took advantage of that," Morrissette said. "We would expect some number similar to that, a small fraction of the eligible employees, that are considering a change — retirement, or whatever that might be driving their separation from the state."
Morrissette said it is a small incentive, that equates to three months of salary and benefits.
"In some cases, that may be enough to make someone decide, now's the right time," Morrissette said.
State agencies will receive their budget guidelines in April.
