Gov. Kelly Armstrong has given state agencies the guidelines to build their proposed budgets for the 2027-2029 biennium.
Armstrong said the state continues to do well financially.
"We have had a balance problem in our state budget," Armstrong told the agency representatives. "It's the growing gap between our on-going revenues, and on-going expenditures."
Armstrong called it a "slow burning storm."
In his guidelines, Armstrong said there would be no new full time positions, with a few exceptions, including the new women's prison being built in Mandan. Also, Armstrong said there will be no new buildings. And he said any agency asking for new spending will have to come up with reductions elsewhere.
"We're asking agencies with general fund budgets of less than $10 million to prepare a hold-even budget," Armstrong said. "For agencies between $10 and $20 million, they will be asked to identify base reductions of three percent. And we're asking agencies with budgets over $20 million to identify base-budget reductions of 10 percent."
Armstrong also asked agencies at the hold-even or three percent levels to identify contingency reductions of another three percent.
The proposal is to keep funding for K_12 schools even, as well as funding for higher education and for career and technical education.
Armstrong did not discuss any raises for state workers. State OMB director Joe Morrissette said that will come later in the budget process.
