A study from the Mercatus Center at George Mason University ranks North Dakota 4th in the nation in terms of fiscal health.
But there’s a catch – researchers say that’s based on 2014 data.
"That picture changed a couple of months after the reports were published," said Eileen Norcross, a senior research fellow with the Mercatus Center. "Since then, there is some budgetary stress in North Dakota."
Norcross says the decline in the oil industry is causing those budgetary concerns. However, she says North Dakota is still in a good position.
"This is a state with relatively low levels of debt," Norcross said. "It has manageable pension obligations. North Dakota is not in the same position as other states that have poor cash and poor budgetary solvency, and lots of debt. I think North Dakota can manage its way out of the current budgetary shortfall."
But Norcross says North Dakota’s state spending is high, relative to the income of state residents.
"That's a cautionary sign," Norcross said. "States should not be spending a lot compared with the income of its population, because when you do have a decline in your revenue, that leads to a budget gap."
Norcross also said North Dakota’s Legacy Fund shows the state is forward-thinking, to save money for the future.
