The director of North Dakota’s Office of Management and Budget says a special session is possible – if this summer’s revenue forecast shows weaker-than-expected tax collections.
Pam Sharp told the Legislature’s Government Finance Committee – revenue collections continue to lag behind the special January revenue forecast. She says even after the 2 percent across-the-board budget allotment, a transfer of nearly $498 million from the state’s budget stabilization fund, and an estimated $26 million turn-back from state agencies, the state would end the current biennium $69 million in the red.
Sharp says there’s still $75 million in the stabilization fund, so that could be used to balance the budget. But she says a new revenue forecast – now due out in mid-July – will be important. And she told the committee there are three options.
"It will tell us that we're going to be okay through the rest of this biennium," Sharp said. "It could tell us that we need to transfer the extra $75 million, along with a small allotment. And the other possibility is -- if the shortfall is larger than that, then the option would be to consider a special session."
"This administration and the Legislature is a great believer in Edmund Burke's comment about 'Respect Reality,'" said Sen. Raymon Holmberg (R-Grand Forks), the chairman of the Senate Appropriations Committee. "We have the options laid out by the Governor, and that's what's built into the law. It will depend on how the economy continues to evolve."
Holmberg credited the Dalrymple administration for being open and frank about the options.
"They're not doing any political running about and saying, 'We have to have a special session,'" Holmberg said. "They're doing the prudent thing."
Sharp says she’s been talking with Moody’s Analytics about why sales tax collections continue to be soft – and how much effect the agriculture economy has on those revenues. She has asked the forecast advisory group to convene shortly after July 4th.
The forecast was originally scheduled for a mid-August release.