Gov. Jack Dalrymple has ordered state general fund agencies to trim their budgets by another 2 ½ percent.
It comes on the eve of a special Legislative session. Dalrymple said he’s doing that to help close a $310 million budget shortfall. And that’s on top of an earlier 4.05 percent cut.
"We're going to be focused on reality this week," Dalrymple said. "I'm asking people to reduce budgets some more. We want to be sure legislators understand that we think this is necessary."
Dalrymple said he will ask for the transfer of the remaining $75 million in the Budget Stabilization Fund. And he will ask lawmakers for the authority to take up to $100 million from the Bank of North Dakota’s profits. Dalrymple said he will use that money to make sure the Department of Human Services will not be cut by the additional 2 ½ percent. And he said the Department of Corrections will see a one percent reduction.
Legislative Democrats have been calling for a restoration of some of the earlier cuts. But Dalrymple said that’s not feasible. He says much of what was cut earlier came in new initiatives.
"This is not a good time to add employees, or to expand things we are doing," Dalrymple said.
The legislation to make it possible will have legislative intent language – so that if fiscal conditions improve, the 2017 Legislature could restore funds to behavioral health services, autism and long term care.
Ordering the 2 1/2 percent allotment also allows Dalrymple to access the Foundation Aid Stabilization Fund, so K-12 education will not see any reductions.
The single budget bill the special session will consider will have four names on it as sponsors.
They include Senate Majority Leader Rich Wardner (R-Dickinson), House Majority Leader Al Carlson (R-Fargo), House Appropriations chair Jeff Delzer (R-Underwood), and Senate Appropriations chair Ray Holmberg (R-Grand Forks).
Holmberg said this is a good bridge to the 2017 Legislature. He said if further adjustments need to be made – either up or down – that session is only 5 months away. Holmberg said the bill is easy to understand and explain.
"Discussions of various amendments should be short and sweet," Holmberg said. "The Legislature has debated all of those issues. We voted on them, and we supported them. It is not that we, all of a sudden, havesaid, 'We don't like this, this and this.' It is, 'We don't have the money for this, this and this.' And there's a big difference."
Lawmakers are hoping to wrap up the special session Thursday.
