Gov. Doug Burgum is proposing to slice another $159 million out of former Governor Dalrymple’s executive budget request.
Burgum met with Legislative leaders Monday (1-16-17). In a statement, Burgum said the continued weakness in tax collections caused him to make further proposed reductions.
"It might not be enough," said Senate Appropriations Committee chairman Ray Holmberg (R-Grand Forks), who was at that meeting. "He's using the Dalrymple revenue forecast. We have already reduced that."
The new executive budget changes would include another $31 million out of higher education; an additional $19 million from other state agencies; the elimination of 633 full-time positions; the elimination of one percent increases in K-12 per pupil funding, Medicaid and state employee salaries, all coming in the second year of the biennium; and requiring state workers to pay 5 percent of their health insurance premiums. That insurance requirement breaks with past practice. When employees weren't given raises, lawmakers made sure their health insurance was fully paid.
In a statement, Burgum said that 5 percent would be “engaging state employees in the rising costs of health care.”
"It is (a break from past practice), particularly in a year where they would receive no raises," Holmberg said. "There is a built in increase for retirement, so they are getting a double-whammy. But we are dealing in a world of reality. If money isn't there, it can't be spent."
Burgum will use $200 million from the Foundation Aid Stabilization Fund for K-12 education. He proposes $140 million in transfers to the General Fund from the Bank of North Dakota, which is $60 million less that Dalrymple’s budget. And the one building project – the Communications and Fine Arts Building at Valley City State University – would be canceled. The budget proposes a $100 million ending fund balance.
