Legislators are preparing for next week’s projected three day special session.
The session is to deal with a projected $310 million dollar state budget shortfall, due to low oil and agriculture prices. But legislative leaders say it is not a time to panic.
"The economy is okay," said Sen. Ray Holmberg (R-Grand Forks), chairman of the Senate Appropriations Committee. "It does have some issues that need to be resolved."
Holmberg said the Legislature has been putting aside money in various special funds – that were designed to be used when the economy softens. Those are usually referred to as “rainy day funds.”
"I guess right now it's raining," Holmberg said. "And the question comes, as the songwriter said, 'Who'll stop the rain?'"
Holmberg said the only ones who can access most of the reserves is the Legislature.
Holmberg said the plan is to have all the budget adjustments – and tapping of the rainy day funds – in one bill. This comes on top of the four percent allotment Gov. Jack Dalrymple ordered earlier this year.
"His (the Governor's) flexibility really stops at across-the-board cuts," Holmberg said. "At some point, priorities dictate that the Legislature has to come in and make some corrective actions."
One source for money could be the Bank of North Dakota – where the state could use some of the bank’s profits. The figure being talked about is $100 million.
"The Bank was set up as an assistance for farmers and businesses, and also for the taxpayers of North Dakota," Holmberg said. "They have over the years provided a lot of funding."
Holmberg said during the 1990s, the Bank provided $60 million per biennium from the undivided profits.
Bank president Eric Hardmeyer says the Bank is well-capitalized, so a $100 million transfer would not be a problem.
The Governor is also expected to order another allotment – of up to 2 ½ percent. He has to do that before he can tap into the foundation aid stabilization fund, which allows schools to get the state aid they were promised.
