state budget

Gov. Doug Burgum is making a few changes to the budgeting process for state agencies.

Burgum unveiled the changes at what’s been called a “JEL” meeting – “JEL” standing for “Judicial, Executive and Legislative.” He told the agency heads and state employees attending, he wants to start a "strategic planning project."

"Strategy has to drive budget," Burgum said.

A long way from zero.

Two years ago, state Legislators had to spend down the state’s budget stabilization fund – to balance the budget, during a state revenue downturn.

Now, thanks to an improved state economy, and robust state tax collections, that fund is being replenished.

"The most current estimate, through the end of May, would be about $450 million," said state Office of Management and Budget director Joe Morrissette. "About $150 million more than what was assumed in the March, 2019 Legislative forecast."

The director of the state’s Office of Management and Budget said OMB has finished a series of “strategy review” meetings with executive branch agencies.

Joe Morrissette said it was no small feat, as agencies met with OMB as they were working on their budget proposals for inclusion in the Gov. Doug Burgum’s executive budget for the 2019 session.

Morrissette called the meetings were very positive, and agencies came with a lot of good ideas.

"It's a starting point."

That's how Sen. Ray Holmberg (R-Grand Forks), the chairman of the North Dakota Senate Appropriations Committee, characterizes the budget guidelines laid out to state agencies.

Burgum has called for more reductions – 5 percent for smaller agencies, 10 percent for the larger ones, plus a five percent reduction in state government workers. K-12 education and Medicaid are spared cuts.

Holmberg said a lot can happen between now and the 2019 Legislature.

Gov. Doug Burgum wants to see more collaboration among state agencies when it comes to building budgets.

Next month, Burgum will release his budget guidelines for state agencies for the 2019-2021 biennium. State agencies will build their budget requests based on those guidelines. But Burgum told representatives of agencies during a meeting in Bismarck Wednesday agencies sometimes have similar responsibilities, but their own budgets for certain programs and issues, such as addiction treatment. And he wants agencies to be more collaborative.

The new director of the Office of Management and Budget had what he called "good news" for the Legislature's interim Government Finance Committee.

"I'm happy to say my first official report as director of OMB contains good news," Joe Morrissette told the Committee. "We are continuing to track very closely to our Legislative revenue forecast."

Morrissette has been on the job since March First. He replaced Pam Sharp, who retired. He told the Committee revenues exceed the May, 2017 forecast by about 1.7 percent since July first, the start of the new fiscal year.

North Dakota likely has more of a budget cushion as the 2017-2019 biennium begins.

"When the Legislature left town, they anticipated that our ending balance would be about $30 million," said state Office of Management and Budget director Pam Sharp. She said June tax collections were actually $28 million ahead of the budget forecast. And that will make the cushion $58 million.

But Sharp said there's another item that is boosting the bottom line.

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 chairman of the North Dakota Senate Appropriations Committee said it appears there will have to be further cuts to former Gov. Jack Dalrymple’s executive budget proposal.

That proposal was given to lawmakers earlier this month.

"Revenue numbers are still slumping," said Sen. Ray Holmberg (R-Grand Forks). "The new, lowered revenue forecast said that by the end of the current biennium, we will have lost $54 million in sales tax income. There are seven months left in the current biennium, and we're already $55 million behind."