North Dakota Legislative Budget Status for the 2009 Legislative Session in Bismarck

Prepared by the North Dakota Legislative Council
staff
Beginning Balance and Revenues
Legislative budget estimate of unobligated general fund cash balance - July 1, 2009 $319,514,431 1
Add 2009-11 estimated revenues
Proposed executive budget general fund revenues $2,783,873,000
Legislative revenue changes
Major increases
HB 1279 - Reduces individual income tax rates (executive recommendation) (Defeated) 100,000,000
Major decreases
February 2009 revenue forecast revision (93,002,000)
HB 1209 - Provides individual income tax credit for long-term health care premiums (1,500,000)
HB 1255 - Reduces corporate income tax rates (20,000,000)
HB 1256 - Provides an income tax reduction for certain qualified dividends (4,600,000)
HB 1268 - Provides a sales tax exemption for clothing (34,960,000)
HB 1317 - Reduces the pull tab excise tax (3,683,070)
HB 1407 - Decreases the general fund share of motor vehicle excise taxes (64,764,000)
HB 1428 - Raises the maximum aggregate income tax credit for renaissance zone investments (5,000,000)
HB 1485 - Maintains the general fund share of oil and gas taxes at $71 million (39,000,000)
SB 2004 - Provides for emergency medical services grants (1,500,000)
SB 2014 - Removes the transfers from the Bank of North Dakota and the State Mill and Elevator (62,500,000)
SB 2040 - Provides a sales and use tax exemption for telecommunications infrastructure (4,738,000)
SB 2184 - Excludes manufacturer incentives and discounts from motor vehicle excise tax (5,888,000)
SB 2221 - Creates a credit against coal conversion privilege taxes (7,420,000)
Other increases (decreases) (1,482,026)
Total legislative changes affecting revenues ($250,037,096)
Total estimated general fund revenues and beginning balance - 2009-11 $2,853,350,335
Appropriations
Executive budget general fund appropriations - 2009-11 $3,110,921,665
Legislative appropriations changes
Major increases
SB 2018 - Department of Commerce 33,314,000
SB 2062 - Higher education student financial aid 25,000,000
SB 2030 - State Penitentiary project 22,465,804
HB 1515 - Roadway improvement projects 15,000,000
SB 2025 - Veterans' Home construction 7,944,991
HB 1400 - Education programs 6,300,000
SB 2333 - Creation of regional public health networks 5,800,000
HB 1350 - Grant for construction of applied energy research center 5,000,000
HB 1006 - State Tax Commissioner 3,521,479
SB 2201 - Property tax credit for disabled veterans 2,700,000
SB 2230 - Grants to domestic violence sexual assault organizations 2,000,000
SB 2266 - Funding for the nursing education consortium 2,000,000
HB 1221 - Grants for political subdivisions experiencing tornado damage 1,594,597
HB 1540 - Funding of economic assistance programs on Indian reservation land 1,215,650
HB 1043 - Dementia care services program 1,200,000
Major decreases
HB 1012 - Department of Human Services (29,152,111)
SB 2003 - North Dakota University System (29,016,612)
SB 2015 - Department of Corrections and Rehabilitation (23,134,316)
HB 1013 - Department of Public Instruction (13,345,312)
HB 1015 - Office of Management and Budget (8,545,191)
HB 1022 - Retirement and Investment Office (5,000,000)
HB 1003 - Attorney General (3,624,079)
HB 1016 - Adjutant General (2,280,681)
SB 2009 - State Fair (2,000,000)
Other increases (decreases) net 4,701,353
Total legislative changes affecting appropriations $23,659,572
Total 2009-11 general fund appropriations $3,134,581,237
Estimated Ending Balance
Estimated budget status general fund balance - June 30, 2011 ($281,230,902)
February 20, 2009
AS OF FEBRUARY 20, 2009
2009-11 BUDGET STATUS SUMMARY
Comparison of 2009-11 General Fund Appropriations to 2007-09 Appropriations
Current status of 2009-11 general fund appropriations $3,134,581,237
2007-09 legislative general fund appropriations 2,461,973,956 2
Increase (decrease) $672,607,281
Percentage increase (decrease) 27.32%
Footnotes
1 $502,933,109 a
February 2009 revenue forecast revision 18,920,389
SB 2025 - Supplemental funding for Veterans' Home reflected as 2009-11 appropriation 12,036,404
SB 2393 - Provides for emergency snow removal grants (1,000,000)
HB 1513 - Continuation of unspent appropriation authority at the end of a biennium (8,050,000)
HB 1023 - Decreases general fund deficiency appropriations 2,057,184
HB 1083 - Changes filing date for monthly sales tax filers for May in odd-numbered years (15,560,000)
Total legislative changes affecting the beginning balance $8,403,977
Estimated general fund cash balance prior to budget stabilization fund transfer $511,337,086
Less transfer to budget stabilization fund (HB 1419) (191,822,655) b
Estimated unobligated general fund cash balance - July 1, 2009 $319,514,431
a
b
2
Permanent Oil Tax Trust Fund - 2009-11 Biennium
Beginning balance $475,091,147
Estimated revenues
Oil and gas production tax and oil extraction tax collections - Legislative forecast $291,392,000
Adjustments
Changes allocation to oil and gas research fund (SB 2229) (Defeated) 2,000,000
Changes allocation to oil and gas impact grant fund (SB 2013) 10,000,000 1
Changes allocations to counties (HB 1304) (27,750,000) 2
Changes general fund share of oil tax revenues (HB 1485) (Defeated) 39,000,000
Total estimated revenues 314,642,000
Total available $789,733,147
Less estimated expenditures
Water project grants (HB 1305) $2,200,000
Property tax relief (SB 2199) 295,000,000
Tribal college assistance grants (HB 1394) 700,000
Economic stimulus payments (HB 1324) 100,000,000
Energy Development Impact Office grant (HB 1225) 5,000,000
Disaster relief fund (HB 1503) 44,000,000
Total estimated expenditures 446,900,000
Ending balance $342,833,147
1
2
Budget Stabilization Fund - 2009-11 Biennium
Beginning balance $391,822,655
Estimated revenues
None $0
Total estimated revenues 391,822,655
Less estimated expenditures
None $0
Total estimated expenditures 0
Ending balance $391,822,655
Legislative action affecting the July 1, 2009, balance
The beginning balance is based on the 2007-09 general fund beginning balance of $295,541,176, the 2007-09 revised
general fund revenue forecast of $2,681,898,795 and appropriation authority of $2,474,506,863 (general fund appropriations
of $2,461,973,956 plus proposed deficiency appropriations of $10,496,503 and less estimated general fund turnback of $10
million).
House Bill No. 1225 also changes the allocation to the oil and gas impact grant fund which would increase revenue by $12 million rather than the $10
million shown.
Senate Bill No. 2229 also changes the allocation to counties which would reduce revenue by $25.5 million rather than the $27.75 million shown.
Includes a $5 million contingent general fund appropriation for school district deferred maintenance and physical plant
improvement grants, which became effective in February 2008.
North Dakota Century Code Chapter 54-27.2 provides that any amount in the general fund at the end of a biennium in excess
of $65 million must be transferred to the budget stabilization fund except that, beginning July 1, 2009, the balance in the
budget stabilization fund may not exceed 10 percent of the general fund budget approved by the most recently adjourned
Legislative Assembly. House Bill No. 1419 (2009) increases the maximum balance in the fund to 12.5 percent. The amount
shown reflects the current estimated 2009-11 biennium general fund appropriations of $3,134,581,237; therefore, the
maximum balance in the fund is limited to $391,822,655.
Beginning balance - Executive budget unobligated general fund cash balance - July 1, 2009
Estimated June 30, 2011, Fund Balance Summary
Executive Current Increase
Recommendation Budget Status (Decrease)
General fund $64,792,277 ($281,230,902) ($346,023,179)
Permanent oil tax trust fund 829,047,147 342,833,147 (486,214,000)
Budget stabilization fund 311,092,167 391,822,655 80,730,488
Total $1,204,931,591 $453,424,900 ($751,506,691)
This summary and additional detail are available online at www.state.nd.us/lr/fiscal/biennium-reports/61-2009/budget-status/.