State of North Dakota Budget Status....

Prepared by the North Dakota Legislative Council
staff
Beginning Balance and Revenues
Legislative budget estimate of unobligated general fund cash balance - July 1, 2009 $321,091,738 1
Add 2009-11 estimated revenues
Proposed executive budget general fund revenues $2,783,873,000
Legislative revenue changes
Major increases
HB 1015 - Provides for a transfer from the permanent oil tax trust fund $140,000,000
HB 1279 - Reduces individual income tax rates (executive recommendation) (Defeated) 100,000,000
SB 2199 - Provides for a transfer from the permanent oil tax trust fund 295,000,000
SB 2014 - Provides a transfer from the Bank of North Dakota for Ag PACE disaster program 1,000,000
SB 2014 - Increases the transfer from the State Mill and Elevator 2,235,836
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 1256 - Provides an income tax reduction for certain qualified dividends (4,600,000)
HB 1317 - Reduces the pull tab excise tax (3,683,070)
(2,500,000)
HB 1485 - Maintains the general fund share of oil and gas taxes at $71 million (Defeated) (39,000,000)
SB 2004 - Provides for emergency medical services grants (1,500,000)
SB 2012 - Decreases the general fund share of motor vehicle excise taxes (30,464,750)
SB 2013 - Reduces the transfer from the lands and minerals trust fund (8,500,000)
SB 2014 - Removes the transfer from the Bank of North Dakota (60,000,000)
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 (4,416,000)
SB 2199 - Reduces individual and corporate income taxes (100,000,000)
SB 2221 - Creates a credit against coal conversion privilege taxes (7,420,000)
Other increases (decreases) (2,981,894)
Total legislative changes affecting revenues $173,930,122
Total estimated general fund revenues and beginning balance - 2009-11 $3,278,894,860
Appropriations
Executive budget general fund appropriations - 2009-11 $3,110,921,665
Legislative appropriations changes
Major increases
SB 2199 - Property tax relief $295,000,000
HB 1481 - Heritage Center expansion 39,700,000
SB 2030 - State Penitentiary project 19,465,804
SB 2018 - Department of Commerce 12,541,264
SB 2444 - Flood disaster relief 12,500,000
SB 2025 - Veterans' Home construction 7,944,991
HB 1350 - Grant for construction of applied energy research center 5,000,000
HB 1006 - State Tax Commissioner 4,028,795
3,389,414
HB 1400 - Education programs 2,900,000
SB 2201 - Property tax credit for disabled veterans 3,000,000
SB 2004 - State Department of Health 1,997,227
SB 2225 - Child care provider grants 1,820,000
HB 1020 - State Water Commission 1,330,701
SB 2333 - Local public health unit immunizations 1,475,000
HB 1043 - Dementia care services program 1,200,000
HB 1019 - Parks and Recreation Department 1,118,091
Major decreases
SB 2012 - Department of Transportation (115,400,000)
HB 1012 - Department of Human Services (73,428,430)
SB 2015 - Department of Corrections and Rehabilitation (28,807,658)
SB 2003 - North Dakota University System (20,928,804)
HB 1018 - State Historical Society (18,360,555)
HB 1013 - Department of Public Instruction (7,949,095)
SB 2009 - State Fair (2,000,000)
HB 1022 - Retirement and investment agencies (5,000,000)
SB 2021 - Information Technology Department (2,329,074)
HB 1003 - Attorney General (2,251,570)
Other increases (decreases) net 487,715
Total legislative changes affecting appropriations $138,443,816
Total 2009-11 general fund appropriations $3,249,365,481
Estimated Ending Balance
Estimated budget status general fund balance - June 30, 2011 $29,529,379
SB 2075 - Veterans' Home improvements
HB 1428 - Raises the maximum aggregate income tax credit for renaissance zone investments
May 5, 2009
AS OF MAY 4, 2009 (Tentative Final)
2009-11 BUDGET STATUS SUMMARY
Comparison of 2009-11 General Fund Appropriations to 2007-09 Appropriations
Current status of 2009-11 general fund appropriations $3,249,365,481
2007-09 legislative general fund appropriations 2,461,973,956 2
Increase (decrease) $787,391,525
Percentage increase (decrease) 31.98%
Footnotes
1 $502,933,109 a
February 2009 revenue forecast revision 18,920,389
(59,900,000)
SB 2012 - Provides a transfer to the disaster relief fund (43,000,000)
SB 2201 - Excludes manufacturer discounts and incentives from motor vehicle excise tax (442,800)
SB 2025 - Supplemental funding for Veterans' Home reflected as 2009-11 appropriation 12,036,404
SB 2090 - Provides tax exemption for Montana residents (46,000)
SB 2393 - Provides for emergency snow removal grants (1,000,000)
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)
30,030,000
Total legislative changes affecting the beginning balance ($56,904,823)
Estimated general fund cash balance prior to budget stabilization fund transfer $446,028,286
Less transfer to budget stabilization fund (124,936,548) b
Estimated unobligated general fund cash balance - July 1, 2009 $321,091,738
a
b
2
Permanent Oil Tax Trust Fund - 2009-11 Biennium1
Beginning balance $474,841,147 1
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 2051) 1,000,000
Changes allocation to oil and gas impact grant fund (HB 1304) 12,000,000
Changes allocations to counties (HB 1304) (20,300,000)
Changes general fund share of oil tax revenues (HB 1485) (Defeated) 39,000,000
Total estimated revenues 323,092,000 2
Total available $797,933,147
Less estimated expenditures
Transfer to the general fund (HB 1015) 140,000,000
Funding for Prairie Public Broadcasting (HB 1015) 1,008,100
Transfer to general fund (SB 2199) 295,000,000
Transfer to property tax relief sustainability fund (SB 2199) 295,000,000
Tribal college assistance grants (HB 1394) 700,000
2,792,000
Higher education building projects (SB 2003) 10,400,000
350,000
Funding for operations of Dickinson Research Center (SB 2020) 925,000
Total estimated expenditures 746,175,100
Ending balance $51,758,047
1
2
SB 2012 - Provides cost-sharing funds for weather-related costs
Water project grants (HB 1305)
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).
Oil extraction tax incentive rates under NDCC Chapter 57-51.1 did not become effective on May 1, 2009, as anticipated in the February
2009 legislative forecast. As a result, oil extraction tax rate incentives approved in HB 1235 became effective. The net effect of these
two changes, if they do not change again prior to June 30, 2011, is estimated to increase permanent oil tax trust fund revenues by $16.5
million for the period beginning May 1, 2009, and ending June 30, 2011. The amount shown does not reflect this estimated increase.
Depending on oil prices, the incentive rates under Chapter 57-51.1 could become effective in October 2009.
The forecasted oil tax revenue collections are based on a number of factors including tax rate incentives and exemptions, oil prices, oil
production, etc.
Actual prices, production and other factors throughout the 2009-11 biennium could increase or decrease actual oil tax revenue
collections by amounts that increase or decrease the $16.5 million discussed above.
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. The amount shown reflects the current estimated 2009-11 biennium general fund appropriations of
$3,249,365,481; therefore, the maximum balance in the fund is limited to $324,936,548.
HB 1012 - Provides additional general fund turnback and carryover authority
Funding for operations of Dickinson State University (SB 2003)
Reflects $250,000 for livestock disaster assistance for the 2007-09 biennium.
Beginning balance - Executive budget unobligated general fund cash balance - July 1, 2009
Budget Stabilization Fund - 2009-11 Biennium
Beginning balance $324,936,548
Estimated revenues
None $0
Total estimated revenues 324,936,548
Less estimated expenditures
None $0
Total estimated expenditures 0
Ending balance $324,936,548
Estimated June 30, 2011, Fund Balance Summary
Executive Current Increase
Recommendation Budget Status (Decrease)
General fund $64,792,277 $29,529,379 ($35,262,898)
Permanent oil tax trust fund 829,047,147 51,758,047 (777,289,100)
Budget stabilization fund 311,092,167 324,936,548 13,844,381
Total $1,204,931,591 $406,223,974 ($798,707,617)
This summary and additional detail are available online at www.state.nd.us/lr/fiscal/biennium-reports/61-2009/budget-status/.