BISMARCK – North Dakota’s budget director ordered a new revenue forecast Friday after state tax revenues fell $40 million short of projections in November, contributing to an overall $152 million shortfall since July that makes it “very likely” state agencies will see across-the-board budget cuts.
Sales tax collections continue to disappoint, falling $50 million short of projections in November and $163 million short since the current biennium began July 1, hurt by depressed farm commodity prices and slumping crude oil prices that have reduced the number of active drilling rigs to 65 from about 190 a year ago.
Office of Management and Budget Director Pam Sharp said the new forecast by Moody’s Analytics will cost $12,000 and should be ready by mid- to late January.
If it projects a revenue shortfall of $400 million to $500 million, the governor may have to tap the state’s $572 million Budget Stabilization Fund to cover appropriations. But first, state agencies that receive general fund appropriations would face across-the-board budget cuts of up to 2.5 percent, or about $105 million.
