North Dakota state budget

From Sunshine Review

National Taxpayers Union
State budgets Public employee salaries Public pensions States with spending online Collaborative transparency projects Model transparency legislation State Budget Solutions
Action center
Sign up for e-updates Take action

North Dakota neither faced a budget deficit for its 2007-2009 biennium nor for its 2009-2011 biennium. 2007-2009 General Fund revenue was $2.5 billion. 2009-2011 biennium General Fund revenue is forecast to be $2.6 billion.

See also: The North Dakota State Budget on State Budget Solutions

[edit] FY2012-13 State Budget

North Dakota Gov. John Hoeven asked state agencies to identify potential reductions of up to 3% when drafting spending plans for FY2012-13.^[1]

The state's human resources agency recommended increases in salaries for elected officials after evaluating the salaries of elected officials in 10 other states.^[2] The only position not seeing an increase in salary is that of lieutenant governor.^[2] Ken Purdy, a state compensation manager, told the Legislature's interim Government Services Committee that the pay of North Dakota's elected officeholders's salaries could be set at the median of the 10 states every two years, which would cost the state approximately $483,000 in FY2012-13.^[2]

[edit] FY2010-11 State Budget

Gov. John Hoeven's budget recommendation for the 2009-2011 biennium included no tax increases, no fee increases and no borrowing or bonding with $400 million in tax relief. In total, the general fund budget recommendation was $3.111 billion and the entire budget recommendation, including federal and special funds, was $7.710 billion. The 2009 Legislative Assembly increased the Governor’s total budget by $1.139 billion or 14.8 percent. A large part of the increases from the Governor’s recommendation to the legislative appropriation is a result of the the federal stimulus package. Those dollars were incorporated into appropriation bills.^[3]

The North Dakota Legislative Assembly increased the General Fund 2009-2011 biennium to $3.25 billion and Total Funds to $8.49 billion. Unlike most states that have included furloughs and layoffs to balance their budgets, North Dakota approved compensation package raises for state employees that include funds for a 5 percent average salary increase with a minimum increase of $100 per month effective July 1, 2009, and another 5 percent average salary increase with a minimum increase of $100 per month effective July 1, 2010.^[4]

The state will receive approximately $43 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.^[5]

After gathering information from state agencies regarding their requested budget for the upcoming biennium, the Office of Management and Budget completed the Governor’s recommended budget, which was presented to the legislature in December of 2008. The legislature convened from January 5 through May 5, 2009 to consider the Governor’s budget and enact the appropriations bills which set the budget for the upcoming biennium.^[6]

[edit] Oil Revenues

$71 million of the state's $3.2 billion general fund budget comes from oil revenues.^[1] North Dakota has a low tax burden on its residents, ranking 33rd of the 50 states, but has high tax collections, ranking 6th in the nation.^[7] The disparity comes from oil, which the state taxes before it is sold to people outside of the state.^[7]

[edit] Budget Background

The 2009-11 biennium began July 1, 2009, and ends June 30, 2011.^[8]

North Dakota’s Legislature meets for up to a total of 80 days beginning in January and usually concluding in April of each odd-numbered year. Prior to the completion of the Governor's recommended budget the Governor takes into account individual agency requests, prior budget figures and projected revenue data. Both the House and the Senate receive the Governor’s executive budget recommendation during its organizational session in the December preceding the legislative session. Once passed by both chambers of the Legislature, each bill is delivered to the Governor for signature. According to the North Dakota Century Code, which includes the State Constitution, states that the Emergency Commission has the authority to approve agency requests for line item transfers, for acceptance of additional federal and other funds, and for use of state contingencies appropriations. ^[9]

Fiscal Year	Expenditures (billions)	GDP (billions)
2000	$4.0 [10]	$17.8 [10]
2001	$4.1 [10]	$18.5 [10]
2002	$4.2 [10]	$19.9 [10]
2003	$4.3 [10]	$21.7 [10]
2004	$4.5 [10]	$22.7 [10]
2005	$4.8 [10]	$24.6 [10]
2006	$4.9 [10]	$25.9 [10]
2007	$5.1 [10]	$27.7 [10]
2008	$5.2 [10]	$29.7 [10]
2009	$5.3* [10]	$31.9* [10]

• NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
• See North Dakota state budget (2008-2009) for more information.

[edit] Budget transparency

North Dakota currently has no statewide, official spending database online, although in May 2009, legislation (Senate Bill 2018) passed that mandates a website be created by June 30, 2011.^[11]

On March 3, 2009, Joshua Culling, State Government Affairs Manager for showmethespending.com Coalition member the National Taxpayers Union, issued a letter to support transparency in North Dakota. Representative Thoreson's transparency legislation, House Bill 1377, mandated that the Director of the Budget create a searchable online database of state expenditures by January 1, 2010. This bill passed the ND House in the spring of 2009, but did not move past the Senate. The bill that the governor signed in May 2009, North Dakota Senate Bill 2018, requires that a website be created by June 30, 2011.^[11]

[edit] Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases

State Database	Searchability	Grants	Contracts	Line Item Expenditures	Dept/Agency Budgets	Public Employee Salary	Exemption Level
None	n/a	n/a	n/a	n/a	n/a	n/a	n/a

See also: Evaluation of North Dakota state website

[edit] Economic Stimulus Transparency

• North Dakota said it had been awarded nearly $480 million in American Recovery and Reinvestment Plan funds and had spent $175.5 million of these dollars as of December 31, 2009.^[12] The state's Office of Management and Budget noted that, of the 2,097 jobs were funded in whole or in part with ARRP funds, 40 of those were in state agencies and the rest were private sector positions and many were not new positions, but rather existed prior to ARRA. When the ARRA funding evaporates, the positions will revert to their original funding sources. If additional funding is not available, the positions will be eliminated.^[12]

• Lawmakers on the appropriation committees in the legislature have been meeting to discuss plans with the state's ARRA funds.

One North Dakota project was noted in Senator Coburn and Senator McCain's "Summertime Blues, 100 stimulus projects that give taxpayers the blues" report. The Audubon National Wildlife Refuge, located about an hour north of Bismarck and visited by less than 80 people a day on average will get a new administration and visitor center using $6 million in stimulus funds.^[13]

[edit] Error in ARRP

On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.^[14][15]

The ARRP website reports that more than $2 million was given to the 99th District of North Dakota, a state that has only one Congressional District. In order to qualify for 99 districts, North Dakota would have to have a population of about 60 million people, almost 24 million more people than California. The non-existent Districts received $119,260,169 to "create/save" 264.2 jobs.^[16]

[edit] Independent transparency sites

The North Dakota Policy Council sponsors a website on school transparency, www.sunshineonschools.org.

[edit] Public employee salary information

See also North Dakota state government salary

• A listing of the North Dakota state payroll from 2008 is posted here.

[edit] Accounting Principles

Main article: North Dakota government accounting principles

The North Dakota Office of the State Auditor (OSA) is divided into three operational divisions.^[17]

• 1. Division of State Audit
• 2. Division of Local Government Audit
• 3. Division of Royalty Audit

The OSA publishes its audit reports online. The State Auditor is a constitutionally elected state official. Robert R. Peterson has been State Auditor since his election in 2000.^[18]

The Institute for Truth in Accounting (IFTA) rates North Dakota “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider North Dakota's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.^[19] North Dakota's CAFRs are prepared and published online by the [North Dakota Office of Management and Budget] and is prepared by the Fiscal Management Division.^[20]

Credit Rating	Fitch	Moody's	S&P
North Dakota[21]	NR	Aa2	AA+

[edit] Economic Stimulus Package

North Dakota is expected to receive approximately $650 million of the $787 billion dollar economic stimulus package. ^[22] According to White House officials the package is expected to create approximately 8,000 jobs. ^[23]

According to preliminary reports North Dakota is expected to receive:

• $485,000 for senior nutrition programs ^[24]
• $32 million for education funding ^[25]
• $175 million for transportation infrastructure ^[25]
• $76 million towards Medicaid ^[25]
• $19 million for Clean Water ^[26]
• $25 million towards weatherization ^[26]
• $10 million for energy efficiency and conservation ^[26]

[edit] See Also

North Dakota taxpayer-funded lobbying

[edit] External links

[edit] Additional reading

• Gov. Hoeven,"2009 State of the State Address," January 6,2009
• Gov. Hoeven,"2009-2011 budget address," December 3,2008
• State of North Dakota,"Revised revenue forecast," February 9,2009

[edit] References

v • d • e State Budgets Cost of state transparency websites • State budget issues • Pubic employee salaries • Public pensions • States with spending online • Glossary of state budget terms Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming •

	v • d • e State of North Dakota Bismarck (capital)
Transparency	Open Records Statute | Transparency Checklist | Government corruption reports | Transparency Legislation | Open Records procedures | Transparency Advocates | Transparency blogs | State budget | Taxpayer-funded lobbying associations |
Divisions	State | List of Counties | List of Cities | List of Towns | List of School Districts | Evaluation of county websites | Evaluation of city websites | Evaluation of township websites | Evaluation of school district websites |
Government	North Dakota State Constitution | Executive | House of Representatives | Senate |
Judiciary	North Dakota Supreme Court | Court of Appeals | District Courts | Municipal Courts | Judicial Nominating Commission | Judicial news |
Ballot Measures	Ballot measures | List of ballot measures by year | Procedures for qualifying an initiative | Laws governing the initiative process in North Dakota | Signature requirements | History of direct democracy | Campaign finance requirements | Vote fraud |