North Dakota state budget
Contents |
| North Dakota | |
| Biennial | |
| Fiscal Year | 2012-2013 |
| GF Revenue | |
North Dakota's FY2012-13 $4.1 billion[1] state budget can be found here.
The state operates on a biennial budget cycle that currently encompasses FY2012 and FY2013. Each fiscal year begins on July 1.[2]
North Dakota has a total state debt of approximately $6,116,162,000 when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget gap.[3] The FY2013 state budget deal is less than the FY2012 state debt total of $6,255,605,000.[4]
North Dakota's total state debt per capita is $8,942.65.[5]
According to a 2012 study by 24/7 Wall Street, North Dakota is the best run state taking into account debt per capita, budget deficits, unemployment, median household income, and the percentage of the percentage of the population below the poverty line. The worst run state is California. [6]
Economic Freedom
A new Fraser Institute report on economic freedom ranks North Dakota 27th in economic Freedom. Delaware ranks 1st and New Mexico ranks 50th. The study examines the impact of economic freedom on both the level of economic activity and the growth of economic activity. According to the study, the freest economies operate with minimal government interference, relying upon personal choice and markets to answer basic economic questions. More governmental restrictions on those choices curbs economic freedom. The study looks at three major categories per state – size of government, taxes and regulations. [7]
Federal Aid to State Budget
The chart below represents how much of the state’s budget comes from the federal government. The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):
| State | 2008 | 2009 | 2010 | 2011 |
| North Dakota | 26.49% (#35) | 27.47% (#43) | 32.16% (#41) | 25.99% (#48) |
Figures are calculated by dividing each state’s intergovernmental revenue into its general revenue. Data is available at in U.S. Census.
FY2014-15 State Budget
On Dec. 5, 2012, Gov. Jack Dalrymple delivered his 2013-2015 Executive Budget Address, the text of which can be found here. The governor's proposed budget for the 2013-15 biennium is based on revenues during the 2013-2015 biennium of approximately $4.8 billion and includes expenditures totaling $3.8 billion.[8]
It includes:
- $500 million in additional tax reductions;[8]
- $991 million in one-time General Fund expenditures for road and highway projects as well as educational infrastructure and enhancements for emergency services, law enforcement and agricultural research;[8]
- $60 million for flood prevention[9]
- $89 million more in total for colleges and universities.[9]
FY2012-13 State Budget
- See past state budgets
The 2011-13 state budget presumes general fund revenues of $4.1 billion.[10]
The state's human resources agency recommended increases in salaries for elected officials after evaluating the salaries of elected officials in 10 other states.[11] The only position not seeing an increase in salary is that of lieutenant governor.[11] 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.[11]
The appropriations for each agency as presented in the governor's proposed budget can be found here.
The 2011-13 budget can be found here.
Budget transparency
- See sample transparency legislation at the Sunshine Standard
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.[12]
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.[12]
Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary |
|---|---|---|---|---|---|---|
| OMB Transparency |  |
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| State Procurement Office | |
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- See also: Evaluation of North Dakota state website
- The OMB Transparency site provides agency and department payrolls, but not individual employee salaries.[13]
Independent transparency sites
The North Dakota Policy Council sponsors a website on school transparency, www.sunshineonschools.org.
Multi-Measure Budget Transparency Profile
The Institute of Government and Public Affairs at the University of Illinois has created a multi-measure transparency profile for North Dakota, which measures state transparency as of September 2011 using indicators from a range of organizations, including Sunshine Review. These indicators measure both website transparency and other recognized facets of governmental transparency. In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.
Budget Background
The 2009-11 biennium began July 1, 2009, and ends June 30, 2011.[14]
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. [15]
Accounting Principles
The North Dakota Office of the State Auditor (OSA) is divided into three operational divisions.[16]
- 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.[17]
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.[18] 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.[19]
| Credit Rating | Fitch | Moody's | S&P |
| North Dakota[20] | NR | Aa2 | AA+ |
Stimulus
North Dakota has received $0.66 billion in federal funding from the American Recovery and Reinvestment Act of 2009.[21]
Public Employees
According to 2008 Census data, the state of North Dakota and local governments in the state employed a total of 60,528 people.[22] Of those employees, 34,376 were full-time employees receiving a net pay of $125,555,635 per month and 26,152 were part-time employees paid $15,835,009 per month.[22] More than 48% of those employees, or 29,397 employees, were in education or higher education.[22]
External links
- State Budget Solutions, North Dakota
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- North Dakota Policy Council
- North Dakota Office of Management and Budget
- North Dakota Budget and Fiscal Reports
- North Dakota Government spending
- North Dakota state and local spending
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
References
- ↑ [1]
- ↑ National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011
- ↑ State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012
- ↑ State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011
- ↑ State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012
- ↑ Yahoo, The Best- and Worst-Run States in America, Nov. 27, 2012
- ↑ Fraser Institute, Economic Freedom of North America 2012
- ↑ 8.0 8.1 8.2 ND.gov 2013-2015 Executive Budget Address Dec. 5, 2012
- ↑ 9.0 9.1 The Minot Daily News "Gov.’s budget includes money for Minot" Dec. 7, 2012
- ↑ [2]
- ↑ 11.0 11.1 11.2 Businessweek "Plan would grant raises for ND elected officials" Aug. 19, 2010
- ↑ 12.0 12.1 North Dakota Policy Council, "State to post expenditures online," May 10, 2009
- ↑ OMB Transparency
- ↑ North Dakota Office of Management and Budget, "2009-11 Budget Highlights," July 2009
- ↑ North Dakota Legislative Branch,"Budget Process," December 5,2008
- ↑ North Dakota Office of the State Auditor Web site, retrieved November 4, 2009
- ↑ Project Vote Smart Web site, retrieved November 4, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ North Dakota Office of Management and Budget Web site, retrieved November 4, 2009
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ Recovery, "Stimulus Spending by State"
- ↑ 22.0 22.1 22.2 2008 North Dakota Public Employment U.S. Census Data
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