Historical North Dakota budget and finance information

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The historical North Dakota budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding North Dakota's budget and finances, click here.

As published 2016

North Dakota budget and finances

General information

Budget calendar: Biennial

Fiscal year: 2017

State credit rating: AAA (as of 2014)

Current governor: Jack Dalrymple

Financial figures

Total spending (state and federal funds): $7.7 billion (estimated for 2015)

Per capita spending: $10,236.13 (estimated for 2015)

Total state tax collections: $6.1 billion (2014)

Per capita tax collections: $8,270.41 (2014)

State debt: $9.3 billion (as of 2014)

Per capita state debt: $13,241 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in North Dakota

In North Dakota, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in North Dakota increased by approximately $1.2 billion—from $6.6 billion in fiscal year 2014 to an estimated $7.7 billion in 2015. This represents a 15.1-percent increase.

In North Dakota in fiscal year 2014, 30.2 percent of total tax revenues came from sales and gross receipts.

Education accounted for 33.1 percent of state expenditures in fiscal year 2015, while 12.9 percent went to Medicaid.

The North Dakota state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.

Compared to neighboring states, North Dakota had the highest state tax collections per capita, at $8,270.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
North Dakota	$3,026	$1,848,130	$227,245	$748,966	$3,293,068	$6,120,435	740,040	$8,270
Minnesota	$836,743	$9,759,346	$1,314,463	$10,844,216	$374,133	$23,128,901	5,457,125	$4,238
Montana	$268,508	$550,254	$314,271	$1,213,400	$309,120	$2,655,553	1,023,252	$2,595
South Dakota	N/A	$1,296,748	$277,787	$24,819	$9,142	$1,608,496	853,304	$1,885
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

North Dakota tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 30.2 percent of North Dakota's total state tax collections came from sales taxes and gross receipts.

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
North Dakota	0.0%	30.2%	3.7%	12.2%	53.8%
Minnesota	3.6%	42.2%	5.7%	46.9%	1.6%
Montana	10.1%	20.7%	11.8%	45.7%	11.6%
South Dakota	N/A	80.6%	17.3%	1.5%	0.6%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of North Dakota’s general revenues came from the federal government in 2013. That year, North Dakota received approximately $1.5 billion in federal aid, 19.0 percent of the state's total general revenues. Taking into consideration the state's 2013 population, this came out to about $2,114 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
North Dakota	$1,529,135	19.0%	50	723,393	$2,114
Minnesota	$9,141,995	26.4%	39	5,420,380	$1,687
Montana	$2,158,227	37.4%	6	1,015,165	$2,126
South Dakota	$1,575,212	39.0%	4	844,877	$1,864
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

North Dakota's total estimated government spending in fiscal year 2015 was $7.7 billion, which was the second highest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
North Dakota	$6,074	$1,674	$7,748	756,927	$10,236.13
Minnesota	$24,613	$10,601	$35,214	5,489,594	$6,414.68
Montana	$4,194	$2,189	$6,383	1,032,949	$6,179.40
South Dakota	$2,542	$1,347	$3,889	858,469	$4,530.16
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in North Dakota can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2014, transportation accounted for 19 percent of North Dakota's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
North Dakota	15.8%	17.3%	0.1%	12.9%	1.6%	19.0%	33.4%
Minnesota	28.2%	4.4%	1.5%	29.8%	1.5%	9.5%	25.1%
Montana	15.7%	10.4%	0.5%	17.0%	3.2%	11.4%	41.9%
South Dakota	14.0%	21.6%	0.7%	20.3%	2.7%	14.5%	26.3%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2010 and 2014, the share of the North Dakota state budget spent on transportation increased from 11.3 percent in 2010 to 19 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	15.8%	17.3%	0.1%	12.9%	1.6%	19.0%	33.4%
2013	15%	19%	0.1%	13.7%	1.9%	16.1%	34.2%
2012	13.8%	17.7%	0.1%	12.1%	1.9%	16.4%	38.0%
2011	15.8%	20.6%	0.1%	14.3%	1.8%	12.4%	35.0%
2010	16.6%	20.7%	0.2%	13.7%	1.8%	11.3%	35.8%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Fiscal year budgets

See also: Historical North Dakota budget and finance information

Fiscal years 2016 and 2017

See budget bill: Legislative Appropriations 2015-2017 Biennium (overview document)

Governor Jack Dalrymple proposed his budget for the 2016-2017 biennium on December 3, 2014. The proposal also outlined certain investments, including infrastructure improvements, that were intended to capitalize on the state's growing economy.

Governor Dalrymple signed the state's budget into law in April 2015. The state's total spending for the biennium was set at $14.2 billion, including a general fund budget of $6.02 billion. Investments in K-12 and pre-K education programs, as well as investments in infrastructure and transportation, were among the highlights of the budget.

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, North Dakota had a state debt of approximately $9.3 billion in 2014. Its state debt per capita was $13,241. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
North Dakota	$9,263,742,000	$13,241	30
Minnesota	$85,879,526,000	$15,965	21
Montana	$15,769,183,000	$15,689	22
South Dakota	$7,707,458,000	$9,249	46
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), North Dakota ranked 2nd best in the country in “taxpayer surplus.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of North Dakota’s Comprehensive Annual Financial Report from June 30, 2014, and actuarial reports for the state’s retirement plans, TIA concluded that $345.2 million in promised retirement benefits were unfunded, but only $872,000 of these liabilities were reported on North Dakota’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a surplus of $8.1 billion, or a taxpayer surplus of $28,400.

Public pensions

See also: North Dakota public pensions and North Dakota public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of North Dakota's state-administered pension plans decreased from 93.3 percent to 66.3 percent. The state paid 53 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $890.5 million. This amounted to $1,350 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for North Dakota and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
North Dakota	AAA	AAA	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA-
Minnesota	AA+	AA+	AA+	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Montana	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-	AA-
South Dakota	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Economic indicators

See also: Economic indicators by state

North Dakota's GDP increased by 6.3 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

In September 2014, North Dakota had the lowest unemployment rate in the country at 2.8 percent. Its median annual household income was $55,583, and most North Dakota residents earned incomes at least 400 percent of the federal poverty level.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
North Dakota	10%	17%	33%	40%	$55,583	2.8%	2.8%	$56,329
Montana	15%	19%	35%	31%	$43,924	5.6%	4.6%	$44,040
South Dakota	11%	17%	35%	37%	$50,488	3.7%	3.4%	$46,732
Wyoming	12%	18%	31%	39%	$56,569	4.6%	4.7%	$45,432
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official North Dakota budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. North Dakota CAFR North Dakota budget agency

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies between April and May of the year preceding the start of the new biennium.
2. State agencies submit their budget requests to the governor between July and October.
3. The governor submits his or her proposed budget to the state legislature in December.
4. The legislature typically adopts a budget in April. A simple majority is required to pass a budget. The new biennium begins in July.

North Dakota is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the state legislature is required to pass a balanced budget.

Agencies, offices, and committees

There are four major standing committees in the North Dakota Legislative Assembly that play a part in budget and financial matters: the North Dakota House Appropriations Committee, the North Dakota House Finance and Taxation Committee, the North Dakota Senate Appropriations Committee, and the North Dakota Senate Finance and Taxation Committee.

Transparency

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, North Dakota received a grade of D+ and a numerical score of 64, indicating that North Dakota was "Lagging" in terms of transparency regarding state spending.

As published 2015

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

Between fiscal years 2013 and 2014, total government spending in North Dakota increased by approximately $1.1 billion, from $5.7 billion in fiscal year 2013 to an estimated $6.8 billion in 2014. This represented an 18.8 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned North Dakota a credit rating of AAA.

HIGHLIGHTS

In fiscal year 2014, estimated per capita spending in North Dakota equaled $9,163, the fifth-highest in the nation.

Expenditures

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

In North Dakota, total estimated spending in fiscal year 2014 equaled $6.8 billion.

Total estimated state spending, FY 2014 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
North Dakota	$5,186	$1,590	$6,776	739,482	$9,163.17
Minnesota	$25,861	$9,492	$35,353	5,457,173	$6,478.26
Montana	$4,039	$2,149	$6,188	1,023,579	$6,045.45
South Dakota	$2,669	$1,420	$4,089	853,175	$4,792.69
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures

Breakdown of spending by function in FY 2013.
Source: National Association of State Budget Officers

State spending in North Dakota can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

With the exception of spending that qualifies as "other," the largest portion of North Dakota's spending went to higher education.

State spending by function as a percent of total expenditures, FY 2013
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
North Dakota	15%	19%	0.1%	13.7%	1.9%	16.1%	34.2%
Minnesota	29.2%	4.7%	1.4%	24.3%	1.5%	10.7%	28.2%
Montana	15.5%	10.1%	0.5%	17.9%	3.2%	11%	41.8%
South Dakota	14.1%	22.3%	0.7%	19.9%	2.5%	15%	25.5%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2009 and 2013, the share of the North Dakota state budget spent on transportation increased from 11.7 percent to 16.1 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2009 to 2013 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2013	15%	19%	0.1%	13.7%	1.9%	16.1%	34.2%
2012	13.8%	17.7%	0.1%	12.1%	1.9%	16.4%	38.0%
2011	15.8%	20.6%	0.1%	14.3%	1.8%	12.4%	35.0%
2010	16.6%	20.7%	0.2%	13.7%	1.8%	11.3%	35.8%
2009	14.0%	22.7%	0.3%	14.1%	2.0%	11.7%	25.4%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.

About $1.8 billion of North Dakota's total revenue in 2013 came from sales taxes and gross receipts. This accounted for about one-third of the state's total revenue for that year.

State tax collections by source ($ in thousands)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes	Total	2013 population	Per capita collections
North Dakota	$2,808	$1,763,437	$207,482	$641,766	$225,719	$2,457,558	$5,298,770	723,857	$7,320.19
Minnesota	$821,799	$8,289,780	$1,184,465	$8,950,755	$1,363,128	$421,882	$21,031,809	5,422,060	$3,878.93
Montana	$262,313	$558,961	$320,858	$1,045,500	$170,999	$285,979	$2,644,610	1,014,864	$2,605.88
South Dakota	N/A	$1,228,262	$257,220	N/A	$37,172	$11,009	$1,533,663	845,510	$1,813.89
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

North Dakota tax collections by source in 2013.
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. About 46 percent of North Dakota's total tax collections came from sources classified as "other."

State tax collections by source (as percentages)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes
North Dakota	0.05%	33.28%	3.92%	12.11%	4.26%	46.38%
Minnesota	3.91%	39.42%	5.63%	42.56%	6.48%	2.01%
Montana	9.92%	21.14%	12.13%	39.53%	6.47%	10.81%
South Dakota	N/A	80.09%	16.77%	N/A	2.42%	0.72%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, North Dakota had a state debt of approximately $9.3 billion in 2014. Its state debt per capita was $13,241. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
North Dakota	$9,263,742,000	$13,241	30
Minnesota	$85,879,526,000	$15,965	21
Montana	$15,769,183,000	$15,689	22
South Dakota	$7,707,458,000	$9,249	46
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: North Dakota public pensions and North Dakota public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of North Dakota's state-administered pension plans decreased from 93.3 percent to 66.3 percent. The state paid 53 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $890.5 million. This amounted to $1,350 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for North Dakota and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
North Dakota	AAA	AAA	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA-
Minnesota	AA+	AA+	AA+	AAA	AAA	AAA	AAA	AAA	AAA	AAA	AAA
Montana	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA-	AA-
South Dakota	AA+	AA+	AA+	AA+	AA	AA	AA	AA	AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.

The table below notes what share of North Dakota’s general revenues came from the federal government in 2012. That year, North Dakota received approximately $1.8 billion in federal aid, nearly 25 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2012
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenue	Ranking
North Dakota	$1,750,134	24.76%	45
Minnesota	$9,608,018	28.13%	39
Montana	$2,202,444	38.97%	6
South Dakota	$1,630,220	40.84%	4
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

North Dakota received $1.10 billion in federal stimulus funding between February 2009 and June 2013.

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies between April and May of the year preceding the start of the new biennium.
2. State agencies submit their budget requests to the governor between July and October.
3. The governor submits his or her proposed budget to the state legislature in December.
4. The legislature typically adopts a budget in April. A simple majority is required to pass a budget. The new biennium begins in July.

North Dakota is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the state legislature is required to pass a balanced budget.

Agencies, offices, and committees

There are four major standing committees in the North Dakota Legislative Assembly: the North Dakota House Appropriations Committee, the North Dakota House Finance and Taxation Committee, the North Dakota Senate Appropriations Committee and the North Dakota Senate Finance and Taxation Committee.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured the transparency and accountability of state websites with regard to state government spending. According to the report, North Dakota received a grade of D and a numerical score of 56, indicating that North Dakota was lagging in terms of transparency regarding state spending.

As published 2014

The information on this tab contains: Spending (fiscal year 2013) Spending by function (fiscal year 2012) Spending trends (fiscal years 2008 to 2012) Revenues (fiscal year 2013) Historical spending (fiscal years 2009 to 2012) Budget transparency

Between fiscal year 2009 and fiscal year 2013, North Dakota's total expenditures increased by approximately $1.998 billion, from $3.941 billion in 2009 to $5.939 billion in 2013. This represented a 50.70 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).

Spending

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:

• General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
• Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
• Federal funds: "Funds received directly from the federal government."
• Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013

Breakdown of expenditures in FY 2013
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures
North Dakota	$2,220	$1,621	$2,072	$26	$5,939	$8,209.92
Minnesota	$20,056	$8,637	$6,263	$810	$35,766	$6,598.43
Montana	$1,947	$2,115	$1,978	$0	$6,040	$5,949.77
South Dakota	$1,302	$1,487	$1,307	$35	$4,131	$4,889.47
Per-capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Spending by function

2012

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in North Dakota can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)
State	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
North Dakota	13.8%	17.7%	0.1%	12.1%	1.9%	16.4%	38.0%
Minnesota	23.8%	9.7%	1.4%	27.6%	1.5%	8.3%	27.7%
Montana	15.5%	9.8%	0.5%	16.8%	3.1%	12.7%	41.5%
South Dakota	14.3%	17.7%	0.8%	20.9%	2.7%	15.9%	27.7%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

From 2008 to 2012, higher education spending in North Dakota fell by nearly six percentage points, or 24.7 percent, as a share of the budget. During the same period, transportation expenditures rose by 4.40 percentage points, or 36.7 percent, as a share of the budget. The table below details changes in expenditures from 2008 to 2012. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2012	13.8%	17.7%	0.1%	12.1%	1.9%	16.4%	38.0%
2011	15.8%	20.6%	0.1%	14.3%	1.8%	12.4%	35.0%
2010	16.6%	20.7%	0.2%	13.7%	1.8%	11.3%	35.8%
2009	14.0%	22.7%	0.3%	14.1%	2.0%	11.7%	25.4%
2008	14.5%	23.5%	0.3%	15.1%	2.0%	12.0%	32.6%
Change in %	-0.70%	-5.80%	-0.20%	-3.00%	-0.10%	4.40%	5.40%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
North Dakota	$1,256	$596	$162	$5	$528	$2,547	$3,520.91
Minnesota	$4,817	$8,649	$1,165	$39	$2,786	$17,456	$3,220.44
Montana	$62	$1,048	$177	$57	$734	$2,078	$2,046.96
South Dakota	$776	$0	$0	$1	$587	$1,364	$1,614.44
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013. Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, North Dakota ($ in millions)
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
2013	$1,256	$596	$162	$5	$528	$2,547	$3,520.91
2012	$1,154	$430	$199	$6	$731	$2,520	$3,593.10
2011	$782	$428	$147	$8	$342	$1,707	$2,492.45
2010	$610	$302	$88	$8	$529	$1,536	$2,277.77
2009	$622	$375	$99	$10	$248	$1,354	$2,093.24
Change in %	101.93%	58.93%	63.64%	-50.00%	112.90%	88.11%	68.20%
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Historical spending

The information on state budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).

Historical state spending in North Dakota ($ in millions)
Fiscal year	General Fund		Other funds		Federal funds		Bonds		Budget totals
	Total	% of Budget	Total	% of Budget	Total	% of Budget	Total	% of Budget
2011-2012	$2,222	37%	$1,910	32%	$1,884	31%	$11	0%	$6,027
2010-2011	$1,615	32%	$1,568	31%	$1,813	36%	$21	0%	$5,017
2009-2010	$1,595	33%	$1,394	29%	$1,857	38%	$20	0%	$4,866
Averages:	$1,811	34%	$1,624	31%	$1,851	35%	$17	0%	$5,303

Budget transparency

Transparency evaluation
	OMB Transparency
Searchability	N
Grants	N
Contracts	N
Line item expenditures	Y
Dept./agency budgets	Y
Public employee salaries	P
Last evaluation date unknown.

See also: Evaluation of North Dakota state website and Constitutional provisions regarding reading of bills

Legislation was passed in May 2009 (Senate Bill 2018) that mandated the creation of a statewide spending database. The database was set to be completed by June 30, 2011.

The table to the right is helpful in evaluating the level of transparency provided by the state's spending website.

Independent transparency sites

The North Dakota Policy Council sponsors a website on school transparency.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for North Dakota, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented 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.

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. North Dakota tied for 33rd in the nation with 12 other states, earning four out of eight possible points.

North Dakota - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget	N
Multi-year forecasting	N
Annual cycle	N
Binding revenue forecast
Legislative revenue forecast
Nonpartisan staff	Y
Constitution or statutory tax/spend limitations	N
TOTAL	4

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.

Prior fiscal year budgets

Fiscal years 2016 and 2017

See budget bill: Legislative Appropriations 2015-2017 Biennium (overview document)

Governor Jack Dalrymple proposed his budget for the 2016-2017 biennium on December 3, 2014. The proposal also outlined certain investments, including infrastructure improvements, that were intended to capitalize on the state's growing economy.

Governor Dalrymple signed the state's budget into law in April 2015. The state's total spending for the biennium was set at $14.2 billion, including a general fund budget of $6.02 billion. Investments in K-12 and pre-K education programs, as well as investments in infrastructure and transportation, were among the highlights of the budget.

Fiscal years 2014 and 2015

See budget bill: Legislative Appropriations 2013-15 Biennium (overview document)

North Dakota does not pass a single, all-encompassing appropriation bill, but rather several appropriation bills that together comprise the biennial budget. For a detailed overview of the 2013-2015 biennial budget, click here.

Fiscal years 2012 and 2013

See also: North Dakota state budget (2011-2013)

Fiscal year 2011

See also: North Dakota state budget (2010-2011)

Fiscal year 2010

See also: North Dakota state budget (2009-2010)

See also

• North Dakota state budget and finances