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North Dakota state budget (2009-2010)

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Note: This article was last updated in 2010. Click here for more recent information on state budgets and finances.


North Dakota did not face a budget deficit for its 2007-2009 biennium nor for its 2009-2011 biennium. The 2009-2011 biennial budget was $7.710 billion.[1]

North Dakota had a total state debt of $2,348,367,009 when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.[2]

2011 State spending & deficit in billions[3]
Total spending Pension Healthcare Education Welfare Protection Transport Debt Budget gap
$4.1 $0.2 $0.7 $1.0 $0.6 $0.2 $0.5 $1.8 $0
2011 Local spending & deficit in billions[3]
Total spending Pension Healthcare Education Welfare Protection Transport Debt
$2.8 $0.0 $0.0 $1.5 $0.1 $0.2 $0.4 $1.6

FY2010-11 State Budget

See also: Archived North Dakota state budgets

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 federal stimulus package. Those dollars were incorporated into appropriation bills.[4]

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.[5]

The state will receive approximately $43 million from the federal government under HR 1586, a $26 billion plan to give states money for Medicaid and education that the President signed into law on August 10, 2010.[6][7]

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.[8]

Oil Revenues

$71 million of the state's $3.2 billion general fund budget came from oil revenues.[9] 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.[10] The disparity comes from oil, which the state taxes before it is sold to people outside of the state.[10]

Budget background

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

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.[12]

Fiscal Year Expenditures (billions) GDP (billions)
2000 $4.0[13] $17.8[13]
2001 $4.1[13] $18.5[13]
2002 $4.2[13] $19.9[13]
2003 $4.3[13] $21.7[13]
2004 $4.5[13] $22.7[13]
2005 $4.8[13] $24.6[13]
2006 $4.9[13] $25.9[13]
2007 $5.1[13] $27.7[13]
2008 $5.2[13] $29.7[13]
2009 $5.3*[13] $31.9*[13]

Budget transparency

North Dakota had 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.[14]

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.[14][15]

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


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.[16] 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.[16]
  • Lawmakers on the appropriation committees in the legislature have been meeting to discuss plans with the state's ARRA funds.

Independent transparency sites

The North Dakota Policy Council sponsors a website on school transparency.[17]

Public employee salary information

See also" North Dakota state government salary

Accounting principles

See also: North Dakota government accounting principles

The North Dakota Office of the State Auditor (OSA) is divided into three operational divisions.[18]

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

The OSA published its audit reports online. The State Auditor is a constitutionally elected state official. Robert R. Peterson had been State Auditor since his election in 2000.[19][20]

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.[21] North Dakota's CAFRs were prepared and published online by the North Dakota Office of Management and Budget and were prepared by the Fiscal Management Division.[22][23]

Credit Rating Fitch Moody's S&P
North Dakota[24] NR Aa2 AA+

Economic Stimulus Package

North Dakota was expected to receive approximately $650 million of the $787 billion dollar economic stimulus package.[25] According to White House officials the package is expected to create approximately 8,000 jobs.[26]

According to preliminary reports North Dakota was expected to receive:

  • $485,000 for senior nutrition programs[27]
  • $32 million for education funding[28]
  • $175 million for transportation infrastructure[28]
  • $76 million towards Medicaid[28]
  • $19 million for Clean Water[29]
  • $25 million towards weatherization[29]
  • $10 million for energy efficiency and conservation[29]

After receiving $700 million in funding, only 315 private sector jobs were created from the stimulus funding.[30]

See also

North Dakota government sector lobbying
North Dakota state budget and finances
North Dakota public pensions

External links

Additional reading


Footnotes

  1. ↑ State of North Dakota Legislative Appropriations 2009-11
  2. ↑ State Budget Solutions “States Hide Trillions in Debt” July 22, 2010
  3. ↑ 3.0 3.1 USA Spending, State Guesstimated* Government Spending
  4. ↑ "f North Dakota Office of Management and Budget, Fiscal Division, "Legislative Appropriations 2009-2011 Biennium," August 12, 2009
  5. ↑ "f North Dakota Office of Management and Budget, Fiscal Division, "Legislative Appropriations 2009-2011 Biennium," August 12, 2009
  6. ↑ Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals” Aug. 11, 2010
  7. ↑ H.R. 1586
  8. ↑ North Dakota Office of Management and Budget, "2009-11 Budget Highlights," July 2009
  9. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named instructs
  10. ↑ 10.0 10.1 The Tax Foundation "Monday Maps: State and Local Tax Burdens vs. State Tax Collections" May 10, 2010
  11. ↑ North Dakota Office of Management and Budget, "2009-11 Budget Highlights," July 2009
  12. ↑ North Dakota Legislative Branch, "Budget Process," December 5,2008
  13. ↑ 13.00 13.01 13.02 13.03 13.04 13.05 13.06 13.07 13.08 13.09 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 US Government Spending, "North Dakota State and Local spending," accessed March 29,2009
  14. ↑ 14.0 14.1 North Dakota Policy Council, "State to post expenditures online," May 10, 2009
  15. ↑ Culling letter to support transparency
  16. ↑ 16.0 16.1 ND Office of Management and Budget visited April 21, 2010
  17. ↑ www.sunshineonschools.org
  18. ↑ North Dakota Office of the State Auditor Web site, accessed November 4, 2009
  19. ↑ Project Vote Smart Web site, accessed November 4, 2009
  20. ↑ audit reports
  21. ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  22. ↑ North Dakota Office of Management and Budget Web site, accessed November 4, 2009
  23. ↑ CAFRs
  24. ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
  25. ↑ Associated Press, "North Dakota share of federal stimulus money now $650 million," March 17,2009
  26. ↑ American Recovery and Reinvestment Act, "Estimated job effect," accessed March 29,2009
  27. ↑ Minot Daily News, "Senior meals receive stimulus money," March 20,2009
  28. ↑ 28.0 28.1 28.2 Cite error: Invalid <ref> tag; no text was provided for refs named ExtraFunds
  29. ↑ 29.0 29.1 29.2 State of North Dakota, "Economic Stimulus," March 27,2009
  30. ↑ Watchdog, Very Few Jobs Created By Stimulus In North Dakota, Sept. 23, 2010
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