BISMARCK - The state government's rosy revenue outlook got another boost in November, state budget officials said Wednesday.
Five months into the current two-year budget, collections from state taxes, fees and other sources are more than $60 million ahead of last spring's projections, or 17 percent, Budget Director Pam Sharp told the Legislature's Budget Section.
Higher prices for oil pumped in the state and strong sales-tax growth are two places where big increases are seen.
Put another way, if the state's economy stagnated now and revenues merely met projections for the next 19 months, the state would still finish the biennium June 2007 with a $77 million cushion.
There is no stagnation in sight, Sharp told the legislators.
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"I would anticipate we're going to continue to see growth in the economy," she said.
In addition, the state Budget Stabilization Fund has an additional $99.5 million set aside as a safety net.
Every month's revenues since the new budget took effect in July have been above - sometimes well above - expectations, OMB monthly reports show.
The Budget Section is a 45-member committee of legislative leaders and appropriations committee members who meet quarterly between regular sessions.
The runaway revenue does have some brakes built in, Sharp reminded lawmakers.
The largesse will likely be trimmed in early 2007 when some state agencies or programs run out of money, or bills come due that the 2005 session did not anticipate. Paying such expenses will require the 2007 Legislature to make deficiency appropriations.
For instance, the state's share of expenses for the 1997 Red River Valley flood and the vicious October snowstorm in western North Dakota have to be paid, Sharp said. Those two bills equal $1.5 million.
Sharp also predicted there will likely be a deficiency appropriation needed for the State Hospital's sex offender treatment facilities, which a bulging with more admissions and unexpected changes than expected, but the amount is unknown.
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Sen. Larry Robinson, D-Valley City, asked if they shouldn't also expect a deficiency in the state corrections system, which is regularly surpassing ever-larger all time records of inmates. Recent counts have been over 1,400.
"Certainly that is a possibility," Sharp said, but it's too early to tell how much that might be. "It's clearly something to be watched," she said.
Readers can reach Forum reporter Janell Cole at (701) 224-0830
