BISMARCK – Gov. Jack Dalrymple will present his two-year budget recommendation to the state Legislature Wednesday, setting the stage for what one lawmaker predicted will likely be “one of the most momentous sessions in legislative history.”
Dalrymple will deliver his budget address in the Capitol’s House chamber at 10 a.m. on the last day of the Legislature’s three-day organizational session.
The address will be streamed live at http://governor.nd.gov/2015-17-budget-address .
Lawmakers said Tuesday they expect falling oil prices to be a factor in the governor’s budget, but to what extent isn’t known.
The Office of Management Budget released a revenue forecast in August based on the assumption that oil prices would be $90 per barrel during the 2015-17 biennium. But OMB’s revenue advisory committee decided in late October that it was safer to assume $74 per barrel at the start of the biennium and $82 at the end.
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Rep. Jim Kasper, R-Fargo, said he suspects the governor has had to reduce some of his spending proposals because of dropping crude prices, which he said underscore the danger of relying too much on one source of revenue.
“Now, I think caution is the word for this next biennium,” he said.
As oil tax revenues have skyrocketed – OMB’s preliminary forecast in August predicted the state would collect nearly $9.8 billion in oil tax revenue during the next two years – state spending also has risen significantly to cover the costs of roads, infrastructure, school classrooms and other needs associated with the oil and gas boom and population growth.
The governor’s budget will include a revised revenue forecast, and the Legislature will refer to a third forecast released in February when making spending decisions.
Dalrymple recommended a nearly $12.9 billion budget for 2013-15, including federal and special funds. The Legislature ultimately approved a $13.7 billion budget, a 38.5 percent increase over the $9.9 billion budget approved for 2011-13.
For the next biennium, Dalrymple asked state agencies in May to develop hold-even budgets but also invited those dealing with rising demand for services to submit an optional budget allowing for additional staff or other increases.
Rep. Jeff Delzer, chairman of the House Appropriations Committee, said he expects the governor’s budget to be another record, just given the costs to continue in areas such as health insurance and education.
Senate Minority Leader Mac Schneider, D-Grand Forks, speaking during a joint session of the House and Senate on Tuesday, said, “We are on the verge of what is likely to be one of the most momentous sessions in legislative history.”
