The governor will use the blueprints to draft his own spending recommendations for the Legislature when lawmakers meet in January.
The state’s current two-year budget including federal aid is $13.6 billion. It includes $4.3 billion in state general fund spending, or $1.7 billion less than the 2015 budget that had more than doubled since 2009 with the rise of oil activity in the state.
The general fund portion of the budget is spent on an assortment of programs, including education and human services. It is funded largely by state taxes on income, sales and energy.
Burgum took office amid a sharp downturn in tax revenues due to prolonged slumps in oil and agriculture prices. The state’s budget was balanced last year through layoffs, and raids on state savings.
Burgum said his budget instructions did not indicate a belief that North Dakota’s economic growth is slowing. He said North Dakota has more than 14,000 unfilled jobs and “oil activity is more robust than anticipated.” But while oil activity has rebounded to near record levels in recent months, he warned against counting on the increased revenue to balance budgets.
“As we know from recent experience, it is very risky to make spending decisions based on market forces beyond our control,” Burgum said.
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