North Dakota budget writers facing challenges with revenue volatility and spending gaps

(Bismarck, ND) -- Budget writers in the North Dakota Legislature are facing challenges as the state's main revenue source remains volatile and there is a persistent spending gap.

The interim Legacy Fund Earnings Committee hearing Tuesday that general fund revenues were 14-percent higher and oil taxes were 29-percent higher that was projected for the 2021 to 2023 budget cycle. The Legislature also faces a gap between ongoing general fund revenues and ongoing spending.

Lawmakers have filled the gap by tapping into funds arising from oil taxes. Legislators say 21-percent of the current budget's revenue comes from oil tax money.

North Dakota's constitution requires a balanced budget.