Gov. Armstrong directs larger agencies to look at making budget cuts

BISMARCK, N.D. (KVRR) — Gov. Kelly Armstrong tells state agencies that there is a balance problem in the state budget.

He says twenty years of growth in the state has come with twenty years of growth in the state budget and it is unsustainable.

He has presented his executive budget guidelines for next biennium.

Agencies with general fund budgets of less than $10 million are asked to prepare a hold-even budget.

Those with budgets between $10 million and $20 million must identify reductions of 3%.

It’s 10% for agencies with budgets over $20 million.

Office of Management and Budget Director Joe Morrissette said, “The biennium began with an ongoing general fund gap of nearly $800 million.

While strong revenue growth is expected to reduce this gap, significant effort and collaboration across all agencies will be necessary to develop a budget that puts us on a sustainable path and ensures ongoing revenues and expenditures are balanced.”

Higher oil prices have generated additional state tax revenues, increasing the general fund’s projected ending balance for the current biennium by approximately $318 million.

Morrissette noted that most of that will be for one-time use and doesn’t close the gap.

Armstrong will present his budget to state legislators in December ahead of their January, 2027 regular session.