Budget Section

NORTH DAKOTA LEGISLATIVE MANAGEMENT Minutes of the BUDGET SECTION Tuesday, December 13, 2011 Senate Chamber, State Capitol Bismarck, North Dakota Senator Tony Grindberg, Chairman, called the Unobligated general fund $996,832,711 meeting to order at 9:00 a.m. balance - July 1, 2011 Members present: Senators Tony Grindberg, Bill Add Bowman, Randel Christmann, Robert Erbele, Ray General fund collections $981,851,236 through October 2011 Holmberg, Ralph L. Kilzer, Karen K. Krebsbach, David Forecasted general fund 2,640,703,279 O'Connell, Larry Robinson, Mac Schneider, Ryan M. revenue for the remainder of Taylor, Terry M. Wanzek, Rich Wardner, John the 2011-13 biennium Warner; Representatives Larry Bellew, Michael D. Total estimated general fund 3,622,554,515 Brandenburg, Al Carlson, Stacey Dahl, Jeff Delzer, revenue for the 2011-13 Mark A. Dosch, David Drovdal, Jerry Kelsh, Keith biennium Kempenich, Matthew M. Klein, Gary Kreidt, Joe Balance obligated for authorized 106,945,443 Kroeber, Bob Martinson, Ralph Metcalf, David carryover from the 2009-11 Monson, Jon Nelson, Chet Pollert, Blair Thoreson, biennium Don Vigesaa, Alon Wieland, Clark Williams Estimated total available 4,726,332,669 Members absent: Representatives Eliot Less Glassheim, Kathy Hawken, Lee Kaldor, Bob Skarphol 2011-13 biennium general fund (3,532,895,032) ongoing appropriations Others present: Jim W. Smith, Legislative 2011-13 biennium general fund (533,958,760) Council, Bismarck one-time appropriations See Appendix A for additional persons present. 2011-13 biennium special (169,832,668) It was moved by Senator Robinson, seconded session appropriations by Senator Holmberg, and carried on a voice vote Balance obligated for (106,945,443) that the minutes of the September 15, 2011, authorized carryover from the meeting be approved as distributed. 2009-11 biennium 2011-13 emergency 519,254 ND appropriations utilized in 62 LEGISLATIVE ASSEMBLY STATE 2009-11 BUDGET ACTIONS SUPPLEMENT FOR Estimated deficiency requests 0 THE 2011-13 BIENNIUM Total appropriations and (4,343,112,649) At the request of Chairman Grindberg, the estimated deficiency requests legislative budget analyst and auditor presented the Estimated general fund $383,220,0201 nd 62 Legislative Assembly State Budget Actions balance - June 30, 2013 Supplement for the 2011-13 Biennium report. He said 1Pursuant to North Dakota Century Code Section 54-27.2-02, any the publication includes information regarding end-of-biennium balance in excess of $65 million must be transferred to the budget stabilization fund, up to a cap of legislative actions from the November 2011 special 9.5 percent of general fund appropriations. session. He said the executive summary tab provides an updated budget summary for the 2011-13 Ms. Sharp presented information on general fund biennium, including an appropriations summary listing revenue collections for October 2011 and the 2011-13 bills approved during the special session by agency biennium to date. She said general fund revenues and bill number. collected biennium to date are $177.9 million or 22.1 percent more than the April 2011 legislative STATUS OF THE 2011-13 forecast. She said sales tax collections have BIENNIUM GENERAL FUND exceeded estimates by $97.1 million, or 41.2 percent, Ms. Pam Sharp, Director, Office of Management and individual income tax collections have exceeded and Budget, presented the following information estimates by $30 million, or 34.3 percent. (Appendix B) on the status of the state general fund for the 2011-13 biennium: ECONOMIC INDICATORS Ms. Sharp presented statistics on the oil industry. She provided average monthly oil statistics from November 2010 to October 2011, including a history of price per barrel, production, and drilling activity. Budget Section 2 December 13, 2011 She said the current posted price of oil is $98.34 per State Board of Higher Education monthly project barrel, production in October 2011 was just over variance reports must include: 488,000 barrels per day, and the current rig count is Name or description of the project. 200 rigs. She said the rig count has increased by Expenditure authorized by the Legislative 42 rigs compared to the number operating in Assembly. November 2010. She said current production and Amount of the original contract. price is more than the April 2011 legislative forecast, Amount of any change orders and description. which based oil production increasing from Amount of any potential or anticipated change 390,000 barrels to 425,000 barrels per day during the orders. 2011-13 biennium and prices ranging from $72 to Sum of the original contract, change orders, $75 per barrel. and potential or anticipated change orders and Ms. Sharp said it is not possible at this time to the amount by which that sum varies from the quantify the estimated effect on 2011-13 revenues expenditure authorized by the Legislative from 2011 flooding impacts on agricultural production Assembly. and fall 2011 harvest complications. Total expenditures to date. Scheduled date of completion as noted in the IRREGULARITIES IN THE FISCAL original contract and the latest available PRACTICES OF THE STATE scheduled date of completion. Pursuant to Section 54-14-03.1, Ms. Sharp List of each public and nonpublic entity that has presented information on irregularities in the fiscal a contractually reflected financial obligation with practices of the state. She said for the period of respect to the project. August through October 2011, there were no state Ms. Dolan said the change order details were not agencies with fiscal irregularities. included in the report provided to the Budget Section but are available through OMB upon request. STATE AGENCY APPLICATIONS FOR FEDERAL GRANTS RECOMMENDATIONS FOR REVOLVING Ms. Sharp presented information on state agencies FUND PREPAYMENT OF that applied for federal grants estimated to be $25,000 PLANNING FEES REQUESTS or more pursuant to Section 54-27-27. She said this Ms. Sharp presented OMB recommendations section requires the Office of Management and (Appendix D) regarding requests from Bismarck State Budget (OMB) to present at each meeting of the College and Valley City State University to utilize Budget Section reports received from state agencies, funding from the revolving fund for prepayment of other than entities under the control of the State Board consulting and planning fees for capital improvements of Higher Education, that have applied for federal pursuant to Section 54-27-22. She said pursuant to grants estimated to be $25,000 or more. She said this this section, the Budget Section may approve the use reporting requirement became effective July 1, 2011. of funds from the preliminary planning revolving fund She said for the period of August 2011 through for studies, planning, architectural programming, October 2011, the following agency applied for a schematic designs, and cost estimates relating to federal grant estimated to be $25,000 or more: proposed new capital improvements and major Time Period Title of remodeling of existing facilities. She said that if funds Agency of Grant Amount Grant are approved, the agency receiving the funds must Attorney August 2011 $500,000 Child Sexual Predator repay the preliminary planning revolving fund as General's through July 2013 Program - United money becomes available through legislative office States Department of Justice appropriation or other sources for the commencement of the project. Ms. Sharp said the Valley City State University STATE BOARD OF HIGHER request has been withdrawn. She said the Bismarck EDUCATION - MONTHLY PROJECT State College request relates to evaluating VARIANCE REPORTS deterioration of the existing library and the Ms. Tammy Dolan, Management and Fiscal construction of a new facility for the visual and Analyst, Office of Management and Budget, presented performing arts and potentially a replacement library. monthly project variance reports (Appendix C) on She said OMB recommended $13,000 be available State Board of Higher Education projects pursuant to from the preliminary planning revolving fund to study Section 15-10-47. She said this section requires that the library and determine if it can be renovated rather whenever any new construction, renovation, or repair, than demolished, and that upon nearing completion of valued at more than $250,000 is underway on the the library study, a final site may be selected for the campus of an institution of higher education under the Center for Creativity and Communication and $95,000 control of the State Board of Higher Education, the be made available from the preliminary planning State Board of Higher Education must provide OMB revolving fund for preplanning of the center. with monthly project variance reports. She said the Budget Section 3 December 13, 2011 It was moved by Representative Drovdal, Adjusted seconded by Senator Holmberg, and carried on a Requested Prior Requested Disaster Amount Approval1 Amount Pursuant to roll call vote that the Budget Section approve the State match $1,091,013 $1,091,013 Section 1 Bismarck State College request to utilize $108,000 for disasters of 2011 from the revolving fund for prepayment of prior to 2009 SB 2016 planning fees for capital improvements relating to 2009 flood 4,820,828 4,820,828 Section 1 the Library and Center for Creativity and of SB 2016 January 565,527 565,527 Section 15 Communication pursuant to Section 54-27-22. 2010 winter of 2011 Senators Grindberg, Bowman, Erbele, Holmberg, storm SB 2371 Kilzer, Krebsbach, O’Connell,

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