Post by Logan on Jun 28, 2016 23:53:50 GMT -6
North Dakota in ‘very precarious’ situation of trying to predict oil, ag prices for budgeting
North Dakota is in a “very precarious” position of not knowing where slumping oil and agricultural commodity prices will land as the possibility of a special legislative session looms if next month’s state revenue forecast looks bleak, the state’s chief budget official told lawmakers Monday.
If the forecast predicts a significant revenue shortfall, Gov. Jack Dalrymple will consider calling lawmakers into special session to address it through targeted cuts or revenue transfers, as opposed to an across-the-board allotment like the 4.05 percent cuts sustained by most state agencies in February, Office of Management and Budget Director Pam Sharp told the Legislature’s Budget Section.
The budget office is working with Moody’s Analytics on the revenue forecast, due out in mid-July.
It will be based partly on input received during a July 8 meeting of the state’s Advisory Council on Revenue Forecasting, which includes bankers and leaders from the oil and agriculture sectors who provide input on what assumptions should be used.
Rep. Keith Kempenich, R-Bowman, questioned how accurately the industry will be able to forecast oil prices out seven or eight months.
Read more: bismarcktribune.com/news/state-and-regional/north-dakota-in-very-precarious-situation-of-trying-to-predict/article_a7a5d30c-d558-55e1-b351-df075100ae4b.html
North Dakota is in a “very precarious” position of not knowing where slumping oil and agricultural commodity prices will land as the possibility of a special legislative session looms if next month’s state revenue forecast looks bleak, the state’s chief budget official told lawmakers Monday.
If the forecast predicts a significant revenue shortfall, Gov. Jack Dalrymple will consider calling lawmakers into special session to address it through targeted cuts or revenue transfers, as opposed to an across-the-board allotment like the 4.05 percent cuts sustained by most state agencies in February, Office of Management and Budget Director Pam Sharp told the Legislature’s Budget Section.
The budget office is working with Moody’s Analytics on the revenue forecast, due out in mid-July.
It will be based partly on input received during a July 8 meeting of the state’s Advisory Council on Revenue Forecasting, which includes bankers and leaders from the oil and agriculture sectors who provide input on what assumptions should be used.
Rep. Keith Kempenich, R-Bowman, questioned how accurately the industry will be able to forecast oil prices out seven or eight months.
Read more: bismarcktribune.com/news/state-and-regional/north-dakota-in-very-precarious-situation-of-trying-to-predict/article_a7a5d30c-d558-55e1-b351-df075100ae4b.html