North Dakota governor orders cuts amid $1B budget shortfall

Philly.com /AP ^ | 02 February 2016 | James MacPherson

[Lorianne]

BISMARCK, N.D. - Gov. Jack Dalrymple on Monday ordered deep cuts to government agencies and a massive raid on state savings to make up for a more than $1 billion budget shortfall due to depressed crude prices and a drop in oil drilling.

North Dakota had more than $2 billion in various reserve accounts just one year ago, but oil prices - a key contributor to the state's wealth - have taken a nosedive in the last year. The legislature's record-high $14.4 billion budget for the two years that began July 1 was built on oil prices and economic assumptions that have fallen "much greater than anyone would have predicted," the governor said

[crz]

This is what happens from Boom and Bust economies. Natural cycle.
ND really had a problem with the area effected. Got caught with lack of nearly everything-roads, housing infrastructure, etc. Then, the crime rate went right through the roof.

[Cowboy Bob]

Why don’t they just raise taxes? That’s always the solution to all problems. /sarc

[maddog55]

Although there are cycles, when politicians have extra money laying around they find ways to spend it and that spending never seems to stop, they just keep.

North Dakota “had” more than $2 billion in various reserve accounts just one year ago... so they spent $3b in year.

[crz]

True that.
They simply can not help themselves until they face reality.

[Maine Mariner]

A good part of the surplus also went to reduce property taxes. Perhaps a surplus should be used to pay down the unfunded liabilities of public employee pension funds or
one time capital improvements such as upgrading school and college buildings. Such expenditures don’t involve the hiring of permanent staff whose wages, salaries, and benefits remain after the surplus is reduced or goes away.

North Dakota boomed not only because of high oil prices, but also because of high grain prices.