BISMARCK -- North Dakota state coffers continue to take in revenue at a rate above expectations, but the state budget director cautioned legislators Tuesday not to extrapolate too far with current numbers.
Budget Director Pam Sharp updated lawmakers on the state's finances as part of the Legislature's Budget Section meeting at the Capitol.
Helped by a higher-than-projected balance in the state general fund when the last biennium ended June 30, the state is on track to end this biennium with $134 million instead of the $18.7 million lawmakers penciled in when they passed the final 2007-09 budget in April.
Sharp said an extra $77 million more revenue than expected came in after the Legislature adjourned and helped not only the 2005-07 bottom line, but the beginning balance for 2007-09.
And since the new biennium started, total revenues of every type through Sept. 30 are now 16.8 percent ahead - $38.2 million - of what was expected.
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Sales tax collections are running 13.6 percent - or $13.5 million - ahead of projections. Motor vehicle excise tax and individual income tax are both more than 8 percent over so far. The sales tax is the single biggest revenue source for the state.
And some $15.5 million of variance, as budgeters call the excess, is in oil taxes that are running ahead of expectations because oil prices per barrel have increased.
Sharp cautioned lawmakers to remember once the state takes in $71 million in oil taxes for its general fund, any additional dollars during this biennium spills over into the Permanent Oil Tax Trust Fund and is held in reserve.
On the other hand, mineral leasing fees are running 45 percent behind or $744,000 less than expected. Part of that is lag time between the time of mineral lease sales and the computation of how much the state can keep after cities and counties get their share, Sharp explained.
Rep. Frank Wald, R-Dickinson, questioned a variance in corporation income tax revenues.
"Corporate income tax in September '05 shows $6.8 million and in September '07, 130,000. Explain that to me please," he said.
Sharp said it reflects differences in how the Tax Department counted revenue it sent directly to its refund reserve in one biennium or the next.
"Clearly there are timing issues. You can't go by the bottom line (and simply extrapolate for the whole biennium). You have to keep timing issues in mind when you look at this," she said.
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She also cautioned lawmakers not to think of the $200 million Budget Stabilization Fund and Oil Tax Trust Fund's $143 million as "surplus" because they are not available for spending, other than for a new property tax rebate program that starts next year.
