Status of the General Fund Presented to the Budget Section September - - PDF document

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Status of the General Fund

Presented to the

Budget Section

September 26, 2019

Joe Morrissetue Director

SLIDE 2

March 2019 March 2019 Revenues and Transfers

• Leg. Forecast

Actual Variance Percent

• Leg. Forecast

Actual Variance Percent Sales Tax 44,399,285 64,255,222 19,855,937 44.7% 1,772,276,206 1,786,479,717 14,203,511 0.8% Motor Vehicle Excise Tax 9,295,000 10,897,797 1,602,797 17.2% 239,980,388 239,039,038 (941,351)

• 0.4%

Individual Income Tax 16,354,000 20,532,322 4,178,322 25.5% 767,812,657 778,054,900 10,242,243 1.3% Corporate Income Tax 8,174,415 21,542,613 13,368,198 163.5% 179,908,244 240,106,623 60,198,379 33.5% Insurance Premium Tax 2,374,575 1,169,501 (1,205,074)

• 50.7%

110,325,897 115,544,049 5,218,152 4.7% Oil & Gas Production Tax* 212,147,128 212,147,128 Oil Extraction Tax* 187,852,872 187,852,872 Gaming Tax 71,370 211,959 140,589 197.0% 7,228,321 9,156,498 1,928,177 26.7% Lottery 7,300,000 8,600,000 1,300,000 17.8% 14,600,000 15,900,000 1,300,000 8.9% Cigarette & Tobacco Tax 2,264,000 2,259,837 (4,163)

• 0.2%

51,852,548 52,381,863 529,315 1.0% Wholesale Liquor Tax 930,308 789,246 (141,062)

• 15.2%

17,951,575 17,768,453 (183,122)

• 1.0%

Coal Conversion Tax 3,093,000 3,788,631 695,631 22.5% 43,219,227 44,572,709 1,353,481 3.1% Mineral Leasing Fees 1,252,000 3,651,583 2,399,583 191.7% 38,872,687 42,197,590 3,324,903 8.6% Departmental Collections 3,305,847 4,041,984 736,137 22.3% 84,883,438 81,466,893 (3,416,545)

• 4.0%

Interest Income 1,960,000 2,064,207 104,207 5.3% 9,471,168 11,319,365 1,848,196 19.5% State Mill & Elevator-Transfer 9,763,615 7,568,325 (2,195,290)

• 22.5%

19,872,762 17,677,472 (2,195,290)

• 11.0%

Bank of North Dakota - Transfer 140,000,000 140,000,000 Legacy Fund - Transfer 300,000,000 455,263,216 155,263,216 51.8% 300,000,000 455,263,216 155,263,216 51.8% Tax Relief Fund - Transfer 183,000,000 183,000,000 SIIF - Transfer 248,000,000 248,000,000 Gas Tax Administration 2,016,120 2,016,120 Miscellaneous 763,451 763,451 32,533,691 33,504,157 970,466 3.0% Total Revenues and Transfers 410,537,415 607,399,893 196,862,478 48.0% 4,663,804,930 4,913,448,662 249,643,733 5.4% * The General Fund cap for oil and gas taxes contains two tiers. The first tier of $200.0 million was reached in January 2018. Additional oil taxes were allocated to the Tax Relief Fund until that fund received $200.0 million, and then to the Budget Stabilization Fund until that fund reached its cap of $75.0 million. The second tier of $200.0 million was met in August 2018, so no additional allocations will be made to the General Fund during the 2017-19 biennium.

STATEMENT OF GENERAL FUND REVENUES AND FORECASTS 2017-19 Biennium

/1The March 2019 revised revenue forecast includes actuals through January 31, 2019, and revised estimates for the remainder of the bienium.

Fiscal Month Biennium To Date

Compared to the March 2019 Revised Forecast /1

June 2019

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SLIDE 3

Beginning balance: Beginning unobligated balance - July 1, 2017 $65,000,000 Balance obligated for authorized carryover of appropriations 99,271,093 Total beginning balance $164,271,093 Revenues: $4,913,448,662 Total available $5,077,719,755 Expenditures: Spending authority Legislative appropriations - one-time (14,638,226) Legislative appropriations - ongoing (4,295,624,415) Authorized carryover from previous biennium (99,271,093) 2019-21 authority used in 2017-19 pursuant to emergency clause (106,000) Appropriation adjustments, cancellations 9,498,529 Supplemental appropriations (115,560,181) Total spending authority (4,515,701,386) Unspent authority returned to General Fund 51,891,252 Total amount spent or carried over to 2019-21 (4,463,810,134) Estimated ending balance before transfers and adjustments $613,909,621 Transfers and adjustments Transfer to Budget Stabilization Fund (548,010,854) \1 Net effect of other transfers, adjustments, and cash certifications (898,767) Total transfers and adjustments ($548,909,621) Ending unobligated balance - June 30, 2019 $65,000,000

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2017-19 BIENNIUM JUNE 30, 2019 FINAL REVISED

NDCC Section 54-27.2-02 provides that any end of biennium balance in excess of $65.0 million must be transferred to the budget stabilization fund, up to a cap of 15.0 percent of general fund appropriations.

GENERAL FUND STATUS STATEMENT

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Agency Total Unexpended % Returned Notes

101 Governor's Office $388,850 2.05% 108 Secretary of State 31,309 0.39% 110 Office of Management & B d t 522,956 1.50% 112 Information Technology Dept 13,922 0.07% 117 State Auditor's Office 255,958 2.69% 120 State Treasurer 90,073 5.10% 125 Attorney General 583,608 1.26% 127 State Tax Commissioner 1,686,171 3.15% Savings from vacant positions, filling positions at less than budgeted 150 Legislative Assembly 603,411 3.90% 160 Legislative Council 2,484,590 15.07% Level of authorized carryover no longer needed 180 Courts 2,931,801 2.87% Salary savings from turnover 188 Counsel for Indigents 1,272,870 7.08% Lower than anticipated cost related to caseload 201 Public Instruction 12,353,107 0.86% Excess school aid formula funding 215 University System 1,015,867 0.92% 226 Dept of Trust Lands 75 0.01% 228 Lake Region State Univ 30 0.00% 230 University of ND 7,894 0.01% 239 Dickinson State Univ 2,098,400 6.66% Excess one-time funding for operations and debt repayment 242 Valley City State Univ 2,423 0.01% 250 State Library 10,432 0.19% 252 School for the Deaf 790 0.01% 253 School for the Blind 120 0.00% 270 Career & Technical Ed ti 410,359 1.39% 301 Health Dept 1,597,235 3.67% EMS Training and grants, unexpended contracts, additional federal funds received for grants and indirect costs reducing the general fund 313 ND Veterans' Home 1,839 0.03% 316 Indian Affairs Commission 35,178 3.16% 321 Veterans Affairs 11,336 0.98% 325 Human Services 14,082,102 1.04% Lower than anticipated costs and caseloads related to nursing homes, Foster Care, DD Grants and County Social Services 360 Protection and Advocacy 16 0.00% 380 Job Service 108,300 19.84% 405 Industrial Commission 1,418,145 5.06% Lower than anticipated salary, operating and litigation costs 406 Labor Commissioner 406,157 17.63% 408 Public Service Commission 456,635 6.89% 414 Securities Commissioner 161,080 7.37% 471 Bank of North Dakota 172,259 17.23% 504 Highway Patrol 1,509,433 3.55% Salary and operating costs from vacant positions filled later than 530 Dept of Corrections & Rehab 3,778,966 1.76% Lower than anticipated costs related to inmate population 540 Adjutant General 176,729 0.61% 601 Dept of Commerce 1,151,015 1.83% Lower than anticipated salary expenses due to reorganization and filling vacant positions later than anticipated. 602 Dept of Agriculture 7,658 0.08% 670 ND Racing Commission 1 0.00% 701 State Historical Society 5,406 0.03% 709 Council on the Arts 797 0.05% 750 Parks & Recreation 45,949 0.23% Total $51,891,252 1.15%

2017-2019 General Fund Turnback

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STATEMENT OF GENERAL FUND REVENUES AND FORECASTS 2019-21 Biennium August 2019

May 2019 May 2019 Revenues and Transfers

• Leg. Forecast

Actual Variance Percent

• Leg. Forecast

Actual Variance Percent Sales Tax 89,505,965 80,600,082 (8,905,883)

• 10.0%

182,533,519 197,676,652 15,143,133 8.3% Motor Vehicle Excise Tax 11,556,451 12,056,447 499,996 4.3% 22,458,790 23,128,034 669,244 3.0% Individual Income Tax 14,053,420 8,334,291 (5,719,129)

• 40.7%

71,930,429 79,963,928 8,033,499 11.2% Corporate Income Tax 372,531 139,416 (233,115)

• 62.6%

806,244 912,376 106,132 13.2% Insurance Premium Tax

• 278,999

278,999

• 289,895

289,895 Oil & Gas Production Tax 39,804,659 39,804,659

• 0.0%

39,804,659 39,804,659

• 0.0%

Oil Extraction Tax 24,668,918 24,668,918

• 0.0%

24,668,918 24,668,918

• 0.0%

Gaming Tax 471,732 1,682,681 1,210,949 256.7% 654,686 2,457,167 1,802,481 275.3% Lottery

• Cigarette & Tobacco Tax

2,230,807 2,492,124 261,317 11.7% 4,530,010 4,669,922 139,912 3.1% Wholesale Liquor Tax 762,827 819,494 56,667 7.4% 1,748,453 1,694,468 (53,985)

• 3.1%

Coal Conversion Tax 1,638,919 1,628,738 (10,181)

• 0.6%

1,638,919 1,628,738 (10,181)

• 0.6%

Mineral Leasing Fees 1,564,932 1,125,115 (439,817)

• 28.1%

3,027,084 6,400,082 3,372,998 111.4% Departmental Collections 2,306,380 1,943,078 (363,302)

• 15.8%

3,594,493 2,862,188 (732,305)

• 20.4%

Interest Income 204,200 877,017 672,817 329.5% 262,700 1,189,160 926,460 352.7% State Mill & Elevator-Transfer

• Bank of North Dakota - Transfer
• Legacy Fund - Transfer
• Tax Relief Fund - Transfer
• 8,600,000

8,600,000

• 0.0%

SIIF - Transfer

• 382,200,000

382,200,000

• 0.0%

Gas Tax Administration

• 248,878

248,878

• 0.0%

Miscellaneous

• 1,430

1,430

• 88

88 Total Revenues and Transfers 189,141,741 176,452,489 (12,689,252)

• 6.7%

748,707,782 778,395,153 29,687,371 4.0% Fiscal Month Biennium To Date

Compared to the Legislative Forecast

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Beginning balance: Beginning unobligated balance - July 1, 2019 $65,000,000 Balance obligated for authorized carryover of appropriations 130,404,813 Total beginning balance $195,404,813 Revenues: Revenues collected to date $778,395,153 Remaining forecasted revenues 4,078,632,519 Total revenues 4,857,027,672 Total available $5,052,432,485 Expenditures: Legislative appropriations - One time ($48,639,068) Legislative appropriations - Ongoing (4,794,924,098) 2019-21 authority used in 2017-19 106,000 Authorized carryover from previous biennium (130,404,813) Total authorized expenditures (4,973,861,979) Estimated ending balance - June 30, 2021 $78,570,506

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Fund Balance Budget Stabilization Fund $659,453,437 Legacy Fund $6,262,548,992 Foundation Aid Stabilization Fund $395,738,595 Tax Relief Fund $90,275,000 05/31/19 Strategic Investment and Improvement Fund ($259,022,231 committed) 1,108,880,544 $

AUGUST 31, 2019 FUND BALANCES GENERAL FUND STATUS STATEMENT 2019-21 BIENNIUM AS OF AUGUST 31, 2019

NDCC Section 54-27.2-02 provides that any end of biennium balance in excess of $65.0 million must be transferred to the budget stabilization fund, up to a cap of 15.0 percent of general fund appropriations.

SELECTED SPECIAL FUNDS

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N.D.C.C. 54-14-03.1 Fiscal Irregularities

June through August 2019 Payment Adjustments

June 2019 253 NDSB/Visions Services Linda Kraft $ 2,678 Cynthia Williams $ 5,941 Teachers working additional days for summer contract. 253 NDSB Vision Services Jennifer Woodward-Sorenson $ 8,498 Employee resigned end of May, worked 9 months but paid over 12 months. This was the balance of 12-month contract. July 2019 253 NDSB/Visions Services Kenneth Dockter $ 4,087 Lanna Slaby $ 2,721 Cynthia Williams $ 2,546 Teachers working additional days for summer contract. 253 NDSB Vision Services Linda Kraft $ 5,217 Employee retired in June, worked 9 months but paid over 12 months. This was the balance of 12-month contract.

Retroactive Pay

June 2019 125 Attorney General James Shaw $ 1,495 Reclassification. 127 Tax Department Erica Lien $ 1,696 Reclassification.

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180 Judicial System Vanessa Anne Weber $ 529 Due to retirements, authorized to work extra hours as needed. This is payment for compensatory time earned in May. 471 Bank of ND James Leier $ 741 Lyndsay Wagner $ 640 Promotions/workload adjustments effective 6-1-19. 601 Commerce Shantel Dewald $ $4,200 Workload increase $700/ month increase from 12-1-18 through 5-31-19. Will continue to receive these monthly increases until the CDBG Program Administrator position is filled. 701 Historical Society David Mayer $ 500 Workload adjustment retroactive to 4-1-19. July 2019 125 Attorney General Heidi Smith $ 800 Promotion. 325 DHS Angela Reidburn $ 802 Reclassification. August 2019 325 DHS Erik Elkins $ 735 Krist Fremming $ 735 LeAnn Thiel $ 897 Temporary workload increases. Nancy Maier $ 1,083 Laura Anderson $ 900 Pamela Schmit $ 950 Angela Navarro $ 5,753 Equity increases. Trista Schon $ 1,025 Reclassification.

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Severance Pay

June 2019 110 OMB Rebecca Sicble $ 26,106 Three-month severance package. July 2019 325 DHS Arlinda Johnson $ 10,500 Heidi Mercil $ 15,384 Greg Pfenning $ 9,748 Rosann Pudwill $ 16,098 Sheila Reich $ 20,202 Reductions in force. 408 PSC Anthony Schwartz $ 2,000 Reduction-in-force.

Severance Pay Voluntary Separation Incentive Program

June 2019 408 PSC (1 individual) $ 33,272 770 Water Commission (3 individuals) $ 55,048 801 DOT (12 individuals) $ 27,928

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Report on Federal Grants

Per NDCC 54-27-27

September 26, 2019 Grant Applications

Agency Description Time Period

• f Grant

Amount

• f Grant

Requested

Industrial Commission Plug and abandon an underground injection control well the Commission has confiscated. Up to 5 years $ 51,092 Game & Fish Conduct sampling in spring to assess if White Nose Syndrome (WNS) in bats is in ND. Also, continue a passive acoustic monitoring program, following guidelines of NABat Program, implemented in ND summer 2019. 10/1/2019 – 9/30/2020 $ 40,000 Dept of Transportation Replace 40 miles of rail owned by Red River Valley & Western Railroad from Lamoure to Oakes/Oakes to Gwinner. 11/12/2019 – 9/30/2026 $ 22,968,650

Grants Awarded

Agency Description Time Period of Grant Amount

• f Grant

Awarded

Dept of Agriculture Food Safety Modernization Act (FSMA) Produce Safety Rule education and outreach activities. 7/1/2019- 6/30/2021 $ 310,658 Dept of Transportation Competitive Highway Bridge Program (CHBP). Funding impacts 18 bridges in 9 counties, including 1 on state system. State match of 20% ($2,106,368) required. Total project cost is $11,045.455. Only 1 state bridge; majority of match coming from private/local entities. 7/1/2019- 6/30/2021 $ 6,511,000

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Total 11000 OMB - Facility Management Capital Building Entrance and Signage Project $337,470 12000 State Treasurer Tax Distribution Outstanding Checks (TDOC) Software Rewrite Process $20,000 12500 Attorney General Legacy Deposit System $43,179 25200 School for the Deaf Smith Building Kitchen Flooring $25,325 Replacement of 6 exterior entrances 41,607 Replacement of wheelchair lift in gymnasium 49,980 $116,912 30100 Health Department EBT - (Electronic Benefit Transfer) System $1,693,865 32500 Department of Human Services Life Skills & Transition Center - Generator Switch $230,000 Life Skills & Transition Center - KitchensProject 445,000 Life Skills & Transition Center - Living Area Improvements 4,340,000 State Hospital - Anti Ligature Project 530,000 $5,545,000 31300 Veterans Home Health Information Exchange Software $15,000 41200 Aeronautics Commission 48 - General Aviation Airport Grants $679,000 7 - Commercial Service Airport Grants 1,683,337 $2,362,337 53000 Corrections & Rehabilitation Electronic Medical Record (EMR) System $935,907 54000 Adjutant General Fargo Readiness Center $31,414,754 72000 Game & Fish Williston Office Building Roof $222,419 Pondliners Garrison Dam National Fish Hatchery 670,658 $893,077 75000 ND Parks & Recreation Capital Construction \ Extraordinary Repair Projects 24 - Projects Statewide $958,037 80100 Department of Transportation Roadway Projects 5 - Projects Statewide $4,234,924 Building Projects Williston Truck Barn 3,005,197 Fargo Drivers License Remodel 1,115,277 Central Office Roof Replacement 314,879 Cando Section Building 59,675 Roadway Maintenance Equipment 20 Tandem Axle Plow Truck - Boxes and Hydraulics 4,039,688 $12,769,640 Total Capital Construction Carryover Requests $57,105,178

2017 - 2019 Capital Construction Carryover - Detail

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South Entrance Remodeling Project

• Legislature appropriated $2,000,000 from the Capitol Building Fund

to enclose and remodel the south entrance to the state capitol building.

• Facility Management worked with Highway Patrol to ensure all

security improvements are included.

• J2 Studio, project architect, will provide four concepts for the

exterior/interior of the space.

• When final exterior/interior concepts are approved by the Capitol

Grounds Planning Commission, J2 Studio will proceed with design development and construction documents.

• Preliminary timeline:
• Bid the project in February
• Begin construction in April
• Complete project by end of 2020

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