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North Dakota budget, Dalrymple
Looking up at the North Dakota State Capitol building in Bismarck. (Image: Timothy Vogel via Flickr)

North Dakota tax collections far below revised forecast

BISMARCK, N.D. (AP) — North Dakota continues to see bleaker-than-expected state tax revenue collections from declining oil activity in the state.

Office of Management and Budget Director Pam Sharp told a panel of lawmakers Tuesday that tax collections already are down $6.4 million since January. Gov. Jack Dalrymple on Feb. 1 ordered cuts in state government and a raid on a rainy day fund to make up for more than $1.1 billion in shortfalls. The recent drop is in addition to that.

Sharp says most of the decline is due to falling sales tax collections due to a drop in oil drilling and poor crude prices.

North Dakota Petroleum Council President Ron Ness told lawmakers that he doesn’t expect a turnaround for at least a year.

In related news, N.D. oil production drops by 30.6K barrels daily in January.

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