North Dakota revenue forecast drops $105 million, requiring budget cuts

On March 13, North Dakota lawmakers received revised revenue projections showing decreased earnings compared to January’s forecast. While still predicting a $72 million increase for 2025-27, the new outlook is $105 million lower than previously expected. The forecast reduces projected sales tax revenue by $90 million and oil tax revenue by $591.6 million. Oil prices were adjusted down by $3 per barrel, and legislators learned that 48% of oil wells now qualify as tax-exempt “stripper wells.” Senate Appropriations Chair Brad Bekkedahl noted the Legislature is $300 million over projected funds, stating “we’ll have to cut.” Despite these challenges, Governor Armstrong maintains the state can still afford property tax relief and key priorities. Committees will vote on adopting an official forecast on March 17.