N-D budget surplus soars over $500 million

Bismarck, N.D. (AP) North Dakota's budget surplus is soaring.

New revenue projections today show the surplus should be more than 500 (M) million dollars by the time North Dakota's budget year ends next June.

The state treasury is supposed to have an extra 271 (M) million dollars when the budget year ends on June 30th.

Plus, there's a rainy-day fund of about 100 (M) million dollars.

And there's an oil tax trust fund that's expected to grow to 155 (M) million dollars by the end of June.

When you add it up it's more than 520 (M) million dollars.

Governor Hoeven announced the new numbers today. They were compiled using data from an economic forecasting firm called Moody's Economy-Dot-Com.

Higher oil prices are helping to increase the surplus. But Hoeven says North Dakota's overall economy is doing well. Projected income and sales tax collections are up, and corporate tax collections are rising.

Hoeven says the money can be used to increase spending on the state's priorities like education and human services. He also says some of it can be used to help finance local property tax cuts.

A legislative committee has suggested devoting at least 74 (M) million dollars to school property tax cuts over two years. Hoeven says the next budget could raise that amount.

(Copyright 2006 by The Associated Press. All Rights Reserved.) APNP 08-15-06 1118CDT | save this article / add to your favorites list