N.D. budget outlook: $70 oil, huge budget surpluses

BISMARCK — North Dakota’s new budget outlook forecasts a $1 billion surplus at the end of June.

The preliminary revenue forecast was done as part of the state’s budget preparations for the next Legislature. The forecast will be updated in November, two months before the session begins.

The forecast estimates North Dakota will have a $1 billion cushion in the state treasury when the current budget period ends June 30. It predicts tax revenues will grow 10 percent in the next two years, and oil prices will average $70 a barrel.

In addition to the surplus in the current budget, North Dakota should accumulate nearly $700 million more in an oil tax surplus fund by June 2013.

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