Watch CBS News

Cuts Ordered As N.D. Sees $1B Budget Shortfall Amid Oil Slump

BISMARCK, N.D. (AP) — North Dakota Gov. Jack Dalrymple has ordered deep cuts to state government and a massive raid on state savings to make up for a more than $1 billion budget shortfall due to a drop in oil drilling and depressed crude prices.

Dalrymple announced the cuts to state agency officials on Monday.

The Legislature's record $14.4 billion budget for the two years that began July 1 was built on economic assumptions last year that have proven far too rosy. Oil prices, a key contributor to the state's wealth, have taken a nosedive in the past year.

To balance the budget, Dalrymple will take more than $497 million from the state's rainy day fund, leaving it with about $75 million.

The governor also ordered agencies to cut their budgets by 4.05 percent.

(© Copyright 2016 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.