Via The Brooking Institute:
North Dakota’s total severance (extraction tax) revenue fell from more than $3.5 billion in 2014 to $2 billion in 2015. Gov. Jack Dalrymple has now ordered state agencies to slash their budgets by 4 percent to close a $1 billion budget shortfall. The state has drawn down its entire $331.7 million surplus, and also plans to tap nearly $500 million from its budget stabilization fund.-RW
Alaska faces a whopping $3.8 billion budget deficit, or two-thirds of its budget. As a result, Gov. Bill Walker is proposing to use earnings of the Alaska Permanent Fund to help pay for government. The rest of the deficit would be overcome by implementing an income tax, cutting government spending, and raising other taxes.
Louisiana has announced across-the-board program cuts to address an estimated $900 million gap in the current fiscal year. Next year’s shortfall is expected to be more than $2 billion.
Oklahoma is contending with a $1.3 billion budget shortfall, nearly 20 percent of last year’s spending. As a result, state agencies are faced with cuts totaling 7 percent in annual state allocations. Public schools, for instance, will have $110 million cut from their budget for the fiscal year ending June 30.