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Legislature Reduces Budget Projections Due To Lower Oil Prices

The State Legislature has revised its revenue forecast projections in response to the lower oil prices, which threatens the number of rigs and workers. According to a Star Tribune article, North Dakota’s original 2015-2017 revenue estimate of $8.3 billion has been reduced to $4.2 billion – a nearly 50% reduction.

The Star Tribune article further explains that the original revenue projections were calculated on the basis of oil selling for between $72-$82 a barrel. The revised projections are based on $45-$65 per barrel prices.

The Legacy Fund and “Strategic investment and improvements fund” were among the largest reductions in the revised budget.

Today, oil prices dipped below $44 a barrel – a price not seen since March 2009. That compares to $93 a barrel last year.

Read the revised forecast.

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