North Dakota ended fiscal year 2021 with $10.74 billion in its general fund, up from $8.73 billion reported in 2020, according to the 2021 Annual Comprehensive Financial Report (ACFR).
The report analyzes all fiscal activity for state government from July 1, 2020, to June 30, 2021.
The state’s net position increased by $3.1 billion, according to the report. Net position includes financial information on state assets minus current liabilities and long-term debt.
“This increase is mainly due to an increase in federal grants to the state due to the COVID-19 pandemic,” state officials said.
Sales and use tax collections declined along with oil, gas and coal taxes mainly because of the recession brought on by the pandemic, according to the report.
Funding for the North Dakota Public Employee Retirement System is insufficient, according to the report. The “unfunded actuarial accrued liability is approximately $1.44 billion as of July 1, 2021,” according to the report.
“The actuary has determined that the current statutory rates are insufficient compared to the actuarially determined contribution rate needed to fund the actuarial accrued liability,” state officials said in the report.
“The ACFR provides citizens, legislators and bond rating agencies a comprehensive look at the fiscal activity for all of state government for the past fiscal year,” said Joe Morrissette, director of the Office of Management and Budget. “The 2021 ACFR shows North Dakota has weathered the pandemic in a strong financial position, with significant growth in Net Position and a record high General Fund balance.”
State Auditor Joshua Gallion said his team reviewed the report and found ”no areas of concern while reviewing the accuracy of the ACFR.”
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