North Dakota CIO Corey Mock remarked on the state's steady growth over the past several years, powering the state's budget, including that of IT. But the 2027 budget year might present a different picture, in which leveling out spending or even reducing it might be on the table. As an oil-producing state, North Dakota’s fortunes are tied to the price of oil, putting Mock in a unique position.
"Right now we're taking a service delivery evaluation," he said. "We're looking at our own funding model as an IT agency to make sure that we're able to incentivize delivery of services, but then also provide stability in our funding."
Video Transcript:
I'd say it depends on the price of oil, so it depends by the day. I think I might be the only person in the country that's looking at the oil price and thinking, stay just a little bit high and we'll be good. North Dakota is ... we're a commodity state. A big chunk of our state revenue comes from oil production and extraction. So for a while, when we were looking at oil that was priced around $50 to $55 a barrel, it was looking like we were going to have a budget scenario that was, you know, it may have met expectations, but unlike prior years where we've had more money than anticipated, which has given us some flexibility to do more projects. It was beginning to look like this might be a year, this 2027 might be the first time in a while that the state is going to have to really come in and start focusing on, at the very least, on cost stability, if not in some areas, cost reductions. We're still taking a conservative approach to our budget. As a state that's grown considerably over the last 15 years, thanks to oil development, we're now at a place where we're going to have to start to level off and take a deep reflection in the programs that we're providing, how those services are being funded and what we can do to make sure that all of this is sustainable for generations.
