BISMARCKNew state revenue estimates anticipate an improvement in North Dakota's individual and corporate tax collections, which could give the Legislature $8.3 million more to spend in the state's next two-year budget.

The forecast, given to the House and Senate appropriations committees Friday, contain the final numbers that budget writers will use to finish their work on the state's 2003-05 spending plan.

However, the estimates assume the Legislature will approve a substantial tobacco tax increase that was included in Gov. John Hoeven's budget plan.

The North Dakota Senate has already rejected higher tobacco taxes, including Hoeven's proposal to raise the cigarette tax from 44 cents to 79 cents a pack. The cigarette tax increase, along with higher taxes on other types of tobacco, was expected to raise almost $30 million over two years.

The numbers project less in sales and motor vehicle excise tax collections than were forecast last November, when Hoeven presented his spending recommendations to the 2003 Legislature.

"Consumers are just not willing to go out and spend very much money, because of the impending war, the financial market is bad - it's just a significant consumer confidence issue," interim state budget director Pam Sharp said.

However, forecasts of individual and corporate income tax collections for the next two years have risen when compared to the November numbers than Hoeven used to finish his budget proposal.

Sharp said earlier estimates of income tax declines may have been too pessimistic.

Higher oil prices will give a $1.22 million bump to state revenue, but prices above $30 a barrel are not assumed to last past June, Sharp said.

"The current price of oil is quite high, as a result of a war premium," she said. "This forecast assumes that that price of oil will continue through June, and then we'll kind of smooth it down a little bit."

There will be strong demands on any additional money in North Dakota's budget.

At present, the spending plan does not include pay raises for state workers, and human services advocates want more spending on care for the elderly.

Representatives of North Dakota's local schools and the state university system also want their budgets increased from present levels.