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North Dakota Oil Savings Account Revenues Exceeded Forecast

North Dakota’s oil tax trust fund is making a lot of money from the economic recovery and higher-than-expected equity investment, officials said Tuesday.

Revenues from the Legacy Fund for the two-year budget cycle that ended last month were approximately $ 827 million, up from the $ 736 million forecast by budget makers and the state legislature.

“The stock market has recovered from the initial decline in COVID and has recovered significantly,” said State Treasury Secretary Thomas Beadle.

Joe Morissette, director of the Office of Management and Budget, said almost half of the additional income ($ 65 million) would be used to repay constitutional funds that would benefit schools. Short change An error has occurred for about 10 years. Funding from the Common Schools Trust Fund will be distributed to public schools in North Dakota.

In 2010, voters approved a constitutional amendment requiring a legacy fund worth approximately $ 8.8 billion to secure 30% of state tax revenues on oil and gas production.

The latest deposit in the fund was $ 45.5 million in June.

Two-thirds of the votes of the North Dakota House and the Senate are required to use one of the previously untargeted fund’s principals. But lawmakers weren’t timid about spending interest from the fund, primarily to balance the swelling state budgets of the last decade.

The state’s current two-year budget, including federal funding, is $ 17 billion, about $ 2.1 billion more than the budget cycle that ended June 30.

The State Investment Commission, led by Lieutenant Brent Sanford, invests legacy fund funds in a wide range of assets, including equities, fixed income and real estate.

This year, Republican Governor Doug Burgum signed legislation It aims to create a broader investment policy for legacy funds.

The law sets a goal of investing 10% of the fund’s principal in equity investments in the state and 10% in fixed income investments in the state.

Legislative supporters said that only about 1% of the legacy fund’s principal was invested in North Dakota in the past.

North Dakota Oil Savings Account Revenues Exceeded Forecast

Source link North Dakota Oil Savings Account Revenues Exceeded Forecast

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