The North Dakota Oil Tax Trust is making a lot of money from the economic recovery and higher-than-expected equity investments, officials said on Tuesday.
The Legacy Fund’s revenue for the two-year budget cycle that ended last month was about $ 827 million, compared to $ 736 million projected by budget officials and the state legislature.
“The stock market has recovered from the initial drop in COVID and has made a significant recovery,” Treasury Secretary Thomas Beadle said.
Joe Morissette, director of the Office of Management and Budget, said nearly half of the additional revenue ($ 65 million) would be used to pay back constitutional funds that would benefit schools. Short change An error occurred for about 10 years. Common Schools Trust Fund funding will be distributed to public schools in North Dakota.
In 2010, voters approved a constitutional amendment requiring a legacy fund worth about $ 8.8 billion to secure 30 percent of state tax revenues on oil and gas production.
The last deposit in the fund was $ 45.5 million in June.
Two-thirds of the votes in the North Dakota House and Senate are required to use one of the principals of the previously untargeted fund. But lawmakers have not shied away from spending the interest on the fund, primarily to balance the state’s inflated budgets of the past decade.
The current two-year state budget, including federal funding, is $ 17 billion, about $ 2.1 billion more than the budget cycle that ended on June 30.
The State Investment Commission, headed by Lt. Brent Sanford, invests legacy funds of funds in a wide range of assets, including stocks, fixed income and real estate.
This year, Republican Governor Doug Burgum signed legislation It aims to create a broader investment policy for heritage funds.
The law sets a target of investing 10% of the fund’s capital in investments in state stocks and 10% in fixed income investments in the state.
Supporters of the legislation have said that only about 1% of the capital of the legacy fund has been invested in North Dakota in the past.
North Dakota Oil Savings Account Income Surpassed Forecast
Source link North Dakota Oil Savings Account Income Surpassed Forecast