North Dakota first proposed the Legacy Fund in 2008 and legislators approved its creation in 2010. The legislature expected deposits might reach $600 million dollars by the summer of 2013. Instead, the fund is sitting on $1.3 billion and could very well surpass $3 billion by the time lawmakers determine the best use of the funds.
30% of annual oil extraction and production taxes are directed to the fund and spending is restricted through 2017. Even then, spending has to be approved by a two-thirds vote and no more than 15% of the fund can be spent in any two year budget cycle.
“It is growing very fast. It’s going to become much bigger.”
Add the $583 million rainy day fund and the $342 million property tax relief fund and it becomes very clear the North Dakota oil boom is setting the state up for a long and prosperous future.
Read the full article at thefiscaltimes.com