BISMARCK, N.D. (EDND) – The Economic Development Association of North Dakota (EDND) pledged its support of North Dakota Insurance Commissioner Jon Godfread’s recent proposal to invest a portion of the Legacy Fund in investment projects within North Dakota.
North Dakota’s constitutional language does not specify a purpose for use of the Legacy Fund, leaving the fund’s earnings and principal to be spent at the discretion of the state legislature. Currently, North Dakota’s Legacy Fund investments are invested almost entirely out-of-state and internationally. As a result, many communities, businesses and startups in the state are forced to look for capital investors outside of North Dakota’s borders.
Godfread’s plan would bring needed liquidity to North Dakota, using both debt and equity mechanisms, while aligning Legacy Fund investments with the people of North Dakota and creating a new source of opportunity and potential for the state.
“Commissioner Godfread’s plan would inject a wealth of opportunity in North Dakota by reinvesting Legacy Fund dollars back into our economies,” says EDND President Shawn Wenko. “The Legacy Fund was approved by North Dakota’s voters with the intent of building opportunities in our state through the investment of the fund’s $7 billion in earnings. Commissioner Godfread’s plan would accomplish exactly this.”
A recent survey conducted by WPA Intelligence and the Jamestown Stutsman Development Corporation found 79 percent of voters want “a specific and greater portion” of the fund to be invested within North Dakota. Seventy two percent of voters support the Legacy Fund “taking on additional risk” if it means “investing in North Dakota companies, opportunities and North Dakota economic development.”
To ensure a fair and proper vetting process of proposed North Dakota investments, Godfread’s plan establishes a North Dakota Investment Advisory Committee (IAC) that will review and recommend viable investment opportunities within the state. This committee will serve as a subcommittee of the State Investment Board (SIB) and will include the three statewide elected officials serving on the SIB, alongside the president of the Bank of North Dakota. This subcommittee would utilize existing structures with the state of North Dakota and rely on expertise from both the private and public sectors to review proposals and ensure a responsible and worth return on investment for the state.
“By investing Legacy Fund dollars into the state, EDND is confident North Dakota will have an incredible opportunity to plant the seeds of economic prosperity with the potential to develop our workforce and create opportunities for future generations,” says EDND Executive Director Jennifer Greuel.
EDND’s mission is to champion the growth and diversification of North Dakota’s economy through professional development, networking and advocacy. EDND’s membership includes professional economic development organizations and other businesses or organizations with a strong interest in economic development in North Dakota. For more information, visit ednd.org.