(NewsDakota.com) – North Dakota voters will decide on a proposed amendment to the state constitution regarding the Legacy Fund in the upcoming general election on November 5. The measure, referred to as the North Dakota Legacy Fund Transfers Amendment, aims to reduce the amount of money that can be withdrawn from the fund, which accumulates revenue from oil and gas production taxes.
A “yes” vote would support reducing the portion of the Legacy Fund’s principal available for expenditure from 15% to 5% over two years. Additionally, the measure would direct earnings from the Legacy Fund to a new Legacy Earnings Fund, rather than the state’s general fund. This move is intended to limit the state’s access to the fund’s principal while safeguarding earnings for future use.
A “no” vote would oppose these changes, allowing the state to continue withdrawing up to 15% of the fund’s principal and sending accrued earnings directly to the general fund.
Understanding the Legacy Fund
The North Dakota Legacy Fund was established in 2010 through a voter-approved constitutional amendment. It receives 30% of the state’s oil and gas tax revenue and was created to preserve wealth from natural resources for future generations. The fund has grown significantly over the years, reaching a value of $9.15 billion as of May 2023, with $2.83 billion earned in investment income.
The amendment would also clarify that any earnings from the Legacy Fund accrued before July 1, 2017, would become part of the fund’s principal, which cannot be spent without a two-thirds vote from both chambers of the legislature.
Legislative Path
The amendment was introduced in early 2023 as House Concurrent Resolution 3033. It passed the North Dakota House of Representatives and Senate with strong bipartisan support. The proposed change is sponsored by a mix of Republican and Democratic legislators, including Representative Corey Mock (D-18), who emphasized the importance of safeguarding North Dakota’s mineral wealth for future generations.
The outcome of the vote will determine how North Dakota manages the Legacy Fund moving forward, with potentially significant long-term implications for state finances and public programs.