A group of lawmakers from West Virginia met with North Dakota legislators in Bismarck – to learn more about North Dakota’s “Legacy Fund.”
The fund – as proposed by the Legislature and approved by the voters – sets aside 30 percent of oil and gas tax collections in a permanent fund – which can’t be touched until at least 2017.
West Virginia State Senate president and Lt. Governor Jeffrey Kessler (D-Glen Dale) says his state – due to the natural gas development in the Marcellus shale formation – is collecting a lot of tax money from the industry. Kessler says he’s looking at states like North Dakota – which set aside some of the tax money in a permanent fund. West Virginia has been known for its coal and other energy resources – and has never set aside money in a trust fund.
"Is there any reason why, as we have this second opportunity with an oil and gas explosion, that we should not set aside something that is in high demand, that we have an abundant supply of," said Kessler. "There's no reason we shouldn't just take a portion of the increased growth you're going to see in the severance tax dollars -- an exponential growth -- and set it aside in a fund similar to what you guys have done."
Sen. Dwight Cook (R-Mandan) chairs the North Dakota Senate Finance and Tax Committee. He told the West Virginians North Dakota failed the first time it tried to create a permanent fund. The first measure set aside everything collected after the first $71 million of oil tax collections.
"The first time we were a little greedy," said Cook. "The second time it was a success."
Cook said it's important to have a bi-partisan group working on a measure like this.
"You're not going to get it done if you make it a political fight," said Cook.
Kessler says the trip has been a success.
"It has been driven home to those who made the trip that it is not a pie-in-the-sky idea," said Kessler after the meeting. "In fact, it will work in real-life application to the benefit of our state, just as it has for yours."