North Dakota has been putting 30 percent of its oil tax collections into a permanent “Legacy Fund.”
It was set up by voters in 2010, and it now has more than $2.2 billion. The Legislature can start tapping into the interest generated by the fund in 2017. And a group that’s been studying the fund has some recommendations on what to do with the money.
"This preferred scenario, which we're calling 'Reinvest, Replace and Spend,' achieves a balance in the Legacy Fund of $230 billion by 2060," said Brad Crabtree of the Great Plains Institute. "It will do this while providing North Dakotans with important benefits in the near to median turn."
Crabtree says the proposal, drafted by a bi-partisan, 24 member committee, would re-invest 75 percent of the fund’s earnings, and use the other 25 percent for some initiatives.
"For the first biennium, the group recommends the development of a comprehensive strategy and action plan for building a world-class pre-K through 20 education system, during the 2017-2019 biennium," said Crabtree.
Crabtree says other priorities include an endowed higher education scholarship program; a “genius initiative” to foster innovation; and investing in bold new infrastructure projects. The group also wants to set up a foundation that would help make spending recommendations to the Governor and Legislature. Crabtree says this is a 25-year strategy.