North Dakota Legacy Fund
The North Dakota Legacy Fund is a sovereign wealth fund of the U.S. state of North Dakota. Contributions to the fund are calculated from a thirty percent tax on oil extraction and production.[1] The fund was established by ballot initiative in 2010. The fund is modeled after the Norwegian Sovereign Wealth Fund.[2] As of January 31, 2023, the fund has a principal balance of approximately $8.919 billion.[3] The fund is projected to have assets worth approximately $90 billion by 2039, $150 billion by 2050, and $250 billion by 2060. The fund intends to diversify wealth obtained from oil extraction into other sectors.[2] Money in the fund could not be spent by the state legislature until 2017.
Background
North Dakota is a commodity-based economy. North Dakota experienced an uptick in oil extraction from 2008-2014.[4] The legacy fund was established to ensure that the financial windfall gained from the Bakken Oil Boom would benefit the state in the long-run, even if oil prices collapse.[5]
References
- ^ North Dakota State Constitution, Art. X, sec. 26.
- ^ a b https://www.betterenergy.org/wp-content/uploads/2018/03/North_Dakota_Legacy_Fund_Recommendations.pdf [bare URL PDF]
- ^ "Legacy Fund". Retirement Investment Office.
- ^ "North Dakota's Oil Boom is over. What Now?". The Atlantic. 27 June 2015.
- ^ https://www.betterenergy.org/wp-content/uploads/2018/03/North_Dakota_Legacy_Fund_Recommendations.pdf p. 14
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