State Treasurer Kelly Schmidt has always believed “The people’s treasury is the people’s business,” with that in mind we have identified and defined various funds held by the state, the revenue source of those funds and their use.
If the information you seek is not available please give us a call or email us at email@example.com.
Fund balances are updated quarterly as funds are reconciled and information becomes available. Some funds may be capped and may not reflect a change.
Abandoned Mine Reclamation Fund
The Abandoned Mine Reclamation Fund was established in 1979 to be used for the reclamation and restoration of land and water resources adversely affected by mining. This fund is administered by the Public Service Commission. Revenues include: federal funds, donations, use and lease revenue or sale of lands acquired and reclaimed lands purchased with moneys from the fund. For information about the surface mine reclamation program and the balance of this fund, visit the website of the
Public Service Commission.
Abandoned Oil/Gas Well Plugging and Site Reclamation Fund
The Abandoned Oil and Gas Well Plugging and Site Reclamation Fund (Abandoned Well fund) was established by the legislature in 1983. Deposits to this fund come from several sources including permit or service fees, forfeiture of drilling and reclamation bonds, federal funding, donations, oil and gas impact funds, sale of confiscated equipment and oil, and civil penalties.
In 2013 the legislature also amended the oil and gas Gross Production Tax distribution formula to allocate up to $5 million per fiscal year to the fund. After reaching its $5 million cap in fiscal year 2014, the Abandoned Well Fund has received $2,004,390 of deposits for fiscal year 2015 through September 2014.
Expenditures from the fund may be made to plug abandoned wells; reclaim abandoned drilling and production sites, saltwater disposal pits, drilling fluid pits and access roads; pay mineral owners royalties for confiscated oil; and reclaim oil and gas pipelines and associated facilities.
This fund is invested with other General Fund Accounts with interest earned paid to the fund. As of October 1, 2014, the balance of the Abandoned Well Fund was just over $9.6 million.
Budget Stabilization Fund
Established by the legislature in 1987, the Budget Stabilization Fund contains funds that may be used to offset a revenue shortfall as provided in Chapter 54-27.2.
The fund was originally capped at 15% of the General Fund appropriations approved by the most recent legislature. Over the years it has fluctuated from a low 5% in the 1991 legislative session, to a rebounding 10% as of July 1, 2009. The current cap is 9.5%.
The State Treasurer is required to transfer any funds in the General Fund exceeding $65,000,000 at the end of each biennium – or so much as is necessary – to the Budget Stabilization Fund to achieve the fund’s maximum balance. If there is not enough in the General Fund to meet the cap, then the Budget Stabilization Fund will retain its earnings until the cap is met. Once the cap is met the earnings are deposited in the General Fund.
The Governor may order a transfer from the Budget Stabilization fund to the General Fund if the Director of the Office of Management and Budget projects General Fund revenues for the biennium will be at least 2.5 percent less than estimated by the most recently adjourned Legislative Assembly. The amount transferred is limited to the difference between an amount 2.5 percent less than the original legislative General Fund revenue forecast and the revised forecast prepared by the Office of Management and Budget.
The State Investment Board (SIB) is responsible for the investment of the Budget Stabilization Fund. The Fund cap for the 2013-15 biennium is $583,545,799. To meet this cap amount the State Treasurer transferred $181,060,585 from the General Fund at the beginning of the 2013-15 biennium. For additional information on this and other funds managed by the SIB visit their website at the Retirement and Investment Office.
* Capitol Building Trust Fund
The Capitol Building Trust Fund was created under Article IX of the North Dakota Constitution for the construction and maintenance of “public buildings at the capital.” This trust fund is not permanent in that the balance of the trust is subject to legislative appropriation each biennium.
The balance of the Capitol Building Trust Fund as of August 31, 2014 was $5,017,000.
Centers of Excellence & Research Excellence Funds
Originally established in 2005 the Centers of Excellence & Research Excellence are hubs of research and development on the campuses of North Dakota's colleges and universities, partnering with private companies to generate new business opportunities. The Centers explore research in the fields of energy, agriculture, life sciences, aerospace, manufacturing and electronics.
As of June 30, 2012, The Centers program has had $635 million in estimated economic impact to North Dakota's Economy. This includes a direct impact of $216 million generated by the Centers, grant recipients and their partners.
As of October 1, 2014 the balance of the Centers of Excellence Fund was $9.28 million, and the balance of the Centers of Research Excellence Fund was nearly $4.1 million. For additional information about the Centers of Excellence and Research Excellence including a list of the approved Centers, annual reports and other publications visit the website for the North Dakota Department of Commerce.
Children’s Trust Fund
The Children’s Trust Fund was established in 1985 for the purpose of funding efforts to prevent child abuse and neglect. The purpose of the fund has remained the same since its inception. Deposits to the fund are generated by the additional fee (in excess of $2.00) charged by the State Registrar for the issuance of a birth record. The balance of the Children’s Trust Fund is invested by the State Treasurer in interest bearing accounts designated by the Children and Family Services Division of the Department of Human Services. All interest earned from these accounts is returned to the fund. Expenditures from the fund may only be made to administer and maintain the fund, aid in the prevention of child abuse and neglect, and develop child abuse prevention programs. As of October 1, 2014 the total balance of the cash and investments in the Children’s Trust Fund was $940,111.05. For information about the programs funded by the Children’s Trust Fund visit the web page for the Children and Family Services Division.
* Coal Development Trust Fund
The Coal Development Trust Fund is a permanent trust established in North Dakota Century Code (NDCC) § 57-62-02 pursuant to Section 21 of Article X of the North Dakota Constitution. The Fund receives 30 percent of the Coal Severance Tax. This fund is held in trust and administered by the Board of University and School Lands for loans to coal-impacted counties, cities and school districts as provided by NDCC §57-62-03, and for loans to school districts pursuant to NDCC 15.1-36. Any balance not loaned is invested according to the policies of the Board of University and School Lands. The income earned by this trust is subject to legislative appropriation each biennium.
The balance of the Coal Development Trust Fund as of August 31, 2014 totaled $66,606,000. For additional information relating to this fund visit the website of the
Department of Trust Lands.
* Common Schools Trust Fund
On February 22, 1889, Congress passed “An act to provide for the division of Dakota Territory into two states, and to enable the people of North Dakota, South Dakota, Montana and Washington to create their own constitutions and state governments.” This Act is commonly known as the Enabling Act. Section 10 of this act granted sections 16 and 36 of every township of the new states to be used “for the support of the common schools.” In cases where portions of section 16 and 36 had been sold prior to statehood, indemnity or “in-lieu” selections were allowed. In North Dakota, this grant totaled more than 2.5 million acres.
Under sections 12, 14, 16, and 17 of the Enabling Act (and other acts referred to therein), Congress provided further land grants to the state of North Dakota for the support of colleges, universities, the state capitol and other public institutions. These additional grants totaled approximately 668,000 acres, bringing the grant total of Enabling Act grants to nearly 3.2 million acres.
Article X of the North Dakota Constitution entrusted the management of these lands to the “Board of University and School Lands” (the Land Board). Members of this board, as provided by the state constitution are the Governor, Secretary of State, Attorney General, Superintendent of Public Instruction, and State Treasurer. The Commissioner of University and School Lands is appointed to act on behalf of the Board.
Several revenue sources contribute to the principal balance of this fund. It earns cash rents from leases of individuals using the lands for production agriculture, sales of the land, leasing of mineral rights, royalties and bonus payments from the production of minerals, 45% of the payments received in the Tobacco Settlement Trust Fund under subsection IX(c)(1) of the Master Settlement Agreement, and 10% of the Oil Extraction Taxes collected by the state.
Permanent trust distributions are based on the average value of the trust's financial assets, thus allocations to beneficiaries have increased. Collectively, the trusts disbursed $98.5 million during 2011-2013, nearly 20 percent more than the previous biennium. Because of the growth of the balances, the amounts approved for distribution by the 2013 Legislature will grow 41 percent to $138.7 million during the 2013-2015 biennium.
As of August 31, 2014 the principal balance of the Common Schools Trust Fund was $3,182,655,000. For quarterly financial reports, investment performance reports and annual financial statements for the Common Schools Trust Fund visit the website of the
Department of Trust Lands.
Community Development Loan Fund
The Community Development Loan Fund is utilized by the Community Services Division of the Department of Commerce to make grants and loans to eligible local units of government to aid in the rehabilitation of blighted areas, installing public facilities, low income housing, or economic development. The balance in this fund on October 1, 2014 was nearly $9.2 million. For information about the programs and services to which this fund contributes visit the Division of Community Services website.
Corporate/Individual Refund Reserves Fund
Maintained by the Tax Department, these funds provide needed resources to issue refunds of corporate and individual income taxes. As of October 1, 2014 the Corporate Refund Reserve Fund had a balance of nearly $56 million. The balance of the Individual Refund Reserve Fund on the same date was nearly $20 million.
Credit Sale Contract Indemnity Fund
The Credit-Sale Contract Indemnity Fund (CSCI) was established in 2003 to provide assurance of at least partial payment to a grain seller in the event of the insolvency of a licensed grain buyer. Under this statute a 0.2% assessment is placed on the value of all grain sold in the state under a credit-sale contract. Once the CSCI reaches a balance of $6 million the assessment must be suspended until the balance of the fund is reduced to under $3 million.
The balance of the cash and investments in the CSCI as of October 1, 2014 was just over $5.2 million. For additional information about the CSCI visit the website for the Public Service Commission.
Energy Conservation Fund
The Energy Conservation Grant Fund was established by the 2013 Legislative Assembly to provide grants to political subdivisions of the state for energy conservation projects in non-federal public buildings. It is funded by 0.5% of the allocation of Oil Extraction Taxes to the Resources Trust Fund with a cap of $1,200,000 per biennium. The $1.2 million cap was reached in May 2014.
The grant program for this fund is administered by the
Division of Community Services in the Department of Commerce.
Environment and Rangeland Protection Fund
The Environment and Rangeland Protection Fund (ERP) was established in 1991 for the purpose of funding rangeland improvement projects. In 2001 it was expanded to address disparate product standards for pesticides. The ERP may be used to fund projects such as noxious weed control; ground water testing, analysis, protection, and improvement; analysis of food products for residues of pesticides; and analysis and disposal of unusable pesticides and pesticide containers.
The ERP was established under the purview of the Commissioner of Agriculture and is funded by pesticide registration fees. As of October 1, 2014 the balance of the ERP was nearly $4.9 million.
Financial Institutions Tax Distribution*** See “Other Funds”
* Foundation Aid Stabilization Fund
The Foundation Aid Stabilization Fund was created by a constitutional amendment adopted by North Dakota’s voters in 1994. Article X, § 24 of the North Dakota Constitution requires the State Treasurer to deposit 10% of the Oil Extraction Taxes collected each month into the Foundation Aid Stabilization Fund. The interest income earned is deposited to the State’s General Fund. The principal may only be expended upon order of the Governor and only for the purpose of offsetting foundation aid reductions made by executive action pursuant to law due to a revenue shortage.
The balance of the Foundation Aid Stabilization Fund on October 1, 2014 was $518,957,113.51.
In public sector accounting, the General Fund is the primary cash account for the State. It is similar to a firm's general ledger account, and records all assets and liabilities of the entity that are not assigned to a special purpose fund. It provides the resources necessary to sustain the day-to-day activities and thus pays for all administrative and operating expenses. When governments or administrators talk about 'balancing the budget' they typically mean balancing the budget for their general fund. The Office of State Treasurer is responsible for the cash flow and reconciliation of the General Fund.
North Dakota is unique in that we have a state owned bank, the Bank of North Dakota. General Fund dollars are invested in the Bank of North Dakota, as required by law.
North Dakota Century Code §6-09-07 requires all state funds and funds of all state penal, educational, and industrial institutions to be deposited in the Bank of North Dakota or be deposited in accordance with constitutional and statutory provisions. All income earned by the Bank on state moneys that are deposited or invested with the Bank are to be a credit of the state. They must be credited to and become part of the revenues and income of the Bank.
The balance of the General Fund varies from day to day. During the 2014 fiscal year (July 1, 2013 – June 30, 2014) the average daily balance of cash and investments in the General Fund totaled $3,234,148,226. This is compared to $3,011,806,492 for the 2013 fiscal year.
Highway Tax Distribution Fund*** See “Other Funds”
Indian Cultural Education Trust
The Indian Cultural Education Trust was created in 2003 for the purpose of generating income to benefit Indian culture NDCC 15-68. The trust is managed for the benefit of the Mandan, Hidatsa & Arikara Nation Cultural Education Foundation. Available distributions from this trust are determined in the same manner as for the Common Schools Trust Fund.
This Fund is invested by the Department of Trust Lands. The balance as of August 31, 2014 was $872,002.
Insurance Trust Fund
The North Dakota Insurance Trust Fund is managed by the State Investment Board. The 15 funds that comprise the Insurance Trust Fund are the Workforce Safety and Insurance, Legacy Fund, State Fire and Tornado Fund, State Bonding Fund, Petroleum Tank Release Compensation Fund, Insurance Regulatory Trust Fund, State Risk Management Fund, State Risk Management Workers Comp Fund, Cultural Endowment Fund, Budget Stabilization Fund, North Dakota Association of Counties Fund, Bismarck Deferred Sick Leave Account, City of Fargo FargoDome Permanent Fund, State Board of Medical Examiners Fund, and the PERS Group Insurance Account.
As of September 30, 2014, the market values of the individual funds are:
|Workforce Safety and Insurance (WSI)||$1,686,541,307 |
|Legacy Fund||$2,516,568,041 |
|State Fire and Tornado Fund||$25,266,953 |
|State Bonding Fund||$3,272,018 |
|Petroleum Tank Release Compensation Fund||$7,098,987 |
|Insurance Regulatory Trust Fund||$636,259|
|State Risk Management Fund||$6,575,307|
|State Risk Management Workers Comp Fund||$5,940,827 |
|Cultural Endowment Fund||$360,795 |
|Budget Stabilization Fund||$587,073,431 |
|North Dakota Association of Counties Fund||$3,416,313 |
|Bismarck Deferred Sick Leave Account||$842,530 |
|City of Fargo FargoDome Permanent Fund||$39,605,770|
|State Board of Medical Examiners Fund||$1,878,733 |
|PERS Group Insurance Account||$45,003,806 |
|As of September 30, 2014, the market value of the Insurance Trust Fund is $4,930,081,077.|
* Legacy Fund
In 2009, the Legislative Assembly passed House Concurrent Resolution No. 3054, which placed the question of creating the Legacy Fund on the 2010 general election ballot. North Dakota voters approved the measure which created a perpetual source of state revenue from the finite natural resources of oil and natural gas. This created Article X, Section 26, of the Constitution of North Dakota. That section provides:
1. Thirty percent of total revenue derived from taxes on oil and gas production or extraction must be transferred by the State Treasurer to a special fund in the state treasury known as the Legacy Fund. The Legislative Assembly may transfer funds from any source into the Legacy Fund and such transfers become part of the principal of the Legacy Fund.
Taking advantage of this authority, the legislature enacted language which provides additional deposits to the Legacy Fund from the Strategic Investment and Improvements Fund (SIIF) once a $300 million cap is met. This provision resulted in additional deposits to the Legacy Fund totaling $148.7 million in the 2011-13 biennium.
2. The principal and earnings of the Legacy Fund may not be expended until after June 30, 2017, and an expenditure of principal after that date requires a vote of at least two-thirds of the members elected to each house of the Legislative Assembly. Not more than fifteen percent of the principal of the Legacy Fund may be expended during a biennium.
**Subsection 2 prohibits the expenditure of the principal and earnings of the Legacy Fund until after June 30, 2017. Appropriating money and expending money can be distinguished as separate acts. Appropriating money means designating and authorizing expenditure. Expenditure of money means disbursement of money. Article X, Section 12, of the Constitution of North Dakota, provides that public money of the state may be "disbursed only pursuant to appropriation first made by the legislature". Based upon the meaning of the terms "appropriating" and "expending," it appears during the 2017 legislative session the Legislative Assembly may appropriate funds from the Legacy Fund before June 30, 2017, but the funds may not be disbursed or expended until after that date.
3. Statutory programs, in existence as a result of legislation enacted through 2009, providing for impact grants, direct revenue allocations to political subdivisions, and deposits in the Oil and Gas Research Fund must remain in effect but the Legislative Assembly may adjust statutory allocations for those purposes.
The State Investment Board shall invest the principal of the North Dakota Legacy Fund. The State Treasurer shall transfer earnings of the North Dakota Legacy Fund accruing after June 30, 2017, to the State’s General Fund at the end of each biennium.
** Earnings from the Legacy Fund are required to be transferred to the General Fund at the end of each biennium, but the constitutional provision creating the Legacy Fund does not prohibit the Legislative Assembly from appropriating money directly from the Legacy Fund before any transfer is made to the General Fund. The only limitations on appropriating money from the Legacy Fund are the provisions in subsection 2 which prohibit the expenditure of the principal and earnings until after June 30, 2017, require at least a two-thirds vote of the members elected to each house of the Legislative Assembly.
The first distribution to the Legacy Fund was made in September of 2011. During the first 24 months of its existence more than $1.3 billion was deposited in the Legacy Fund. As of September 22, 2014, total deposits equal $2,438,495,282.85.
** Prepared by Legislative Council to the Government Finance Committee November 2013.
The principal of the Legacy Fund is invested by the Retirement and Investment Office (RIO) at the direction of the State Investment Board (SIB). Information relating to the SIB can be found by visiting the website for Retirement and Investment Office (RIO).
Lignite Research Fund
The Lignite Research, Development and Marketing Program is funded by approximately 10 cents per ton from the North Dakota coal severance tax. With annual production at approximately 30 million tons per year, about $3 million is available each year for the Research, Development and Marketing Program.
Grants since the program’s inception in 1987 have been used to help diversify the Great Plains Synfuels Plant, improve methods for more efficient and cost-effective reclamation, find cleaner ways to burn lignite in existing boilers, identify new market opportunities, and meet new challenges from proposed environmental regulations. Projects involve either lignite marketing feasibility studies, small research projects or demonstration projects.
The balance of the Lignite Research Fund on October 1, 2014 was nearly $17.5 million. More information is available on the
Lignite Research Council page of the North Dakota Industrial Commission website.
Oil and Gas Impact Grant Fund (Energy Development Impact Fund)
The Oil and Gas Impact Grant Fund was established in 1998 to provide financial assistance to the political subdivisions in areas of the state heavily impacted by the development of the oil and gas industry. When first created the Impact Grant Fund received up to $5 million per biennium from the allocation of the Gross Production Tax. The cap on this fund has been increased over the years. The Impact Grant Fund will receive $240 million during the 2013-15 biennium. As of September 22, 2014 deposits to the fund were just over $226 million.
The grant program for this fund is administered by the Energy Infrastructure and Impact Office. For additional information relating to the grant process visit the website for the
North Dakota Department of Trust Lands.
Oil/Gas Production Tax Distribution*** See “Other Funds”
Oil/Gas Research Fund
The Oil and Gas Research Fund, established in 2003, receives 2% of the State’s share of the oil and gas tax collections up to $10 million per biennium. The fund reached its cap in the 2013-15 biennium with the allocation made in December 2013. The balance of the fund is available to the Oil and Gas Research Council as a continuing appropriation to provide grants, loans and other forms of financial assistance to qualified persons for research, development, marketing, and educational projects, and processes or activities directly related to the oil and gas exploration, production, or refining industry, or the petroleum marketing industry. For additional information visit the
Oil and Gas Research Program website.
Other Funds: ***
There are several other dedicated funds which act as clearing accounts. Moneys are deposited in these funds then paid out within a short period of time. Some of these funds are:
- Financial Institutions Tax Distribution Fund
- Highway Tax Distribution Fund
- Oil and Gas Production Tax Distribution Fund
- Oil Extraction Tax Development Trust Fund
- State Aid Distribution Fund
- Township Road and Bridge Fund
These, and other, funds hold the moneys from certain revenue streams until the distributions are made to the appropriate political subdivisions. In the case of monthly distributions such as the Highway Tax Distribution, Oil and Gas Gross Production, and Coal Severance taxes these funds only maintain a balance for a couple of weeks. Other distributions, such as State Aid or Township Road and Bridge, are paid out on a quarterly basis, and a few such as the Financial Institutions Tax, Senior Mill Levy, and Homestead Property Tax Credit are paid out on an annual basis. In these cases the fund may carry a balance for a longer time period.
To see all of the tax distributions performed by the Office of State Treasurer and search for distributions made to your county, city, school or township visit the Tax Distribution page of our website.
Outdoor Heritage Fund
The Outdoor Heritage Fund was created during the 2013 legislative session. Its purpose is to provide grants to state agencies, tribal governments, political subdivisions and nonprofit organizations to:
- Provide access for sportsmen to public and private lands
- Create habitats for fish and other wildlife
- Improve, maintain and restore water quality, soil conditions, plant diversity and animal systems
- Support stewardship practices to support farming and ranching
- Conserve natural areas for recreation.
Grant applications are accepted by the Outdoor Heritage Fund Advisory Board. The voting members of the Advisory Board consist of stakeholders from the following groups: the agriculture community, energy industry, conservation community, business community and recreation and parks association. The Advisory Board reviews the grant applications and makes recommendations to the Industrial Commission who determines which projects receive grants. Members of the Industrial Commission are the Governor, Attorney General, and Agriculture Commissioner.
The Outdoor Heritage Fund receives a portion of the Oil and Gas Gross Production Tax with a maximum of $15 million per fiscal year (the state fiscal year runs from July 1 to June 30). As of September 22, 2014 the Outdoor Heritage Fund has received $11,983,444.77 since its inception on July 1, 2013. For additional information about the Fund and the grant process visit the website for the Industrial Commission.
Pension Trust (TFFR/PERS)
The North Dakota Pension Trust Fund is managed by the State Investment Board. The eight funds in the Pension Trust Fund are the Teachersż Fund for Retirement, Public Employees Retirement System, City of Bismarck Employees Pension, City of Bismarck Police Pension, Job Service of North Dakota Pension, City of Fargo Employees Pension, City of Grand Forks Employees Pension, and the Grand Forks Park District.
As of September 30, 2014, the market values of the individual funds are:
|Teachers' Fund for Retirement (TFFR)||$2,021,059,673|
|Public Employees Retirement System (PERS)||$2,308,416,720 |
|City of Bismarck Employees Pension||$78,132,449 |
|City of Bismarck Police Pension||$34,285,500 |
|Job Service of North Dakota Pension||$96,025,390 |
|City of Fargo Employees Pension||$9,655|
|City of Grand Forks Employees Pension||$56,355,233 |
|Grand Forks Park District||$5,919,091 |
|As of September 30, 2014, the market value of the Pension Trust Fund is $4,600,203,712.|
|**The City of Fargo Employees Pension withdrew its assets from SIB management in fiscal 2014|
Property Tax Relief Fund
This Property Tax Relief Fund (PTRF) was created in 2011 for the purpose of funding the education mill levy reduction grants which the legislature instituted as a property tax relief measure. This program is suspended until January 1, 2015, for details see NDCC 57-64. Due to the suspension and the grant program not being funded in the 2013-15 biennium, the Legislative Assembly directed the Office of Management and Budget to transfer the accumulated balance to the General fund for the 2011-13 biennium. Funding for the Property Tax Relief Fund is taken from the state’s share of the Oil and Gas Gross Production and Extraction taxes. The Fund is capped at $341,790,000 per biennium. Balance as of October 1, 2014 was $657 million.
Renewable Energy Development Fund
This fund was established by the Legislature in 2007. In 2013 the Legislature authorized $3,000,000 of funding be made available each biennium to the Renewable Energy Fund from the Resources Trust Fund.
North Dakota's Renewable Energy Program (REP) was established by the Legislature in 2007 under the control of the North Dakota Industrial Commission. The law provides that the Industrial Commission shall consult with the Renewable Energy Council (REC). The Program's responsibilities include providing financial assistance as appropriate to foster the development of renewable energy and related industrial use technologies including, but not limited to, wind, biofuels, advanced biofuels, biomass, biomaterials, solar, hydroelectric, geothermal, and renewable hydrogen through research, development, demonstration and commercialization. In addition the Program shall promote research and utilization of renewable energy co-product utilization for livestock feed, human food products and industrial use technologies.
For additional information visit the website for the Industrial Commission.
Research ND Fund
Established in 2013, Research ND is a continuation or evolution of the Centers of Excellence & Research Excellence programs.
Research ND matching funds are awarded on a competitive basis for projects based on proposals submitted jointly by researchers from North Dakota research universities and private partners.
The legislature appropriated $12 million to the Research ND Fund in 2013. As of October 1, 2014 the balance of the fund was $11,321,951.12. This amount includes interest earned on the principal of the fund. For additional information about Research ND visit the website for the
North Dakota Department of Commerce.
* Resources Trust Fund
Provided for both in statute and in the North Dakota Constitution at Article X, § 22, the Resources Trust Fund was established with the purpose of providing funding – by legislative appropriation – for construction of water-related projects and programs for energy conservation.
NDCC section 57-51.1-07 allocates 20% of the Oil Extraction Tax (OET) collections to the Resources Trust Fund. During the 2011-13 biennium the fund received in excess of $390 million in Oil Extraction Tax dollars.
In addition to the OET as a source of income, the fund earns interest on the repayment of loans made for certain regional water projects. This happens often when funding is provided for projects that will result in an entity collecting user fees, such as the construction of a rural water system for a regional water authority.
The balance of the Resources Trust Fund on October 1, 2014 was over $539 million. For information relating to water projects utilizing funding from the Water Development Trust Fund visit the website for the
State Water Commission.
Strategic Investment and Improvements Fund
Section 15-08.1-08, created by the 2011 Legislative Assembly in House Bill 1451, and established the Strategic Investment and Improvements Fund (SIIF).
The SIIF holds the revenue from assets and collections earned from 758,000 sovereign mineral acres, including those formerly owned by the Bank of North Dakota and State Treasurer and minerals located under navigable rivers and lakes. The SIIF also receives a substantial portion of the Oil and Gas Production and Extraction Tax collections. (more than $712 million during the 2011-13 biennium) The SIIF is intended to provide funding for one-time expenditures relating to improving state infrastructure or for initiatives to improve the efficiency and effectiveness of state government.
This section of law also provides if the unobligated balance of the SIIF exceeds $300 million at the end of any month, 25 percent of any revenues received for deposit in the SIIF must be deposited in the Legacy Fund. The Fund capped in the 2011-13 biennium, this resulted in additional deposits to the Legacy Fund totaling $148.7 million.
The Strategic Investment and Improvements Fund is invested by the North Dakota Department of Trust Lands at the direction of the Board of University and School Lands.
For quarterly financial reports, investment performance reports and annual financial statements for the SIIF visit the website of the
Department of Trust Lands.
The Fund's balance as of August 31, 2014 totaled $1,542,213,000.
Siting Process Recovery Fund
This fund is used by the Public Service Commission(PSC) to cover expenses incurred through the process of approving sites for energy conversion facilities (power plants, wind farms, coal gasification plants, oil refineries, natural gas processing plants, etc.) and transmission facilities (electric power lines and pipelines for gas or liquid). The application fees collected by the PSC make up the deposits to this fund. Any portion of the fee which exceeds the expenses incurred is refunded to the applicant. The fund balance on October 1, 2014 was nearly $4.0 million. For additional information about the energy conversion and transmission facility siting process visit the Siting Section of the Public Service Commission website.
State Aid Distribution Fund*** See “Other Funds”
State Disaster Relief Fund
The Disaster Relief Fund is used subject to legislative appropriations, emergency commission and budget section approval to provide the required state share of funding for expenses associated with presidential-declared disasters in the state. It is also used to reimburse costs associated with wide area search and rescue activities. A portion of the funding for the Disaster Relief Fund comes from direct appropriation by the legislature. An additional $22 million is allocated to the fund from the State’s share of the Oil and Gas Gross Production and Extraction taxes. The balance of the fund on October 1, 2014 was just over $88 million.
The Department of Emergency Services is responsible for administering the Disaster Relief Fund. For information relating to disaster relief and mitigation in the state visit the website for
North Dakota Department of Emergency Services.
Tobacco Prevention and Control Trust Fund
Established by initiated measure in 2008, the Tobacco Prevention and Control Trust Fund provides funding for tobacco prevention and control within the state of North Dakota. Funding for this fund comes from all payments made to North Dakota under subsection IX(c)(2) of the Master Settlement Agreement. These annual payments began in 2008 and will continue through 2017. To date this fund has received deposits of $71,599,649.05. As of October 1, 2014 the balance of the fund was nearly $45.4 million. For additional information about the Center for Tobacco Prevention and Control Policy visit www.breathend.com.
Tobacco Settlement Trust Fund
The Tobacco Settlement Trust Fund was established in 1999 to receive payments as a result of the settlement arising from the legal action, State of North Dakota v. Philip Morris, Inc. The passage of an initiated measure in 2008 required the payments to be divided as follows. The payments received under subsection IX(c)(1) of the Master Settlement Agreement are divided between the Community Health Trust Fund (10%), Common Schools Trust Fund (45%), and the Water Development Trust Fund (45%). However, the payments received under subsection IX(c)(2) of the Master Settlement Agreement are deposited into the Tobacco Prevention and Control Trust Fund.
The annual payments under subsection IX(c)(1) of the Master Settlement Agreement began in April of 1999 and continue in perpetuity. As of September 30, 2014, North Dakota has received $361,720,131.07 under subsection IX(c)(1). Of this amount $36,172,013.09 has been deposited in the Community Health Trust Fund and $162,774,058.98 has been deposited into each the Common Schools and Water Development Trust Funds.
The annual payments under subsection IX(c)(2) began in April 2008 and will continue until though 2017. As of September 30, 2014, North Dakota had received $71,599,649.05 under this subsection. The entire amount has been deposited in the Tobacco Prevention and Control Trust Fund. For information relating to this fund and how the funds are utilized visit the website for the
Center for Tobacco Prevention and Control Policy.
Township Road and Bridge Fund*** See “Other Funds”
Veteran’s Cemetery Trust Fund
This fund receives $5 from the issuance of each veteran's license plate and donations. Investment of the fund is the responsibility of the State Treasurer. The interest in the fund is to be deposited in the Veterans' Cemetery maintenance fund for the purpose of providing funding for salaries and maintenance at the cemetery. As of October 1, 2014 the balance of the Veteran’s Cemetery Trust Fund was $449,146.
* Veterans Postwar Trust Fund
In 1996, North Dakota citizens voted to create a constitutionally protected trust fund to provide benefits to existing and future veterans and their families. The State Treasurer is the trustee of the fund, which is to be invested to both survive in perpetuity and provide income to the Administrative Committee on Veterans Affairs (ACOVA) for grants and programs benefitting our veterans.
Total earnings for the 2011-2013 biennium were $315,404.86. As required by law, $262,371.92 has been distributed to the ACOVA for their programs. This represents FY 2012 earnings of $111,020.93 and FY 2013 earnings of $151,350.99. The remaining $53,032.94 increased the principal of the fund for the future benefit of veterans.
As of October 1, 2014 the investment balance was $5,752,648.
Water Development Trust Fund
The Water Development Trust Fund was established in 1999 to be used for repayment of bonds issued to finance water projects. The source of funding for the Water Development Trust Fund is 45% of the funds received under subsection IX(c)(1) of the 1998 Master Settlement Agreement with tobacco product manufacturers. Expenditures from this fund may only be made by legislative appropriation and are used to address the long-term water development and management needs of the state. As of October 1, 2014, the current balance of the fund is over $19.4 million. For information relating to water projects utilizing funding from the Water Development Trust Fund visit the website for the State Water Commision.
Workforce Enhancement Fund
The Workforce Enhancement Fund was created in 2007. The workforce enhancement program provides matching grants to certain two-year colleges in the state who are assigned primary responsibility for workforce training. These grants are used to create or enhance training programs to address workforce needs for private sector companies. The grants may be used for curriculum development, equipment, recruitment, and training and certification of instructors, but may not be used to replace funding for current operations. These grants require one dollar from private sector contributions for each dollar of state money.
The total appropriations for the Workforce Enhancement Fund for the 2013-15 biennium are $4 million. The balance of the fund on October 1, 2014 was just over $2.3 million.
The Department of Commerce, Division of Workforce Development is responsible for administration of this program.