December 20, 2012
State Treasurer Kelly Schmidt Announces: Legacy Fund Deposits Continue to Grow
State Treasurer Kelly Schmidt recently transferred $60,838,520.66 into the North Dakota Legacy Fund. This transaction brings the total of deposits to the Legacy Fund to $707,521,272.59 since making the first transfer in September of 2011.
“The increases we have seen in deposits to the Legacy Fund are staggering. The recent news of continued growth in oil production indicates these deposits will continue to grow” commented Treasurer Schmidt. “This current trend means there will be a significant source of funding available to which all North Dakotans will benefit.”
Under Article X, Section 26 of the North Dakota Constitution, thirty percent (30%) of all revenue derived from North Dakota’s oil and gas extraction and gross production taxes are deposited in to the Legacy Fund. Neither the principal nor the income of the Legacy Fund may be spent prior to July 1, 2017. Income earned after this date will be transferred to the state General Fund at the end of each two-year budget cycle. Expending any of the fund principal requires a two-thirds majority vote of both houses of the legislature and is limited to fifteen percent (15%) of the principal per biennium.
The Legacy Fund is invested by the State Investment Board.
The State Treasurer and her staff serve the people of North Dakota by providing sound leadership and prudent investment practices of state dollars. The Treasurer’s office also works in cooperation with the Bank of North Dakota. The Mission of the Office of the State Treasurer is to fulfill its constitutional and statutory responsibilities in order to assure sound financial oversight and absolute safety of all public funds collected, managed, and disbursed.