About 35 people attended the meeting including Williston Mayor Ward Koeser, City Commissioner Brad Bekkedahl and state Rep. Bob Skarphol. The panelist heading the 90-minute presentation were state Rep. Dave Weiler, North Dakota Petroleum Council President Ron Ness and Northern Alliance of Independent Producers President Robert Harms.
Measure 1 is a proposed constitutional amendment to create a permanent oil trust fund for North Dakota from oil extraction and production tax revenues. The state's current statutory permanent oil trust fund was established in 1996 and receives funding only after oil tax revenues are distributed among the Common School Trust Fund, Foundation Aid Stabilizing Fund, Water Resources Trust Fund, Oil and Gas Impact Grant, Counties, Cities and Schools Fund, and Oil and Gas Research Fund, said Weiler. Another $71 million is allocated to the state General Fund operating budget.
"There is nothing permanent about it," said Weiler, adding the bipartisan effort to pass the measure resulted after legislators raised concerns that the current trust fund is easily accessed.
"The statutory, not-so-permanent oil trust fund, has been raided each and every legislative session; so we need to put in place a protected trust fund to protect some of the oil tax revenue, in never seen numbers, for future generations of North Dakotans," added Weiler. Under Measure 1, the six groups would continue to receive funds from oil tax revenue before any surplus is deposited into the Constitutional Permanent Oil Trust Fund. The General Fund operating budget also would be increased by $29 million to $100 million, which would be adjusted according to the Consumer Price Index, added Weiler. Whatever interest the permanent oil trust fund generates also would be available for spending, he said.
Measure 1 provisions require 75 percent of the Legislature to pass a resolution to access up to 20 percent of the principal amount of the permanent trust fund. The existing fund needs 67 percent of the Legislature to approve tapping the fund, said Weiler. The amount would be accessible only once during the biennium.
"It’s not an oil issue…this is really an issue of what to do with the additional surplus revenue the state has seen now through oil and gas production...Unfortunately, there are not immediate gratifications for North Dakotans -- it’s a delayed gratification -- as we put money aside for future usage," said Ness.
Ness added that having a reliable trust fund could determine whether young people stay or leave to find better opportunities.
"Williston is a great place to talk about this because we all know the oil industry is cyclical," said Ness.
The panel said it is essential to also rely on the other three forms of revenue -- sales tax, personal income tax, and corporate income tax -- to cover additional programs and needs since these sources are providing significant surpluses for the state.
"Growth has taken place across the board and not just at the oil level," said Welier.
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