Friday, July 21, 2017

Legacy Fund Data Through June, 2017

Source here.
  • most recent deposit, June 21, 2017: $37 million
  • total deposits since inception: $3.9 billion
  • net assets in the fund, as of January, 2017: $4.3 billion 
  • height of the boom: $90 million / month being deposited
  • currently: about $30 million / month being deposited
Meanwhile, on June 5, 2017, The Grand Forks Herald reported that for the first time ever, ND legislators will tap the earnings from the fund.
  • purpose: to help balance the budget; 2017 - 2019 budget
  • amount: $200 million
Options for strategic management of the fund:
  • one option -- spend all the earnings; deposits would still total $20 billion by 2060 -- no one advocates this option
  • second option -- at the other extreme: reinvest all earnings; doing so, the fund would balloon to $102 billion by 2060
  • middle of the road options
    • reinvest 75% of the fund's earnings; spending 25%; balance of $65 billion by 2060
    • other option: "reinvest, replace, and spend": $50 billion by 2060
Typical political talk: "no one advocates the option of spending all the earnings." LOL. Total earnings to date in the Legacy Fund: $400 million. In its first move on these earnings, the legislature will spend 50% of these total earnings on one item: balancing the budget. It appears no one advocates spending all the Legacy Fund earnings  but it's already happening. 

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