Currently, three cities qualify for the hub city status: Williston, Dickinson and Minot.
Williston is listed as having 63.9 percent oil field employment, 38.9 percent in Dickinson and 12 percent in Minot.
Hub cities are eligible for $375,000 annually for each partial or full percent of its workforce employed in the oil and gas industry. School districts in hub cities are eligible for $125,000 for each partial or full percentage point.
Job Service North Dakota was required to update its numbers as part of House Bill 1358, which passed during the 2013 session. HB1358 includes a formula outlining allocations of oil and gas gross production tax allocations to various political subdivisions.How in the world Alexander, Parshall, Dore, and Watford City were not named "hub cities," I suppose we will never know. I assume 100% of workers in Dore and Parshall work in the oil industry, except perhaps for those repairing roads and replacing windshields.
And, of course, they would not be needed if it weren't for the oil industry.
The state tried to explain the "hub" city before when people questioned it. They said in order to become a HUB city, you have to have a population of 10,000 or more. They have a seperate fund for the smaller towns like Watford CIty, Tioga, Stanley, etc... but not sure how that formula works.
ReplyDeleteThank you; that's what I assumed -- based on population. My comments were tongue-in-cheek, of course, but I really appreciate the explanation. Thank you.
DeleteHere is the definition of a "hub" city:
ReplyDeleteThe current oil impact funding policy defines “hub cities” for the oil industry as any community with a population of at least 12,500 people that has at least 1 percent of the private sector jobs in the community related to the oil industry.
I find it interesting that the population has to be at least 12,500. Which is the population of Williston before the boom. I'm sure it has to do with Williston having the most oil and service companies, not to mention employees working in the oil industry. It would be a little strange that Williston wouldn't have qualified as a hub city, but Minot with a population of 40,000 and very few oil companies or workers would have . :)
Great observation about the number 12,500.
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