BISMARCK, N.D. (AP) - North Dakota Gov. Doug Burgum signed legislation Thursday to send millions of dollars of oil tax money to funds that benefit water projects and schools.
The legislation was reluctantly crafted by Republican leaders after Burgum and some lawmakers from both parties said they believed the funds mandated by the constitution were shortchanged over many years.
The legislation will transfer $64.3 million to the common schools trust fund later this year and $128 million to the resources trust fund over as many as two decades.
At issue is whether distribution to the funds should also include the state’s share of revenue from drilling on the oil-rich Fort Berthold Reservation, or just from oil tax revenue on state lands.
Republican leaders had argued the money was correctly distributed by Republican state Treasurer Kelly Schmidt, based on guidance from the attorney general’s office in 2012. They initially introduced legislation that would begin steering some oil tax money into the funds in the future, but not retroactively.
Burgum said in a statement that the “bill is a reasonable compromise that ensures all money intended for education will be spent on students and that the resources trust fund will be made whole over time.”
Republican leaders have been adamant that North Dakota’s schools and water projects were not shorted money in the past, and blamed any problems on “ambiguous” language in the law.
GOP Senate Majority Leader Rich Wardner praised the bill.
“I think it’s an excellent compromise,” Wardner said. “It takes care of these issues.”
Burgum has said North Dakota is on solid financial footing and it would not greatly affect the state’s budget to refill the funds retroactively. Burgum also said it was acceptable to repay the money over time.
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