Page 8 ■ Thursday, March 29, 2012


Setting records across industry Continued from page 1


Dakota OMB, said revenue collec-


tions overall are far ahead of revenue forecasts made by the OMB. “We are way ahead of what our pro- jections were,” Sharp said. “Sales tax is particularly running higher than pro- jected.” Through December 2011, sales tax


collections were at approximately $496 million during the fi rst six months of the biennium. This was nearly 43 per- cent ahead of the April 2011 legislative forecast of $347 million to be collected through the fi rst six months.


“We are way ahead of what our projections were. Sales tax is particularly running


higher than projected.” – Director of the North Dakota OMB Pam Sharp


“A lot of the sales tax collections have


to do with western North Dakota,” Sharp said. “I know the response to the fl ood has generated some additional sales tax.” She explained that the large quanti-


ties of materials and equipment being purchased in the oil patch are generat- ing heavy sales tax revenue. She added that materials purchased by homeown- ers who are rebuilding in cities such as Minot are also a factor in increased sales tax revenue. Sharp said eventually the growth will


reach a peak since oil production, in par- ticular, has its limits. She said the OMB is keeping a close eye on revenue and is try- ing to determine how factors such as oil production are affecting revenue. This, she said, will help in being able to cre- ate accurate forecasts in the future. Sharp


added that the levels of revenue coming in the past six months have been exciting and shocking to observe. “I’ve never seen this before,” Sharp


said. The state’s agriculture industry also


faced a challenging year. North Dakota Agriculture Commissioner Doug Goeh- ring said a number of words described North Dakota agriculture in 2011: vola- tile, unprecedented, extreme and bitter- sweet. Goehring said between the heavy snowfall and spring rain, moisture and fl ooding were major issues for producers in 2011. “We dealt with the impact of fl ood- ing east and west. It just didn’t seem to quit raining,” Goehring said. He said dif- fi cult conditions for producers meant an unprecedented 25 percent of acreage in North Dakota went unplanted last year. “In a $7-8 billion industry, with 25


percent unplanted, that’s a couple of billion dollars you’re taking out of the economy,” Goehring said. Goehring said there were a couple of


areas that reported good yields. He said there was a thin band north of Wash- burn up to Max that recorded good yields as well as a thin stretch along U.S. Highway 2 near Rugby, stretching east to the border.


Looking forward, Goehring said,


there is some anxiety about the lack of moisture this winter. However, he said, producers he has spoken with across the state are confi dent that 2012 will be bet- ter.


“We should be able to get a lot more


in the ground this year,” Goehring said. “I think everyone is looking forward to a better year this year.” Associated Press reports contributed to


this story. Reach Nick Smith at 701-250- 8255 or at nick.smith@bismarcktribune. com.


BAKKEN NEWS


BAKKEN BREAKOUT WEEKLY BISMARCK TRIBUNE EDITIORIAL


Campaign 2012 should be talking oil


North Dakota banking record tax revenues


North Dakota produces more than 500,000 barrels of oil a day. The price of oil has been hovering around $100 a barrel. With no discounts, that produc- tion is worth more than $50 million a day. In February, the state’s oil and gas taxes generated $159 million in rev- enue, or more than $5 million a day. It’s a lot of money. More than state budget planners, the governor and the Legislature expected. More than any- one expected. Thirty percent of that revenue goes


straight to the Legacy Fund and cannot be touched until June 30, 2017. Another third represents the state share, which is allocated to a variety of funds, includ- ing the property tax relief fund and general fund, and can be spent by the 2013 Legislature. From there, the cash could go many different directions. And because there’s a large volume


of capital accumulating in state ac- counts, expect plenty of suggestions of how to spend it in the next biennium. The people of North Dakota ought


to be heard before the state decides how to spend the funds, same as for money from the Legacy Fund when the time comes.


This winter, Gov. Jack Dalrymple began a process of talking to offi cials in cities and counties directly impacted by oil development and created an on- going state response to the concerns he and other state offi cials heard on tours of the oil patch. Democratic-NPL can- didate for governor Ryan Taylor has proposed a similar process. The conversation, however, needs to


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go beyond the western third of North Dakota. It needs to engage all of the state’s citizens, as it did two years ago when the people voted to establish the Legacy Fund. They felt the benefi ts of oil development ought to be carried into the future. However, they didn’t address exactly how the money should be spent after it becomes available in 2017. They left that up to the Legisla- ture.


Sen. Dwight Cook, R-Mandan, has


the right idea. He suggested recently that the 2013 Legislature approve a study on what to do with the Legacy Fund. “We need to put these ideas into the public policy arena, which is the Leg- islature,” Cook said. “We need to come up with a plan ... that benefi ts the peo- ple of North Dakota.” Cook is right. The Legislature


should have a plan. There should be a plan for the Legacy Fund and also for the 2013-15 biennium. And the plans should be based on a continuing con- versation with the people. Because it’s an election year, tapping


into the public’s common sense can be expedited if candidates and constitu- ents carry on a frank discussion about the benefi t of oil and the responsibil- ity of the state. That means hashing it over during debates and forums, asking questions when candidates show up at your doorstep. It means going deeper on the issues than the sound bytes printed up as campaign brochures and bumper stickers. It means making oil the issue.


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