Staff outlines legacy fund POMV distribution, allocations to highways and property tax relief
June 25, 2025 | Legislative, North Dakota
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Adam Mateuk and committee members reviewed how the Legacy Fund’s percent‑of‑market‑value (POMV) distribution will be applied under changes enacted in the recent session.
Mateuk said statute now sets the POMV distribution at 8 percent and staff estimated that would yield roughly $687 million for 2025–27 based on the June market value used in the presentation. He described the distribution sequence in statute: first the legislatively specified bond payments (about $102.6 million per session per the law) are paid from the POMV amount, then the remainder is allocated with 30 percent to the State Highway Fund and 70 percent to the Legacy Property Tax Relief Fund for the primary residence credit.
Committee members asked for Rio (the state investment office) to report final realized and unrealized earnings and for a comparison showing what would have been distributed under the prior realized‑earnings method. Mateuk said Rio would provide final numbers after the fund closes its June books and that the statutory POMV method intentionally leaves excess earnings in principal to grow the fund.
A committee member asked how long bond payments for the sinking and interest fund remain; Mateuk said those payments were authorized for up to 20‑year bonds, meaning multiple biennia of payments remain. Staff noted the Legacy Earnings Fund allocation language takes the sinking and interest payment first, then performs the 30/70 split on the remainder.
No committee action was required; staff said they will request Rio’s final reporting and include the comparison at a future meeting.
Mateuk said statute now sets the POMV distribution at 8 percent and staff estimated that would yield roughly $687 million for 2025–27 based on the June market value used in the presentation. He described the distribution sequence in statute: first the legislatively specified bond payments (about $102.6 million per session per the law) are paid from the POMV amount, then the remainder is allocated with 30 percent to the State Highway Fund and 70 percent to the Legacy Property Tax Relief Fund for the primary residence credit.
Committee members asked for Rio (the state investment office) to report final realized and unrealized earnings and for a comparison showing what would have been distributed under the prior realized‑earnings method. Mateuk said Rio would provide final numbers after the fund closes its June books and that the statutory POMV method intentionally leaves excess earnings in principal to grow the fund.
A committee member asked how long bond payments for the sinking and interest fund remain; Mateuk said those payments were authorized for up to 20‑year bonds, meaning multiple biennia of payments remain. Staff noted the Legacy Earnings Fund allocation language takes the sinking and interest payment first, then performs the 30/70 split on the remainder.
No committee action was required; staff said they will request Rio’s final reporting and include the comparison at a future meeting.
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