BISMARCK, N.D. — Preliminary calculations released Wednesday suggest North Dakota lawmakers could have roughly $894 million in available earnings from the Legacy Fund to appropriate during the 2027 legislative session, according to staff of the state Retirement and Investment Office.
Fund growth drives larger spending estimate
The estimate reflects the portion of the fund that can be spent — defined as 8% of the Legacy Fund’s five-year average value. That rolling five-year average is currently projected to be approximately $11.2 billion, driving the larger earnings figure compared with the current biennium.
State officials noted the Legacy Fund has expanded substantially in recent years, rising from near $8 billion in 2022 to just over $15 billion as of May 31. Those increases in market value and investment performance are the primary reasons the estimated distributable earnings would be about 30% higher than what was available for the 2025–2027 biennium.
Estimate not final; subject to June 30 valuation
Retirement and Investment Office staff cautioned the $894 million figure remains preliminary. The final amount will depend on the fund’s confirmed value on June 30, which could raise or lower the available earnings before the transfer scheduled for July 1, 2027.
“You can see the growth over the last five years. It’s been very significant,” said Adam Otteson, chief financial officer for the Retirement and Investment Office.
How current law would distribute the earnings
Under existing law, a portion of the distributable earnings is set aside for debt repayment, with the remainder split between highway funding and property tax relief. Using the preliminary estimate, the Retirement and Investment Office provided a breakdown of how the earnings would flow if no legislative changes are adopted before next session.
| Use | Estimated Amount |
|---|---|
| Debt repayment | $102 million |
| Highway fund (30% of remainder) | $238 million |
| Property tax relief fund | $554 million |
The allocation above assumes the law in place today remains unchanged. Legislators, however, can propose amendments ahead of or during the 2027 session that would modify those distributions.
Property tax relief costs already significant
State leaders reminded stakeholders that recent expansions to the homeowner property tax credit affect the outlays for the current cycle. The expanded credit enacted last year is expected to cost about $430 million during the present biennium — a factor lawmakers and budget writers will keep in mind as they weigh new spending or program changes.
“It’s accurate, but it’s always subject to new legislation that will certainly be introduced,” said Rep. Jonathan Warrey, R-Casselton, commenting on the preliminary spending picture.
Advisory board leadership changes
At the same meeting where the estimates were presented, members of the Legacy and Budget Stabilization Fund Advisory Board elected new leadership. Sen. Jerry Klein, R-Fessenden, moved into the chair role, while Rep. Warrey was chosen as vice chair. Those board officers will play roles in advising on policy and communicating fiscal outlooks to the Legislature and the public.
What comes next
State finance officials will finalize the fund’s year-end value after June 30, at which point the precise distributable earnings will be confirmed. The transfer of funds is scheduled for July 1, 2027, and the Legislature will determine how to appropriate the balance during its upcoming session. Until then, the preliminary figures provide a baseline for lawmakers, local governments and other stakeholders planning for transportation projects, tax policies and debt service priorities.
- Estimated distributable earnings: $894 million (preliminary)
- Projected five-year average fund value: $11.2 billion
- Next steps: final valuation after June 30 and legislative decisions in 2027 session
