…Compared to some of its neighboring states, North Dakota has provided less funding for local communities to cope with the challenges associated with the oil boom, according to a report done by Montana-based Headwaters Economics.
In 2011, the report found, local governments received 8 percent of total state oil and gas revenue directly. That share is expected to reach 11.2 percent in the next fiscal year due to a new distribution formula. Still, this figure is low compared to what is set aside for affected communities in states such as Colorado, Montana and Wyoming. However, in the coming fiscal year, North Dakota will make a one-time infrastructure assistance payment of $885 million to impacted local communities.
Researchers at Headwaters also note that state planning now can help prevent a downturn after the oil boom ends. They suggest that states establish “legacy funds” to provide long-term benefits once resources are depleted. North Dakota established such a fund in 2011, and the state’s first deposit gave the fund a beginning balance of $67 million.…