North Dakota Allocation of Oil Extraction Taxes, Constitutional Measure 2 (2016)

North Dakota Measure 2
Election date November 8, 2016
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin State legislature

2016 measures
June 14
Referred Measure 1 d
November 8
Constitutional Measure 1 a
Constitutional Measure 2 a
Initiated Constitutional Measure 3 a
Initiated Statutory Measure 4 a
Initiated Statutory Measure 5 a
Polls
Voter guides
Campaign finance
Signature costs

The North Dakota Allocation of Oil Extraction Taxes Measure, also known as Constitutional Measure 2, was on the November 8, 2016, ballot in North Dakota as a legislatively referred constitutional amendment. It was approved.

A "yes" vote supported authorizing the legislature to allocate excess revenues from oil extraction taxes from the foundation aid stabilization fund for education purposes.

A "no" vote opposed authorizing the legislature to allocate excess revenues from oil extraction taxes from the foundation aid stabilization fund for education purposes, thereby continuing to only allow the governor to expend principal from the stabilization fund.

Election results

Measure 2
Result		Votes	Percentage
a Yes		209,651	64.3%
No		116,418	35.7%

Election results from North Dakota Secretary of State

Overview

The North Dakota Constitution stipulates that 10 percent of revenues from oil extraction taxes be deposited in the state treasury's foundation aid stabilization fund. While Constitutional Measure 2 did not change the percent of revenues that is to be deposited in this fund, it was designed to change how the funds may be expended. Prior to the passage of Measure 2, the constitution stated that the foundation aid stabilization fund could only be expended by gubernatorial order and only to offset foundation aid reductions due to a revenue shortage. Measure 2 instead allowed the governor to order expenditures due to reductions in state aid to school districts due to revenue shortages. It also added a section that allowed the legislature to appropriate funds to be used for other education related purposes when the foundation aid stabilization fund exceeds 15 percent of the general fund appropriation for state aid to school districts.

Text of measure

Ballot summary

The ballot summary was as follows:

“

This measure expands the educational purposes for which the foundation aid stabilization fund may be used.

”

Ballot language

The ballot language was as follows:

“

This constitutional measure would amend and reenact section 24 of Article X of the North Dakota Constitution by depositing ten percent of the revenue from oil extraction taxes in the common schools trust fund and ten percent of the revenue in the foundation aid stabilization fund. Except as otherwise provided, the principal of the foundation aid stabilization fund may be expended upon order of the Governor, only to offset reductions in state aid to school districts due to a revenue shortage. The measure also would allow the legislative assembly to use any excess principal balance of the foundation aid stabilization fund for education-related purposes whenever the balance exceeds fifteen percent of the general fund appropriation for state aid to school districts for the most recently completed biennium.

”

Measure analysis

The measure analysis was as follows:

“

Constitutional Measure No. 2 was placed on the ballot by action of the 2015 North Dakota Legislative Assembly with the passage of Senate Concurrent Resolution No. 4003 (2015 Session Laws, Ch. 499). If approved, this constitutional measure would amend and reenact section 24 of Article X of the North Dakota Constitution by depositing ten percent of the revenue from oil extraction taxes in the common schools trust fund and ten percent of the revenue in the foundation aid stabilization fund. Except as otherwise provided, the principal of the foundation aid stabilization fund may be expended upon order of the Governor, only to offset reductions in state aid to school districts due to a revenue shortage. The measure also would allow the legislative assembly to use any excess principal balance of the foundation aid stabilization fund for education-related purposes whenever the balance exceeds fifteen percent of the general fund appropriation for state aid to school districts for the most recently completed biennium. Voting “YES” means you approve the measure as summarized above. Voting “NO” means you reject the measure as summarized above.

”

Constitutional changes

The measure amended Article X, Section 24 of the North Dakota Constitution:

BE IT RESOLVED BY THE SENATE OF NORTH DAKOTA, THE HOUSE OF REPRESENTATIVES CONCURRING THEREIN: That the following proposed amendment to section 24 of article X of the Constitution of North Dakota is agreed to and must be submitted to the qualified electors of North Dakota at the general election to be held in November 2016, in accordance with section 16 of article IV of the Constitution of North Dakota. SECTION 1. AMENDMENT. Section 24 of article X of the Constitution of North Dakota is amended and reenacted as follows: Section 24. 1. TwentyTen percent of the revenue from oil extraction taxes from taxable oil produced in this state must be allocated as follows: 1. Fifty percent must be deposited in the common schools trust fund. 2. FiftyTen percent of the revenue from oil extraction taxes from taxable oil produced in this state must be deposited in the foundation aid stabilization fund in the state treasury, the interest income of which must be transferred to the state general fund on July first of each year. The a. Except as otherwise provided, the principal of the foundation aid stabilization fund may be expended only upon order of the governor, who may direct such a transfer only to offset foundation aid reductions thatin state aid to school districts, which were made by executive action, pursuant to law, due to a revenue shortage. b. Whenever the principal balance of the foundation aid stabilization fund exceeds fifteen percent of the general fund appropriation for state aid to school districts, for the most recently completed biennium, as determined by the office of management and budget, the legislative assembly may appropriate or transfer any excess principal balance. Such amount may be used for education - related purposes, as provided by law.

Full text

The full text of the measure can be found here.

Support

North Dakota United led the support campaign for Measure 2.

Arguments in favor

North Dakota United said the following on its support page for Measure 2:

“

North Dakota United is leading the charge in urging a “yes” vote on Measure 2. Our state is heading into an uncertain financial future, and all areas of state government are facing severe budget cuts. Without access to funds in the State Aid Stabilization Fund, public education funding will face the same 10 percent cut that is being asked of state agencies and higher education. School districts would be forced to choose between raising local property taxes or cutting into personnel costs and increasing class sizes. Measure 2 will also affect our members in public services and higher education. The Legislature could potentially decide to offset cuts to K-12 education by taking more money away from state agencies and the university system. Very simply, a “yes” vote on Measure 2 is good for kids. It will help to keep class sizes low and increase the individual attention each student receives from their teachers and education support professionals. Voting “yes” on Measure 2 is good for public education. [...] In order to allow our public schools to continue to offer the highest quality public education available to our students, please VOTE YES on Measure 2.

”

Campaign finance

See also: Campaign finance requirements for North Dakota ballot measures

Total campaign contributions:
Support:	$0.00
Opposition:	$0.00

No committees were registered in support or opposition to Measure 2.

Reports and analyses

Secretary of state analysis

The North Dakota Secretary of State's analysis of Measure 2 was as follows:

“

Constitutional Measure No. 2 was placed on the ballot by action of the 2015 North Dakota Legislative Assembly with the passage of Senate Concurrent Resolution No. 4003 (2015 Session Laws, Ch. 499). If approved, this constitutional measure would amend and reenact section 24 of Article X of the North Dakota Constitution by depositing ten percent of the revenue from oil extraction taxes in the common schools trust fund and ten percent of the revenue in the foundation aid stabilization fund. Except as otherwise provided, the principal of the foundation aid stabilization fund may be expended upon order of the Governor, only to offset reductions in state aid to school districts due to a revenue shortage. The measure also would allow the legislative assembly to use any excess principal balance of the foundation aid stabilization fund for education-related purposes whenever the balance exceeds fifteen percent of the general fund appropriation for state aid to school districts for the most recently completed biennium.

”

Path to the ballot

See also: Amending the North Dakota Constitution

According to the North Dakota Constitution, a majority vote was required in one legislative session of the North Dakota Legislature to qualify Constitutional Measure 2 for the ballot. On April 28, 2015, the North Dakota Senate unanimously adopted the amendment, with 47 voting "yea." The North Dakota House of Representatives adopted the amendment on the same day with 68 voting "yea."

Senate vote

April 28, 2015

North Dakota SCR 4003 Senate Vote
Result		Votes	Percentage
a Yes		47	100.00%
No		0	0.00%

House vote

April 28, 2015

North Dakota SCR 4003 House vote
Result		Votes	Percentage
a Yes		68	76.40%
No		21	23.60%

State profile

Demographic data for North Dakota
	North Dakota	U.S.
Total population:	756,835	316,515,021
Land area (sq mi):	69,001	3,531,905
Race and ethnicity**
White:	88.7%	73.6%
Black/African American:	1.6%	12.6%
Asian:	1.2%	5.1%
Native American:	5.3%	0.8%
Pacific Islander:	0%	0.2%
Two or more:	2.2%	3%
Hispanic/Latino:	2.9%	17.1%
Education
High school graduation rate:	91.7%	86.7%
College graduation rate:	27.7%	29.8%
Income
Median household income:	$57,181	$53,889
Persons below poverty level:	12.2%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in North Dakota. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in North Dakota

North Dakota voted Republican in all seven presidential elections between 2000 and 2024.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, four are located in North Dakota, accounting for 1.94 percent of the total pivot counties.

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. North Dakota had three Retained Pivot Counties, 1.66 percent of all Retained Pivot Counties.

More North Dakota coverage on Ballotpedia

• Elections in North Dakota
• United States congressional delegations from North Dakota
• Public policy in North Dakota
• Endorsers in North Dakota
• North Dakota fact checks
• More...

Related measures

Taxes measures on the ballot in 2016
State	Measures
North Dakota	North Dakota Tobacco Tax Increase, Initiated Statutory Measure 4 d
Washington	Washington State-Provided Campaign Financing Funded by a Non-Resident Sales Tax, Initiative 1464 d
Washington	Washington Modifying Tax Exemption Criteria for Alternative Fuel Vehicles, Advisory Vote 15 d
Washington	Washington Taxation of Stand-Alone Dental Plans, Advisory Vote 14 d
Missouri	Missouri 60 Cent Cigarette Tax, Constitutional Amendment 3 d
Illinois	Illinois Transportation Taxes and Fees Lockbox Amendment a
Florida	Florida Property Tax Exemptions for Renewable Energy Equipment, Amendment 4 a
Nevada	Nevada Medical Equipment Sales Tax Exemption, Question 4 a
Oregon	Oregon Business Tax Increase, Measure 97 d
Colorado	Colorado Tobacco Tax Increase, Amendment 72 d
Missouri	Missouri 23 Cent Cigarette Tax, Proposition A d
Maine	Maine Tax on Incomes Exceeding $200,000 for Public Education, Question 2 a
New Jersey	New Jersey Dedication of All Gas Tax Revenue to Transportation, Public Question 2 (2016) a
Oklahoma	Oklahoma One Percent Sales Tax, State Question 779 d
Utah	Utah Amendment C, Tax Exemptions for Property Leased By State Measure d

External links

Support

• North Dakota United Vote Yes on Measure 2 page
• Vote Yes on Measure 2 Twitter
• Vote Yes on Measure 2 Facebook

See also

• 2016 ballot measures
• North Dakota 2016 ballot measures
• North Dakota Legislature

External links

• North Dakota Voter Guide 2016
• Measure text

Footnotes

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