Veterans Postwar Trust Fund

North Dakota Constitution: Article X Section 25:

The veterans' postwar trust fund shall be a permanent trust fund of the state of North Dakota and shall consist of moneys transferred or credited to the fund as authorized by legislative enactment. Investment of the fund shall be the responsibility of the state treasurer who shall have full authority to invest the fund only in the same manner as the state investment board is authorized to make investments. All income received from investments is to be utilized for programs which must be of benefit and service to veterans, who are defined by legislative enactment, or their dependents, and such income is hereby appropriated to the administrative committee on veterans' affairs on a continuing basis for expenditure upon those programs selected at the discretion of the administrative committee on veterans' affairs.

North Dakota Century Code: 37-14-14:

The veterans' postwar trust fund is a permanent trust fund of the state of North Dakota and consists of moneys transferred or credited to the fund under this chapter and other laws. Investment of the fund is the responsibility of the state treasurer who shall invest the fund only in those legal investments authorized by section 21-10-07. All income received from investments is to be utilized only for programs of benefit and service to veterans or their dependents, and all income earned in a biennium is appropriated to the administrative committee on veterans' affairs on a continuing basis in the following biennium and not in the biennium the income is earned for expenditure on these programs as authorized by law.

HISTORY OF PWTF

The Post War Trust Fund (PWTF) was established in 1981 with funds remaining in the Vietnam Veterans Adjusted Compensation Fund.

VIETNAM VETERANS ADJUSTED COMPENSATION FUND

1969:  Issuance of Bonds Authorized

• 41st Legislative Assembly Enacts a resolution for a constitutional amendment authorizing the issuance of bonds of the State of North Dakota and the expenditure of the proceeds for the payment of adjusted compensation to North Dakota veterans of the Vietnam conflict. [S.L. 1969, Chapter 592; Senate Concurrent Resolution No. 17]

1970: Issuance of Bonds Approved by citizens

• In statewide primary election held in September, citizens approved the constitutional amendment placed on the ballot by the 1969 resolution. [S.L. 1971, Chapter 616; Approved Constitutional Measure No. 1]

1971: Vietnam Veterans’ Bonus Bonds and Surtax Act. 

• 42nd Legislative Assembly In response to the approved constitutional amendment, legislature enacts the Vietnam Veterans’ Bonus Bonds and Surtax Act.
  • Created a Vietnam Veterans Adjusted Compensation fund and a bond sinking fund.
  • Authorized the issuance of up to $15 million of general obligation bonds to provide funds for the payment of adjusted compensation to North Dakota Vietnam Veterans and the resulting administrative expenses (Chapter 496. HB 1492)
  • The income tax surtax is provided for in Chapter 496 HB 1492 Section 7, effective for tax years beginning on or after January 1, 1972. [S.L. 1971, Chapter 496. HB 1492]
    • Individuals, estates, and (taxable) trusts--Surtax equaled 1% of North Dakota taxable income, with a minimum of $2.50 and a maximum of $12.50.
    • C corporations--Surtax equaled 1% of North Dakota taxable income, with a minimum of $10.00 and a maximum of $25.00.
    • The total amount of the surtax collections are as follows:
      • Fiscal year ending 6/30/73: $2,382,583
      • Fiscal year ending 6/30/74: $2,480766
      • Fiscal year ending 6/30/75: $2,702,977
      • Fiscal year ending 6/30/76: $176,075
      • Fiscal year ending 6/30/77: $25,738
      • TOTAL: $7,768,139
• Vietnam Veterans Bonus-Authority and Procedures (SB 2456)

1973: Surtax Amended. Additional bonds authorized

• 43rd Legislative Assembly amends the income tax surtax statute to provide that trusts not having taxable income are not subject to the surtax. (Note: The statute provides for a minimum surtax to be paid if there is no taxable income.) [S.L. 1973, Chapter 471. SB 2323]
• 43rd Legislative Assembly authorizes issuance of additional $4 million of general obligation bonds for purpose of paying adjusted compensation to Vietnam veterans. [S.L. 1973, Chapter 423. SB 2415]

1975: Vietnam Bonus Surtax Repeal. Funds irrepealable.

• 44th Legislative Assembly repeals Vietnam bonus surtax. [S.L. 1975, Chapter 476. SB 2320]
  • Appropriates $17,000,000 in General Funds for payment of adjusted compensation bonds and interest payments 

1993: Adjusted Compensation (Bonus) and Bond Issue Authority repealed

• 53rd Legislative Assembly repeals Vietnam veterans’ programs (educational assistance, adjusted compensation, and bond issue authority). [S.L. 1993, Chapter 364. SB 2119]

Vietnam Veterans Adjusted Compensation Fund Income and Expenses

• Income:

  • $7,761,050       Income Surtax Collections and interest
  • $16,905,951     Interest income. Bonds
  • $17,000,000     General Fund Appropriations to the Bond Sinking Fund (1975. Chapter 476. SB 2320)
  • $41,667,001 TOTAL INCOME

• Expenditures and uses of funds:

  • $12,873,470     Bonus payments to Veterans
  • $ 464,725         Administration and expenditures to pay bonus'
  • $143,086          Soldiers' Home renovations (1979.  Chapter 55. SB 2014  Section 4)
  • $115,917          Publication of Military Serfvice Record of Vietnam Veterans (1979 Chapter 84 SB 2305) $125,000 appropriated
  • $279,076          National Guard Tuition Waiver (1979. Chapter 38. HB 1139) $550,000 appropriated
  • $100,000          Minot State College-Physical Education Facility  (1979. Chapter 4.  HB 1005. Section 6)
  • $543,300          Facility improvements and Handicapped accessibility projects at institutions of Higher Education (1979. Chapter  HB 1004 Section 2)
  • $100,000          Minot State College-Pioneer Hall renovation (1979. Chapter 85 SB 2378)
  • $400,000          Veterans Aid Loan Fund Increase revolving loan fund to $700,000) (1981. Chapter 364 . SB 2271 Section 7)
  • $3,984,531       All money remaining in Vietnam Veterans Adjusted compensation fund after July 1, 1981 to be transfered to Veterans Post War Trust Fund (1981. Chapter 364 SB 2271 Section 6)
    • "Veterans Post Rehabilitation Reserve Fund" name changed to "Veterans Post War Trust Fund" (1981. Chapter 364 SB 2271 Section 4)
  • $7,077,148       Bond interest payments
  • $4,371              Miscellaneous admin expenditures
  • $3,500,000       National Guard tuition trust fund (1981. Chapter 43. HB 1420)
  • $5,000              POW license plates paid for (1981. Chapter 382 SB 2289 section 2)
  • $100,000          National Guard History (1981 Chapter 88. SB 2207 Section 2)
  • $462,069          Soldiers' Home Capital improvements (1981. Chapter 14. HB 1014 Section 4)
  • $243,000          National Guard Tuition waiver program (1981 Chapter 22. HB 1023 Section 5)
  • $810,000          National Guard Adjutant General Captial improvements (1981 Chapter 22. HB 1023 Section 2. and 1983. SB 2023)
  • $1,050,000       National Guard Adjutant General Army and Air Guard Service Contracts (1983. SB 2023)
  • $1,055,657       Veterans Home Operations (1985 HB 1012)
  • $124,136          National Guard Adjutant General. Recruiting and retention (1985 HB 1016)
  • $818,050          National Guard Adjutant General. Army and Air Guard Service Contract (1985 HB 1016)
  • $3,000,000       National Guard training area development (1985 HB 1515)
  • $616,365          Transer to Veterans Post War Trust Fund (1985 SB 2341)
  • $3,797,100       Transfer to state general fund (1985 HB 1515) NDCC 54-17.1-08
  • $41,667,001 TOTAL EXPENDITURES

Veteran's Postwar Trust Fund-Established

• 1981 Legislative Assembly established the Veterans' Postwar Trust Fund with a transfer of $3,984,531 SB 2271 section 4 & 6 - the remaining monies from the Vietnam Adjusted Compensation Fund. An additional $616,365 was transferred from the remaining funds of the Vietnam War Bond Sinking Fund in 1985. These transfers accounted for around 11% of the original fund balance while only 32% was actually used towards payments of Vietnam Bonuses. The remaining 57% of the original funds was used for veteran, non-veteran and ND National Guard related programs or was transferred back to the general fund when the fund was closed out following the 1985 legislative session.
  • The Trust Fund was set up to be invested by the State Treasurer and the income received was to be utilized in benefit and service to veterans or their dependents (SB 2271). 
• 1983 48th Legislative Assembly allocated $1,419,045 of PWTF to NDDVA and Soldiers Home
  • SB 2014 $1,100,000 for the operation of the Soldiers (Veterans) Home 
  • HB 1014 $319,045 for the operation of the ND Department of Veterans Affairs
• 1985 49th Legislative Assembly allocated $610,684 of PWTF to NDDVA and Soldiers Home
  • HB 1012 $252,704 for the operation of the Soldiers (Veterans) Home
    • Plus $1,055,657 from the Vietnam Conflict Adjusted Compensation fund.
  • HB 1012 $357,980 for the operation of the ND Department of Veterans Affairs

• 1988 Measure No. 4 (Approved by Voters in 1988)

  The proposed initiative measure would establish the veterans' postwar trust fund as a permanent trust fund, transfer $3.7 million over five years from the state's general fund or other sources to the trust fund so as to approximate the fund's original balance in 1981, appropriate the income from the fund for programs to meet the needs of veterans and their dependents, and provide for the investment of the fund. 

  • Established the Postwar Trust Fund as a "permanent fund" in ND Century Code 37-14-14
  • Investment of the fund shall be the responsibility of the State Treasurer
  • Interest income from the fund would be appropriated on a continuing basis to the Administrative Committee on Veterans Affairs to be spent only for veterans' programs as authorized by law.
  • The balance of the fund would be restored to $3.7 million over 5 years
    • Transfer $740,000 in general funds each year for 5 years to the post war trust fund
    • 1989 SB 2009
      • Appropriated $1,480,000 in general funds to post war trust fund during 1989-1991 biennium
        • $740,000 transferred on July 1, 1989
        • $644,995 of the $740,000 was transferred on July 1, 1990
          • Budget reductions resulted in July 1990 transfer to be reduced by $95,005
      • Appropriated $274,000 of PWTF interest earning to the ND Veterans Home for operating expenses
    • 1991 SB 2001 Section 1 Treasurer
      • Appropriated $1,575,005 in general funds to post war trust fund during 1991-1993 biennium
        • Amount restored the $95,005 which was not transferred in 1989-1991 biennium
        • $835,005 transferred on July 1, 1991
        • $734,330 of the $740,000 was transferred on July 1, 1992
          • Governor budget allotments reduced amount by $5,670
    • 1993 HB 1001
      • Appropriated $745,670 from general fund to post war trust fund during 1993-1995 biennium
        • Included the $5,670 not included on July 1, 1992, transfer due to Governor ordered allotments
        • This was the final transfer required by Measure 4 (1988)
  • INITIATIVE PETITION

• 1996 Measure 4 (Approved by Voters) Established PWTF as permanent fund in article X of the ND Constitution

  The veterans' postwar trust fund shall be a permanent trust fund of the state of North Dakota and shall consist of moneys transferred or credited to the fund as authorized by legislative enactment. Investment of the fund shall be the responsibility of the state treasurer who shall have full authority to invest the fund only in the same manner as the state investment board is authorized to make investments. All income received from investments is to be utilized for programs which must be of benefit and service to veterans, who are defined by legislative enactment, or their dependents, and such income is hereby appropriated to the administrative committee on veterans' affairs on a continuing basis for expenditure upon those programs selected at the discretion of the administrative committee on veterans' affairs.

  2011 HB 1468 62nd Legislative assembly. At request of Commissioner and ACOVA $210,000 was appropriated for NDDVA to utilized in lieu of PWTF interest earnings during the 2011-2013 biennium. PWTF spendable income earned during 2011-2013 would be available to ACOVA during the 2013-2015 biennium. NDCC 37-14-14 was amended so future income earned in a biennium to be appropriated to ACOVA in the following biennium.  (Previously spendable income was distributed as it was earned making budgeting difficult).

   

Receipts and Expenditures: