The issue of property tax valuations is a familiar one to most people in North Dakota. I came across this article about the situation in Michigan through a tweet. It is about a month old but it raises some interesting questions. The focus of the debate in North Dakota, as far as I ever heard, has been property taxes paid by individual homeowners. In Michigan businesses are challenging valuations, winning, and the local areas are dealing with revenue shortfalls as a result.
More Pension Discussion
This is something of a followup to the discussions from the radio last week. I did some looking at the “Comprehensive Annual Financial Report” from the North Dakota Retirement and Investment Office to see what I could find related to the position of the pensions in North Dakota. For those not aware, pensions are a huge issue across the country these days. They came under fire in the case of Detroit; unfairly blamed in my opinion for the eventual bankruptcy of the city. Recently the Illinois Supreme Court ruled that the state constitution prevented a renegotiation of the retirement benefits. We will see how that proceeds as Illinois is in a dire fiscal situation.
Summer Plans: Teaching Population & Pensions
With the semester drawing to a close and the summer session getting ready to start soon my thoughts turned towards population issues. (I teach a population analysis class in the summer for the graduate students.) One of topic coming up in that class on a regular basis is pensions, particularly the math behind pensions. I thought a little post about the issues surrounding defined benefit pensions in order. JT also asked about alternative uses of the $3 billion available in the legacy fund when it becomes available in the future. So let’s start with this issue.
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Projecting North Dakota Oil Prices
So I told my forecasting students I would post what I taught them today. I project monthly ND oil prices forward to the end of 2016. The following graph is the result of this process.
What’s that in the sky?
JT and I talked about the issue of economic development in Grand Forks on the Jarrod Thomas Show today. Let me preface my remarks with a recognition that economic development is a difficult process, whether we are talking about managing it, reacting to it, hoping for it, or whatever. Development can inherently alter relationships in an economy, and in unpredictable ways. (Note I am not advocating management of economic developing because I think that often creates its own issues but we can discuss that later.)