Since 1993, North Dakota has lost $1 billion in net taxable income as a direct result of migration. From 1993 through 2006, people moving to North Dakota brought with them $6.1 billion in taxable income, while people moving out of the state took with them $7.1 billion.

This month's ""Economic Brief,"" a monthly publication from the North Dakota State Data Center at North Dakota State University, focuses on the analysis of federal individual income tax returns from the past 14 years. These records reveal that North Dakota has experienced a continued loss of taxable income as a direct result of migration.

As North Dakota residents continue to leave the state, the economic consequences continue to add up. Millions of dollars in consumer spending and tax revenue are lost each year as a result of migration.

From 1993 through 2006, Grand Forks showed the largest loss in taxable income due to migration with a net outflow of $274 million. Much of this loss can be attributed to the devastation caused by the 1997 flood and a missile wing closure at the Grand Forks Air Force Base. Ward County, also home to an Air Force base, had the second largest net outflow at $175 million.

Three counties in the state experienced a net gain in taxable income due to migration during the past 14 years. Burleigh County had a net increase of $20 million in taxable income due to migration, Morton County had a $9 million increase and Bottineau County had a net increase of $5 million.

""We need to keep in mind that the IRS data have important limitations, such as the need to match returns between years and misreporting due to address changes,"" says Richard Rathge, State Data Center director. ""Nonetheless, these data offer us one of the few ways we can document the economic consequences of migration."

The economic impact of migration can be significant, even in areas that have a net increase in tax filers or net in-migration. During the past 14 years, Cass County, the state's largest population center, had a net growth of 5,992 tax filers. However, those tax filers leaving the county had higher incomes than those arriving. Therefore, even though Cass County gained tax filers, it lost $72 million in taxable income during that period due to migration.

For information on methodology and limitations of these data, along with further discussion and additional tables, visit http://www.ndsu.edu/sdc/publications/research.htm#migration.

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NDSU Agriculture Communication

Source: Richard Rathge, (701) 231-7980, richard.rathge@ndsu.edu Editor: Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu