Right on, that's what it should be used for then. Not sent out in checks to every resident across the board. I wish Alaska followed that model and used our oil fund to pay for schools and eliminate property and other taxes.
The Legacy fund is primarily money taken from a select group of North Dakotans. That has never been a good way to fund anything. Funding sources (taxes) need to be derived from a majority of the population, not a select few. Once you make them poor, they will eventually get to your segment of the population. And you will find yourself with just as many friends as those who currently contribute the majority of the money to the Legacy fund.