Townships seek sustainable funding for road maintenance amid oil boom challenges

January 17, 2025 | Transportation, Senate, Legislative, North Dakota


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Townships seek sustainable funding for road maintenance amid oil boom challenges
The North Dakota Senate Transportation Committee meeting on January 17, 2025, spotlighted the pressing issue of road maintenance funding for townships, particularly in light of the ongoing oil boom. Townships are grappling with limited self-funding capabilities, as their property tax levy is capped at 18 mills, with a potential temporary increase to 36 mills through special elections. However, the anticipated introduction of property tax caps could further complicate their financial situation.

Committee members discussed the varying conditions of certified maintained roads, noting that some require more intensive maintenance due to heavy usage, while others are less impacted. The cost of maintaining these roads is significant, especially for those that serve as local corridors for the state's transportation system. The need for reconstruction and proper compaction on heavily trafficked routes was emphasized, with costs expected to soar.

To address these challenges, the legislature has previously provided one-time grants to assist townships, which have been appreciated but are not a sustainable solution. In response, two funds have been established to offer more consistent support: the County and Township Infrastructure Fund, known as the "prairie dog," and a fund sourced from legacy earnings. These initiatives aim to provide townships with the necessary resources to overcome years of underfunding and ensure the maintenance of vital roadways.

As discussions continue, townships remain hopeful for a more predictable funding model that will allow them to effectively manage their road infrastructure needs.

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