The North Dakota House Appropriations Committee convened on March 20, 2025, to discuss a significant resolution proposing a constitutional measure aimed at allocating $3 billion over ten years for a School Construction Program. This funding would be sourced from the state's perpetual trust funds, as outlined in Article 9 of the North Dakota Constitution.

The resolution seeks to divert $300 million annually from various trust funds, including those for colleges, schools for the blind and deaf, state hospitals, industrial schools, and veterans' homes. The committee noted that this diversion could lead to a projected reduction of $4.4 billion in future distributions over the next 30 years, significantly impacting the balance of the perpetual trust funds by over $5.7 billion.

During the meeting, committee members raised concerns regarding the lack of established mechanics for determining which schools would benefit from the funding. Representative Bosch questioned the selection process for schools, to which Chairman Heiner responded that no specific criteria had been set, as a related bill had previously been killed in committee. This raised further concerns about whether the funding would equitably benefit all public schools, as some members noted that only certain schools might receive assistance.

The committee also clarified that the funding would be provided as grants rather than loans, although there was confusion regarding the nature of the program. Representative Richter inquired about the rationale behind the $3 billion figure, but Chairman Heiner admitted that no comprehensive assessment of school needs had been conducted to justify this amount.

Concerns were voiced about the potential long-term effects on the Common Schools Trust Fund, with projections indicating that the fund's distributions could be reduced by approximately $4.4 billion over 30 years. Joseph Herringer, the Commissioner of University and School Lands, testified against the resolution, emphasizing the detrimental impact it could have on the trust fund's health and the overall funding for schools.

The committee concluded the meeting without a definitive resolution, as members continued to express apprehension about the implications of the proposed funding diversion and the absence of a clear distribution mechanism. Further discussions and evaluations are anticipated as the legislative process unfolds.