Director Katamus outlines $514M carryover and funding implications for water projects

In a pivotal meeting of the Senate Appropriations - Education and Environment Division on April 7, 2025, North Dakota lawmakers addressed significant budgetary adjustments that will impact water resource funding and project timelines across the state. The discussions revealed a reduction of $93 million from the House's initial funding proposal, primarily due to a decline in revenue linked to the Stricker wealth, which is not expected to recover quickly.

The committee explored the use of a $150 million line of credit to manage cash flow for essential projects, including $50 million earmarked for the Southwest Water Treatment Plant. This financial strategy aims to ensure that necessary funds are available, although it is anticipated that the line of credit may not be fully utilized.

A substantial carryover of $514 million was highlighted, with concerns raised about the slow expenditure of these funds. For instance, the Southwest Water Treatment Plant has a carryover of approximately $94 million, with only a small portion spent on engineering costs so far. The committee noted that many projects are under contract but are not progressing as expected, leading to a backlog of unspent funds.

Other projects discussed included Valley City, which is seeking additional funding despite having a significant carryover, and the Service River flood control initiative, which has a carryover exceeding $104 million against an appropriation of $76 million from the previous biennium. The committee acknowledged the need for better oversight and management of these funds to prevent accumulation without corresponding project completion.

As the meeting concluded, it was clear that the Senate is grappling with the challenge of balancing budgetary constraints while ensuring that critical water infrastructure projects move forward. The discussions will continue as the committee prepares for a conference to reassess the budget and explore alternative funding options. The outcomes of these deliberations will be crucial for the future of water resource management in North Dakota.