North Dakota Senate cuts $266M from budget impacting water and flood control projects

The North Dakota Senate Appropriations Committee convened on April 11, 2025, to discuss significant budget reductions and adjustments for the upcoming biennium. The meeting highlighted a projected shortfall of over $100 million, primarily due to the stripper well exemption from extraction tax, which accounts for 76% of the budgetary changes.

Committee members emphasized the need for careful financial planning, noting that the current budget constraints could impact future sessions. A substantial reduction of $262 million in project spending was approved, affecting various departments and initiatives across the state. The committee also cut $50 million from lines of credit and eliminated $100 million in bonding previously allocated by the House.

Key areas of budget cuts included the Devil's Lake Outlet Utilities, which saw a reduction of $600,000, and the Water Department's travel and professional services budget, which was entirely removed. The committee also adjusted funding for several water supply projects, including a $110 million cut from the Red River Water Supply project, bringing its funding down to $150 million.

The committee faced challenges in balancing the budget while addressing pressing needs, such as flood control projects in Minot and Valley City. While the House had proposed $20 million for Bismarck's stormwater flood control project, the committee opted to remove this funding, citing concerns over setting a precedent for future funding requests from other cities.

In conclusion, the Senate Appropriations Committee's decisions reflect a cautious approach to budgeting amid significant financial constraints. The committee aims to ensure that essential services and projects are funded while navigating the challenges posed by reduced revenue and increased demand for resources. Further discussions and adjustments are expected as the biennium progresses.