The Senate Appropriations Committee of the North Dakota Legislature convened on April 11, 2025, to discuss significant water supply projects and budget allocations for the upcoming biennium. The meeting focused on the governance and funding of three major water supply initiatives, including the Red River water supply project, which the state does not own, and the Southwest project, which has been under review multiple times.

The committee addressed the need for a comprehensive study on these projects, emphasizing the importance of hiring an independent contractor without ties to any regional water systems to ensure unbiased analysis. A draft report on this study is required by March 31, 2026, to facilitate further discussions and potential adjustments.

Budgetary discussions revealed a proposed line item transfer of $5 million for the Department of Water Resources, a reduction from the House's recommendation of $10 million. The committee also reviewed the anticipated carryover of $600 million for the biennium, with approximately $40 million identified as unobligated funds, primarily in flood control.

Concerns were raised regarding the large carryover amount, with committee members questioning the reasons behind it. The director of administration for the Department of Water Resources, Chris Katamus, explained that the carryover results from the state appropriating more funds than can be absorbed by ongoing projects, which often span multiple years. He noted that while projects are obligated, they may not be completed within the same biennium, leading to significant carryover.

The committee discussed the challenges of securing bids for construction projects, citing a limited number of qualified contractors available to undertake the work. This has resulted in instances where projects receive only one bid, complicating the procurement process.

In conclusion, the meeting underscored the complexities of managing large-scale water projects in North Dakota, highlighting the need for careful planning and oversight to ensure that allocated funds are effectively utilized. The committee plans to continue its discussions and will seek further clarification on the status of various projects and their associated budgets in future meetings.