Appropriations panel trims supplemental state grant funding, advances Senate Bill 2147 as amended

The Appropriations — Education and Environment Division on Friday amended and approved Senate Bill 2147, a measure that would establish a supplemental state grant program tied to a household income cutoff and a tuition-gap payment for eligible students. The committee voted to reduce the initial appropriation in the bill from $12,200,000 to $2,000,000 and then voted to advance the amended bill to full appropriations.

Committee members focused discussion on an $80,000 household income cutoff embedded in the bill and on how awards would be administered if demand outstrips the available funds. Brenda Zaspel, representing the North Dakota University System, told the panel the $80,000 figure was a committee-derived number and that the system could re-run eligibility using FAFSA data if the dollar threshold were changed. "The 80,000 tells us which students to include," Zaspel said, adding that the program would still calculate each student's award as the tuition gap for those included in the income pool.

Members discussed using the pilot as a proof of concept. Representative Richter said keeping the $80,000 cutoff "increases the pool and so more kids would get at least something." Committee leadership suggested treating the initial appropriation as a pilot and returning next session with data to expand the program if it met expectations.

The committee approved a motion to change the funding amount in the bill from $12,200,000 to $2,000,000. The roll call on that amendment recorded a 4-1 vote; the transcript shows: "Chairman Nathan. Yes. Vice chair of Swantek. Representative Henson. No. Lowser. Yes. Martinson. Yes." The motion to adopt the amended bill and forward it to the full appropriations committee then passed on a 5-0 roll call; the transcript records the final tally as "Motion passes five-zero."

Committee members and staff also discussed implementation language drafted into the bill to handle situations where applications exceed available funds. Brenda Zaspel described a deadline-based application window and a pro rata reduction if total requested awards exceed the appropriation: "If we have more students than the pool of funds, we'd have to reduce it ... maybe by a percentage, you get 80% of your gap in tuition or whatever it might be to utilize the pool of money we have." That built-in mechanism would ensure all eligible applicants received a reduced award rather than closing the application window if demand were high.

Representative Hansen and other members praised related improvements to existing programs, such as the Career Builders framework, and emphasized that the supplemental grant program was designed to complement, not replace, other financial-aid efforts.

The committee chair said staff would return the amended SB 2147 to full appropriations for consideration with the reduced initial appropriation. The bill moves forward as amended; additional fiscal details will be fleshed out in the full committee process.

Ending: The committee took up the SB 2147 amendment early in the morning to meet scheduling needs and completed the vote before moving on to other agenda items. Committee members asked staff to return data and fiscal adjustments as the bill proceeds to full appropriations.