Regional councils urge larger state appropriation for HB 1524 to boost rural project capacity

At a hearing of the Senate Industry and Business Committee, municipal and regional leaders urged lawmakers to increase the state appropriation in House Bill 1524 so regional planning councils can hire staff and expand capacity to deliver housing, childcare, workforce and infrastructure projects across North Dakota.

Representative Dave Munson, who introduced the bill, told the committee the measure was originally drafted as an $8 million appropriation to be split among the state's eight regional planning councils but the House reduced that amount to $2.4 million after earlier proposals that would have cut funding to $1 million. "My intention is not to change a whole lot as far as the makeup," Munson said, describing the bill as meant to support councils that already perform regional planning and project development.

Supporters said the money would be used primarily for operations and hiring dedicated staff to convert planning and grant awards into completed projects. "Funding alone isn't going to get the job done. It's going to take someone to put those pieces together," said Taryn Doerr of Roosevelt Custer Regional Council. Several witnesses later described hiring project developers, housing developers and grant-writing staff as the most immediate uses of any appropriation.

Witnesses provided examples of projects they said regional councils have helped develop or deliver. Dawn Mound of the Red River Regional Council summarized an impact report covering 2019–2023, saying the councils assisted in securing $365,000,000 in funds that leveraged another $532,000,000 for a combined investment approaching $900,000,000 and resulting in roughly 5,100 new or retained jobs. Mound also described an ongoing Walsh County childcare project that used a mix of RWIP funds and 12 other sources toward a $1.4 million turnkey facility.

Several witnesses described pandemic-era federal assistance to councils: temporary EDA planning grants of about $200,000 per year for two years to increase staff capacity and awards of roughly $1.2 million per region to establish revolving loan funds for businesses. Testimony from council staff emphasized that many current revenue streams are project-specific grants or local matches and do not cover the stable, ongoing staffing needed for project development and implementation.

Jennifer Henderson of the North Dakota Housing Finance Agency described the role a local nonprofit developer plays in rural housing: conducting housing studies, assembling financing, securing contractors and marketing finished units. Henderson said the agency has seen few successful multifamily applications from communities under 20,000 population because local developers are often unavailable to assemble those complex financing packages. She cited an example where building a handful of homes in a small town can produce ripple effects that open housing for younger families.

Multiple agricultural and business associations — including the North Dakota Soybean Growers Association, North Dakota Farmers Union and North Dakota Corn Growers Association — testified in support, saying the health of rural communities is essential to agriculture and regional economies. Local partners including electric cooperatives, chambers of commerce and the League of Cities also expressed support for predictable state funding to make federal and private grants more effective at the local level.

Supporters asked the Senate to restore or increase the appropriation above the $2.4 million approved by the House and suggested a minimum of $4 million. They said the funding would typically be administered by the Department of Commerce and distributed by region, sometimes competitively, and used to hire staff who can leverage federal grants and private funding. Committee members asked how the funding would be divided, how councils would ensure sustainability, and whether the appropriation would be recurring. Witnesses said the councils would seek to multiply state dollars with federal, local and private funding and that sustained support would be most effective to address long-term capacity needs.

The hearing record shows no committee vote on HB 1524 during the session. Committee members requested operating budget summaries and a fiscal note to better estimate ongoing operational needs for each region. The chair closed the hearing on House Bill 1524 without a recorded committee action.