Historical society budget hearing spotlights $78.7M military gallery plan and local museum requests including Sergeant County plea

The Appropriations ' Education and Environment Division reviewed the State Historical Society budget long sheet, discussing one-time projects, grant programs, and the funding structure for a proposed military gallery expansion and related museum projects. The committee also took public testimony from the Sergeant County Historical Society about storm damage and a $200,000 repair request.

Committee staff told members the House version made a number of source-and-scope changes to the governor's recommendations. For the State Historical Society's military gallery expansion project the total shown on the long sheet is $78,700,000. In the House version that total was apportioned as $20,000,000 from SIF, up to $20,000,000 via a Bank of North Dakota line of credit and $38,700,000 expected as donations. A related line repays an earlier BND line-of-credit draw (authorized in a prior session) and the House included a repayment item of up to $4,200,000 for that previous credit authorization.

Department staff told the committee that having all or most of the military gallery funding rely on donations may be unrealistic and that they would prefer a funding mix that could include additional SIF or general-fund support. Staff reported the agency has drawn roughly $2.9 million to date on the previously authorized line of credit; projected interest through the end of the biennium was described as roughly $100,000, bringing near-term exposure to about $3.0 million unless additional draws occur.

Committee members and State Historical Society staff also discussed a $700,000 line for updating the museum's inspiration gallery, which the House structured as half SIF and half donations; plans include design work connected to the military gallery build and reinstallation of exhibits in freed space.

The House removed a larger proposal for several statewide historic-planning projects and instead reallocated money into several discrete historic restoration items in the House long sheet. Those added items included grant proposals for the Fargo theater (a multi-stage match discussed by members), the Ellendale Opera House, the Pembina State Museum, a movie-theater restoration in Marmot, Madora transportation/trolley assistance, and a $1,000,000 historic armory restoration for the Wilson armory. The committee discussed whether programmatic limits and matching requirements should accompany those additions; House language combined some concepts and removed earlier per-recipient caps, prompting committee questions about equitable distribution.

The committee asked about a specific statutory requirement for international projects: the International Peace Garden items on the long sheet remain subject to the bill's language requiring a Canadian match before disbursement. Staff confirmed matching language is included in section 7 of the bill.

Committee staff also walked members through a number of one-time and carryover line items for the historical society, including a federal Paul Bruhn historic-revitalization grant program, $3,000,000 listed for historic structures and buildings, $2,000,000 in SIF for the nation's 250th celebration activities, and existing federal and SIF items for archived-storage upgrades and exhibit rehabilitation.

Public testimony: The committee received testimony from Pat Olofson, treasurer of the Sergeant County Historical Society and manager of the Sergeant County Museum in Forman. Olofson described an April storm that collapsed Building 3 at the museum and caused other structural damage and roof leaks. She said the museum received only about 44% of replacement value from insurance and that county officials declined additional financial assistance. Olofson said volunteers and donations had allowed the society to reopen portions of the museum and to install a new exhibit (Keller/Melroe/Bobcat history), but that significant repairs remain, including replacing tin roofing, repairing skylights and concrete walkways, re-roofing and insulating a hallway, and installing heat in the new building. She asked the committee to consider a $200,000 appropriation to complete needed repairs and climate-control improvements.

Members asked whether county funds or other grants had been available; Olofson said they had applied to tourism and corporate grants but that most grants were aimed at for-profit entities or were not awarded. She listed recent private donations and in-kind work (including a $50,000 donor and a $10,000 donation from a corporate partner) and said the museum remains largely supported by a small local tax levy and suggested donations.

Ending: Committee members indicated they would consider the museum's request in the context of the historical society long sheet and asked staff to revisit matching requirements and prioritization language for the new House-added historic grants before final action.