Committee advances constitutional measure to divert Common Schools Trust Fund dollars for school construction; opponents warn of long‑term losses

House Education Committee Chairman Heinert moved the meeting onto House Concurrent Resolution 3035, a proposed constitutional amendment to authorize a dedicated draw from the Common Schools Trust Fund for school construction.

Representative Eric Murphy (District 43, Grand Forks), the bill sponsor, told the committee the proposal would put a constitutional amendment on the 2026 ballot allowing voters to decide whether to authorize additional withdrawals from the Common Schools Trust Fund for school construction. "We can either get ahead of the problem or we wait until the courts tell us there's a problem that we already recognize," Murphy told the committee, referring to perceived inequities between rural and urban districts.

Murphy said the concurrent resolution would authorize roughly $300 million a year beginning in 2028 under one scenario and described the proposal as an alternative funding strategy after a related bill (16‑04) failed this session. He warned the change would reduce the fund's regular distribution and asked members for a green vote.

Several witnesses and organizations testified in opposition. Joseph Herringer, Commissioner of the Department of Trust Lands, told the committee the amendment would mandate $3,000,000,000 in withdrawals from the perpetual trusts over 10 years and, based on the department's modeling, would reduce the fund balance by roughly $5,700,000,000 over 30 years. He said the change would reduce cumulative distributions and cautioned committee members that the proposal could conflict with Article 9, Section 2, Paragraph 1 of the North Dakota Constitution, which he said prevents diverting trust funds away from the benefit of all common schools. "This constitutional amendment will mandate $3,000,000,000 from the perpetual trust over 10 years," Herringer said, and added the department projects lower long‑term earnings and distributions as a result.

Representatives from the North Dakota Council of Educational Leaders and North Dakota Small Organized Schools also opposed the measure, saying the Common Schools Trust Fund exists to support the per‑pupil payment and that diverting principal for construction would shrink the fund's future distributions and increase future reliance on other revenue sources. The council's representative noted prior attorney general opinions concluding the trust fund, as currently constituted, may not be used for school construction without a constitutional change.

Committee debate reflected the split: some members said they were uneasy about tapping a perpetual trust, its constitutional implications and the lack of an implementing statute if voters approved a constitutional amendment; others said school facilities are urgent in parts of the state and the fund is available for the public benefit. Representative Novak said she was "torn" but worried about negative impacts to the per‑pupil payment; Representative Jonas urged action to address failing facilities.

After discussion Representative Hoke moved a "do pass" and referral to the Appropriations Committee; Representative Morton seconded. The committee recorded a roll‑call vote: yes — Representatives Conmey, Hager, Haddleston, Hauck, Jonas, Mackey, Marshall, Morton and Novak (9); no — Chairman Heinert, Vice Chair Schreiberbeck, Heilman, Longmire and Osovski (5). The motion passed 9‑5. Representative Hoke agreed to carry the measure to Appropriations.

The committee closed the hearing after testimony and debate and sent HCR 3035 to the next step in the process for further review.