Appropriations panel advances tax and education budgets, rejects large school-construction plan

The House Appropriations Committee on Thursday approved operating budgets for the tax commissioner and the Department of Public Instruction, expanded a disabled-veterans property tax credit and declined to advance a large, state-funded school-construction plan.

The committee voted to give a “do not pass” recommendation to House Bill 16‑04, a bill that would have created a $600 million, 10‑year grant program for school construction tied to a proposed concurrent constitutional amendment and additional distributions from the Common Schools Trust Fund. Committee members instead advanced a package of other education and tax measures, including House Bill 11‑29 (a study and task force on chronic absenteeism), House Bill 12‑66 (an increase to the disabled-veteran property tax credit), House Bill 01‑2006 (the tax commissioner budget) and House Bill 10‑13 (the K‑12 budget as amended).

Why it matters: The school-construction proposal generated the longest debate of the morning because it would have tapped the Common Schools Trust Fund for long-term distributions tied to a voter-approved constitutional change. Supporters called the plan a way to standardize and lower construction costs while sending steady funds to districts; critics warned it would open the trust fund to ongoing withdrawals and risk long-term stability of distributions for K‑12 aid.

Committee action and key details

House Bill 11‑29 — absenteeism study: Representative Mitscog, sponsor, explained that an amendment adopted in another bill creates a working group composed of the Department of Human Services, Department of Public Instruction, legislative members and other stakeholders to study truancy and chronic absenteeism and report to Legislative Management and the Children’s Cabinet. Representative Steeman moved a “do not pass” recommendation; Representative Murphy seconded. The committee approved the do-not-pass motion by roll call (22 yes, 0 no, 1 absent). Representative Mitscog asked that a committee member carry the bill to the floor; Representative Steeman agreed to carry it.

House Bill 16‑04 — school construction financing: Representative Murphy described an amended approach that would initially appropriate $200,000 to stand up a program (instead of an immediate $600 million distribution) and included a concurrent resolution to amend Article IX of the North Dakota Constitution to authorize supplemental distributions from the Common Schools Trust Fund if voters approve in 2026. The sponsor presented modeling of projected fund balances and long-term costs. Committee staff noted the fiscal modelling assumed a long‑term interest/return assumption and used the fund’s five‑year average balance to compute distributions.

An amendment (5,001) that would have altered timing and funding in the bill failed on a roll call (5 yes, 17 no, 1 absent). After debate about preserving the trust fund and concerns that creating a large recurring…