Appropriations subcommittee outlines $78.7M military gallery plan in State Historical Society budget; state share split between SIF and BND line of credit

Bismarck — Members of the House Appropriations — Education & Environment Division on Feb. 18 reviewed updates to the State Historical Society budget in House Bill 1018, focusing on a proposed $78.7 million expansion of the military gallery that pairs a $40,000,000 state contribution with $38,700,000 in expected private donations.

Why it matters: The military gallery expansion is the largest single change in the Historical Society long sheet and would draw substantial state investment, requiring decisions about financing that include SIF (State Investment Fund) resources and a Bank of North Dakota line of credit.

Representative Karla Rose Hansen, who presented the updated long sheet, described the three-part financial plan for the military gallery: “The total is $78,700,000. Of this, $40,000,000 will come from the state and $38.7 will come from donations,” she said. Hansen and staff explained the State portion would be split into $20,000,000 from SIF and $20,000,000 secured as a line of credit from the Bank of North Dakota.

Hansen and staff outlined a construction timeline supplied by the project architects: ground-breaking in July 2025, construction completion in November 2027, and final payments extending into the first quarter of 2028. The committee noted the Senate could choose a different financing strategy (bonding) and that the House plan could be revisited when both chambers reconcile budgets.

Staff reported that about $4,200,000 already needs repayment to the Bank of North Dakota for architect fees and exhibit planning; the long sheet includes a provision to repay that amount from SIF. The committee also retained a $700,000 exhibit refresh line for the State Museum, changing the funding mix so $250,000 would come from SIF and $250,000 from donations rather than relying fully on donations.

Representative Hansen also reviewed smaller historic‑preservation pass-throughs and one‑time grants appearing on the long sheet. The House version includes funding requests such as:

- $250,000 — Ellendale Opera House historic storefront/renovation work - $250,000 — Historic movie theater (Mystic Theater / Marmarth Historical Society) roof and exterior repairs - $200,000 — Sargent County Historical Society museum repairs after a building collapse - $100,000 — Williston Old Armory step repairs (a $350,000 project)

Representative Martinson proposed offsetting those three new pass-through grants by reducing the Madora area planning appropriation by $550,000 (moving funds that were previously shown at about $4.1 million in SIF). Levi (appropriations staff) clarified that the committee had previously placed a placeholder for the Mandora planning funds in SIF and asked whether the new projects should be funded from SIF as well; members agreed to keep the adjustments consistent with SIF funding. Committee members agreed to proceed with the reallocation.

What’s next: The Historical Society long sheet will be revised to reflect the funding-source split for the military gallery and the new one-time pass-throughs; representatives said the Senate side may alter financing (bonding vs. line of credit) and private fundraising progress will affect final plans. Committee staff asked for the final amendments and statements of purpose in the coming days so the items can move to full Appropriations.