Senate committee hears repeal proposal for UND medical‑school mill levy; action postponed

The North Dakota Senate Finance and Taxation Committee heard testimony on Senate Concurrent Resolution 4023, which would place a constitutional repeal of Section 10 of Article X — the statewide one‑mill property tax that funds the University of North Dakota School of Medicine and Health Sciences — on the general election ballot. Senator Larry Lueg introduced the measure and answered committee questions but the panel did not take action and postponed further consideration.

The resolution, Lueg said, would send repeal of Article X, Section 10 to the 2026 general election because changing property‑tax methods in the state has made the mill levy an “unreliable” funding source. “So that's what this resolution is all about,” Lueg told members, adding his intent was not to shortchange the university but to put the funding mechanism under review as the state updates property‑tax policy.

UND officials and health‑care groups urged the committee to reject the move unless an alternative funding source is secured. Marjorie Jenkins, dean of the School of Medicine and Health Sciences and vice president for health affairs at the University of North Dakota, told the committee that if voters repeal the mill the school “would lose more than 14,700,000.0 in the next biennial funding. This is approximately 5% of its operating budget.” She described the levy as the only statewide mill and said the amount “actually calculates out for this biennium to 64¢ per North Dakotan per month.”

Andy Armacost, president of the University of North Dakota, said the mill levy has been “a steady and reliable source of funding” and reiterated the university’s request that any repeal include a plan to replace the revenue: “I would urge that provision, this provision to go forward only if there's consideration or perhaps even a commitment to offset the loss of this funding using other appropriations,” he said, adding that the reduction would be “a $14,700,000 cut to the bottom line of the school.”

Former UND vice president for health affairs and past dean Joshua Wynne testified he shared the university’s primary concern: the resolution proposes no secured alternative funding. “My major concern is that the alternate funding has not been clarified and secured,” Wynne told the committee, arguing that prior efforts stalled when replacement funding was not specified.

Donna Thronson of the North Dakota Medical Association echoed UND leaders, saying the association opposes repeal because it would jeopardize the school absent a replacement revenue stream.

Committee members asked UND officials for funding detail. Dean Jenkins provided approximate budget breakdowns: she said federal grants and contracts account for about 18 percent of the school’s funding (sponsored funding about $32 million), alumni philanthropy is under 2 percent, the one‑mill levy is about 5 percent, roughly one‑third of the school’s funding is state appropriations, and tuition revenue is about $40 million per year. Jenkins also said the medical school has about 300 medical students, over 550 health‑sciences students and extensive statewide training operations, including two family‑medicine clinics and a mobile “simulation in motion” training program used in rural areas.

Senator Lueg and several committee members discussed the levy’s history; Lueg said the 1‑mill provision dates to 1948 and that a 1980 ballot attempt to repeal it failed by a narrow margin. Chairwoman Weber (chair of the Finance and Taxation Committee) said members needed time to digest testimony and would not act immediately: the committee closed the hearing and “laid it for a bit,” postponing any vote or recommendation.

The hearing record shows no committee vote on SCR 4023. The committee chair said staff and members may follow up with additional questions before deciding whether to advance the resolution to the full Senate or recommend placement on the ballot.