Committee debates limits on administrative spending as lawmakers seek $25 million for Ag Diversification Fund

The Appropriations - Government Operations Division on Feb. 3 considered Senate Bill 2,327, a bill to reauthorize and appropriate funds for the Ag Diversification and Development Fund and to clarify how administrative expenses may be reimbursed. Committee members and industry representatives discussed an amendment that would remove a flat 5% administrative set-aside and instead limit reimbursements to the extent administrative costs do not exceed the most recent APUC administrative expenses.

Why it matters: The Ag Diversification and Development Fund provides grants and interest-rate buy-downs for value-added agriculture projects across North Dakota. Supporters told the committee the program leverages private investment and helps rural economies, while some committee members raised questions about the scope of "administrative expenses."

Committee discussion and amendment

Chairman Wanzek opened discussion of Senate Bill 2,327 and introduced an amendment that removes language allowing up to 5% of the fund to be used for administration…