Committee hears $24 million request to fund workforce education innovation; higher‑ed leaders urge competitive grants

The Appropriations — Education and Environment Division heard testimony on House Bill 1221, which would appropriate $24 million from state general funds to the State Board of Higher Education to create a Workforce Education Innovation Fund. Representative Heiner, the bill sponsor, told the committee the funding would support program design, equipment purchases, curriculum development and distribution across the university system, and that higher education officials estimate the fund could help serve up to 60,000 people through credits and credentials.

Proponents described the fund as seed money to help institutions pilot programs that are not yet revenue‑generating. Representative Cynthia Shriverbeck (bill backer) said the policy enacted in 2023 (House Bill 1241) authorized the Workforce Education Innovation Program but did not provide funding; HB1221 is intended to fund that policy. She described the fund as competitive grants to build programs — for example, the airframe and powerplant (A&P) aviation maintenance program at North Dakota State College of Science — where upfront costs and curriculum development precede any credit‑based reimbursement through the funding formula.

College and university leaders testified in favor. Rod Flanagan, president of North Dakota State College of Science, said his school received an FAA grant to begin aviation maintenance work but needs state seed funding to make the program fully operational, citing equipment and instructor shortages and slow grant timelines. Andy Armacost, president of the University of North Dakota, told the committee an innovation pool would let institutions respond quickly to workforce needs and could especially help smaller schools that lack the endowments or reserves of larger universities. Acting Dickinson State University president Ty Orton and Lake Region State College president Doug Darling also supported the concept, saying start‑up costs for new programs (faculty recruitment, specialized equipment, curriculum design) must be covered before student credits generate formula revenue.

Supporters emphasized competitive administration and peer review. Several lawmakers pressed for guardrails to avoid duplication of existing programs and to direct funds toward programs that meet demonstrable workforce needs. Chancellor Mark Hagerott and board and system representatives said some peer institutions and states have used similar innovation funds (University of Michigan and South Dakota examples were cited), and the board has mechanisms — including system review and board approval — to vet new programs and limit unnecessary duplication.

Lawmakers asked whether funding should be restricted to specific workforce sectors (health care, advanced manufacturing, AI/technology) or left open; witnesses and several representatives suggested both approaches have tradeoffs. Representative Richter said focused direction might strengthen legislative oversight; others urged flexibility to respond to regional demands. The committee did not take a vote on HB1221 and asked staff and higher‑ed officials to consider language that clarifies selection criteria and distribution mechanics if the bill advances.

Provenance: hearing began when the clerk read House Bill 1221 and continued through testimony from legislators, college presidents, the university chancellor and higher education system representatives. Ending: Committee left the hearing open for further drafting and encouraged sponsors and system staff to work on selection criteria and distribution language for potential amendments.