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Committee examines Development Fund and LIFT finance tools; staff to deliver transaction ledgers
Summary
Members pressed staff on the North Dakota Development Fund and the LIFT (Legacy Investment for Technology) fund: how revolving and continuing appropriations work, recent infusions and how the funds are being used for large-scale projects, childcare loans and project investments.
Committee members spent substantial time on the state's revolving economic development tools: the North Dakota Development Fund and the LIFT fund. Levi and Rich explained the funds' mechanics: both are revolving funds with continuing appropriation authority in statute, so agencies can spend fund balances under statutory authority; however, when the fund balance is insufficient to cover new commitments, the Legislature must authorize transfers into the fund (often in transfer sections later in the bill rather than in section 1).
Rich described why the development fund has attracted renewed transfer requests: projects are larger and inflation has raised costs for major processing and value-added projects. He cited a pending large ag processing project in Grand Forks that could require a multimillion-dollar (roughly $10,000,000 was mentioned as an illustrative closing-fund request) investment from the development fund to close the deal.
Staff explained the development fund is not a grant program but a market-rate loan or equity-investment vehicle; it can also offer lower-interest loans for targeted purposes. Committee members asked about childcare loans administered through the development fund: Rich said about 19 loans totaling roughly $6,000,000 were made in the last biennium and those loans created approximately 1,100 childcare slots; the interest rate on those childcare loans was stated in the hearing at 2.5 percent.
On LIFT, staff reported cumulative awards "just under $45,000,000" across about 71 projects since inception; sector concentrations included healthcare (about $13.1 million), advanced computing (about $10 million), agtech (about $8.5 million) and UAS (about $5 million). Biennial award totals over recent cycles were reported in the hearing and staff told the committee the fund is revolving but still early in its repayment cycle.
Committee members requested a written ledger showing deposits, disbursements, current balances, outstanding commitments and default history for both funds; Rich and Levi agreed to deliver those reports before further appropriation action.
Ending: Staff committed to providing a transaction-level ledger for the Development Fund and the LIFT fund, including recent project lists and default/repayment history, and to report back this afternoon if possible.
