House committee hears bill to create higher-education revolving loan fund for dorms, auxiliaries

BISMARCK, N.D. — The House Education Committee on Oct. 12 heard testimony on House Bill 1128, which would create a revolving loan fund to help North Dakota colleges and universities finance auxiliary facilities such as residence halls and dining services.

Supporters said the proposal copies the successful K–12 revolving loan model and would start with a $25 million appropriation. Representative David Richter, R‑District 1, said the K–12 program has saved districts “a $1,000,000, $1,000,000 and a half dollars in interest” on typical 20‑year bonds and argued a similar fund would reduce borrowing costs for higher‑education auxiliaries.

The bill would allow institutions to borrow from a centralized fund rather than issue commercial bonds for some projects. Dave Grubbsbach, vice chancellor for administrative affairs and chief financial officer at the North Dakota University System (NDUS) Office, told the committee…