Treasurer backs higher reporting threshold for municipal ‘Prairie Dog’ grants; League of Cities supports change

State Treasurer Thomas Beadle told the Senate Finance and Tax Committee that Senate Bill 2074 would raise the population threshold for reporting on municipal infrastructure grants to cities with 1,000 or more residents, removing the reporting requirement for many very small cities that receive modest Prairie Dog grant amounts.

Beadle described the Municipal Infrastructure Fund—commonly called Operation Prairie Dog—as a distribution that sent $115 million in the 2021–23 biennium to 315 cities in non‑oil-producing counties. He said 76% of the dollars went to the 10 largest recipient cities, leaving many small cities with only a few hundred or a few thousand dollars to account for. Beadle told the committee his office spent “an extraordinary amount of staff time” tracking down city contacts to collect the statutorily required reports; 12 cities missed the filing deadline and would be barred from the next distribution under current law.

Stephanie Dasinger Ingebretsen of the North Dakota League of Cities said many small city auditors are part‑time or volunteer positions with high turnover; she and the treasurer’s office said the reporting requirement imposes a greater burden on those jurisdictions. Supporters said raising the threshold to 1,000 population would align cities with townships (which do not have the same reporting requirement) and reduce paperwork while leaving other accountability mechanisms—annual reports filed with the State Auditor, normal budget and audit processes—intact.

Opponents and some committee members pressed for accountability. Senator Michelle Powers said she supports reporting for even very small entities to preserve a clear paper trail; Beadle and Dasinger responded that other audits and State Auditor filings provide oversight and that the state’s administrative resources were better focused on larger recipients. The treasurer’s office showed the committee a list of small awards—examples cited included amounts under $1,000 for some cities— and said many recipients carried funds forward until they had enough to complete a project.

Senator Whelan moved a “do pass” recommendation on SB 2074; the motion was seconded. The committee recorded a roll‑call vote in favor and recommended the bill to the floor. Committee members asked the treasurer to supply the detailed report spreadsheet and said the body would continue to weigh accountability and administrative cost concerns as the bill moves forward.