Appropriations panel trims infrastructure loan infusion for jail projects; committee votes to recommend ‘do not pass’

The Senate Appropriations Committee on the afternoon docket approved an amendment that reduces a proposed transfer to the Infrastructure Revolving Loan Fund and then voted to recommend a do-not-pass on the amended House Bill 12/13.

The committee adopted Amendment 25.0626.03003, which removed new qualifying language for “critical political subdivision buildings and infrastructure, including correctional facilities,” and changed a planned transfer from the Strategic Investment Improvements Fund to the Infrastructure Revolving Loan Fund from $50,000,000 to $20,000,000. The amendment passed on a recorded vote of 15–0–1.

Why it matters: the change narrows the dollar infusion lawmakers would send to the lending pool used by local governments for infrastructure projects and clarifies that certain jail projects already qualify for loans under existing categories.

Levi, a fiscal staff member who presented the committee’s analysis of major special funds, told the committee the Bank of North Dakota reports about $14,000,000 currently available in the Infrastructure Revolving Loan Fund and scheduled repayments of roughly $30,000,000 in the 2025–27 biennium, producing an estimated $44,000,000 available next biennium before any additional appropriation. “This 20,000,000 appropriation if it passes this committee with a recommendation do pass and passes the floor would get about another $20,000,000 … so that would be 64,000,000 in the infrastructure revolving loan fund,” Levi said, adding the bank also “has authority to increase access to the legacy fund of another $50,000,000 if they need it.”

Committee debate centered on whether the infusion and the loan program should back jail construction projects whose repayment plans rely on future revenue tied to state inmates. “I’m concerned about … the jail projects talked in terms of their cash flow depending on state inmates,” said Senator Dever, noting uncertainty about future state inmate populations and asking how heavily the Bank of North Dakota would weigh speculative revenue when underwriting loans. Committee members were told the bank requires jurisdictions to demonstrate a viable revenue source for repayment and will scrutinize speculative projections.

After discussion, Senator Davison offered a do-not-pass motion on the amended bill. The committee approved the do-not-pass recommendation, 11–5, with the chair confirming the motion carried. Committee members acknowledged the fund’s current balances and repayment schedule and noted that the Bank of North Dakota or the Industrial Commission could pursue additional authority or budget requests if more cash were needed.

Votes at a glance (bill discussed and recorded outcomes at this meeting): - Amendment to HB 12/13 (25.0626.03003): Adopted, recorded vote 15–0–1. Changes: removes added category language referencing correctional facilities and reduces the fund transfer from $50,000,000 to $20,000,000. - Amended HB 12/13 final disposition: Committee recommendation — do not pass, recorded vote 11–5.

What’s next: Because the committee recommended do not pass on the amended bill, HB 12/13 proceeds with that committee recommendation to the next floor steps. Advocates or the Bank of North Dakota can seek alternative pathways — including requests in agency budgets or future measures — if additional capital or statutory authority is needed.

Notes: The presentation referenced a prior project called the Grand Forks Veil project as precedent that jails can qualify under current fund language; Levi cited the Bank of North Dakota as the source of the fund balance and repayment schedule figures.