North Dakota has harnessed the power of bonding for decades. State agencies currently hold a modest balance of $2.25 billion in bonds issued mostly to support housing and water projects. However, the state has not used bonding extensively for transportation projects as many other states do.

With interest rates at historic lows and an assured source of repayment in Legacy Fund earnings, “Now is the time to invest in our future with a backbone of smart, efficient, modern infrastructure,” Burgum said.

“Waiting to build major infrastructure projects only until we can pay cash defers the economic benefits, exposes us to future construction inflation, raises local cost share and limits our growth,” he said. “Bonding works. Our school districts and cities do it regularly. It’s simple, and most importantly, in today’s interest rate environment, it is very smart and economical.”

Under the executive budget proposal, the state will sell bonds in the amount of $1.25 billion:

• $700 million will be used for infrastructure revolving loan funds to be loaned out to political subdivisions for water, road, bridge and other projects under long-term, low-interest loans that will help keep property taxes low.
• $323 million will go toward transportation, bridge and community project grants that can be undertaken now to see immediate improvements in communities and roadways.
• $45 million go into a cost-sharing match grant program to incentivize the expansion and opening of local career academies.
• $182 million will be used to address maintenance and repair issues with state facilities that have gone unaddressed for too long.
  A portion of Legacy Fund earnings would be used to create a Legacy Bond Repayment Fund to make the debt payments on the $1.25 billion in bonds.

• Use 20 percent of Legacy earnings to drive economic diversification, community development and strategic initiatives across the state. Envision support for the expansion and development of new businesses and industries including value-added energy and agriculture, unmanned aerial systems, autonomous technologies, advanced manufacturing and biosciences.
• 10 percent of earnings would go for research and innovation, both in higher education systems and throughout the private sector. Funds should support ideas that will solve major problems the world currently faces such as carbon capture and utilization and commercialization of products.
• 10 percent of earnings would transform how government provides services, accelerating innovation and transformation that promotes efficiency and replaces antiquated brick-and-mortar, in-person approaches and paper-based business processes with state-of-the-art systems.
• Use 40 percent of earnings to create the Legacy Bond Repayment Fund. The fund will be used to make the debt payment on the $1.25 billion in bonds proposed in the budget.
• Invest 20 percent of earnings into transformational legacy projects, driving big-picture ideas with a high return on investment for North Dakota citizens.