A BILL for an Act to create and enact a new section to chapter 52-08 of the North Dakota Century Code, relating to workforce training center funding distribution.

69th Legislative Assembly (2025-26) Introduced by Todd Beard

Creates a state funding formula for career training centers: 60% base split, 20% by average training hours, 20% by unduplicated participants (three-year avg from prior four years).

Second reading, failed to pass, yeas 16 nays 29

Summary — SB 2131 (North Dakota) — Workforce training center funding distribution

Status
- Introduced: January 7, 2025 (first reading; referred to Workforce Development Committee)
- Committee hearing: January 17, 2025
- Reported back (do not pass): February 14, 2025 (placed on calendar 3-0-2)
- Second reading, failed to pass: February 17, 2025 (yeas 16, nays 29)
- Ultimately did not advance (died in committee / failed on second reading)
- Companion bill: HB 3712

Purpose and intent
- To establish a statutory formula for how the State Board for Career and Technical Education (SBCTE) must distribute the total biennial appropriation for workforce training among North Dakota’s workforce training centers. The goal is to combine an equal base allocation with performance-based components tied to training hours and unduplicated participants.

Key provisions
- Creates a new section in chapter 52-08 of the North Dakota Century Code directing the SBCTE to distribute the biennial workforce training appropriation as follows:
1. 60% of the total appropriation divided equally among all workforce training centers.
2. 20% apportioned among centers based on each center’s average number of training hours provided during the “first three consecutive fiscal years” of the previous four fiscal years immediately preceding the year of distribution.
3. 20% apportioned among centers based on each center’s average number of unduplicated participants reported during the same three-year window described above.

Data and timing specifics
- The performance components use historical data: averages from three consecutive fiscal years drawn from the previous four fiscal years immediately preceding the distribution year. Distributions occur on a biennial basis (tied to the biennial appropriation).

Who would be affected
- Primary: All state-designated workforce training centers — funding levels would change depending on equal-share allocation plus performance on training hours and participant counts.
- Secondary: The State Board for Career and Technical Education (responsible for implementing the distribution formula and calculating averages).
- Indirect: Trainees, employers, and workforce development programs that rely on center services could see funding stability or shifts.

Likely impacts and considerations
- Funding predictability: A 60% equal split provides a stable base for all centers; the 40% performance-based portion creates incentives to increase training hours and enrollments.
- New or recently established centers may be disadvantaged by the three-year averaging requirement (limited historical data).
- Administrative burden: SBCTE must collect, verify, and calculate historical training hours and unduplicated participant counts for each biennium.
- Policy trade-offs: Balances equity (equal share) with performance orientation; actual fiscal impact depends on total appropriation amounts (not specified in the bill).

Legislative outcome
- SB 2131 did not pass (failed on second reading, yeas 16 — nays 29) and therefore did not become law.