Amendment taps ND school fund for scholarships

Associated Press

BISMARCK, N.D. (AP) — A proposed North Dakota constitutional amendment would use an education reserve fund to provide North Dakota's best high school students with money for college scholarships.

The "foundation aid stabilization fund" has been growing from oil tax revenues. By July 2013, it's expected to have $234 million.

Fargo Sen. Tim Flakoll says earnings from the fund could provide scholarships for North Dakota high school students who get good grades and score well on the ACT test.

The North Dakota Senate's Education Committee held a hearing on the amendment Tuesday.

Fargo Sen. Tony Grindberg says the reserve fund would provide a permanent money source for scholarships.

The fund was created to protect local schools from shortfalls in state tax collections. It hasn't been used for a number of years.