North Dakota Township Officers Association - Flexible Transportation Fund Direct Payments
Flexible Transportation Fund Direct Payments
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Distribution Frequency – Quarterly (January, April, July, October)
Flexible Transportation Fund Distribution, NDCC 24-02-37.3(5), allocates 9.00% of state funds deposited into the Flexible Transportation Fund to be distributed to non-oil-producing counties for the benefit of organized and unorganized townships' road needs based on the length of township road miles in each county pursuant to NDCC 54-27-19.1.
To be eligible for an allocation, an organized township must levy at least 18 mills for general purposes AND have a general fund balance of less than $100,000 as of December 31 of the prior year. A county must levy at least 18 mills for unorganized township road and bridge purposes to receive an allocation for the unorganized townships. The Flexible Transportation Fund distribution is based on collections of Motor Vehicle Excise Tax (NDCC 57-40.3-10) as well as interest and legislative transfers.
For purpose of distributions pursuant to NDCC 24-02-37.3 a non-oil-producing county means a county that had average annual oil production of fewer than 10 million barrels based on the average annual oil production in the three-year period ending with the most recently completed even-numbered fiscal year before the start of each biennium.
https://ndlegis.gov/cencode/t24c02.pdf
Flex Fund Mission
The mission of the Flexible Transportation Fund is to invest in North Dakota’s existing infrastructure by funding projects that reduce long-term maintenance and operations costs and improve the connectivity, efficiency, and safety of our transportation network.
Flex Fund History
The Flexible Transportation Fund (Flex Fund) was established by the 68th Legislative Assembly to complement the Federal Aid Highway program and further support an interconnected transportation system in our great state. After the success of the first round, the 69th Legislative Assembly expanded the program with additional funding and designated programs within the fund.
Flex Fund Direct Payments
This program is open to non-oil townships for road needs, with $20.7 million available for these distributions. Townships located in non-oil-producing counties (all counties except the 4 top oil-producing counties*) are eligible. Townships must levy at least 18 mills and have less than one hundred thousand dollars ($100,000) in their general fund as of December 31st, 2025.
*Townships in Williams, McKenzie, Mountrail, and Dunn counties are not eligible for Flex Fund Direct Payments.
The Payment Estimator will provide townships with an indication of the payments they may receive from the Flex Fund and Prairie Dog payment in this biennium. Townships should be aware that this estimate is based on 2024 data, which is used to forecast what would be paid if no changes were made. The actual payments will be based on data from 2025; the table shows that townships that do not levy at least 18 mills will not receive this payment. The table does not take into consideration if a township has more than $100,000 in its general fund, as we do not have that data. Those townships also will not receive these payments. Townships may transfer funds to a Special Road Fund to decrease their general fund.
Click to view the Payment Estimator