If the property tax proposal is adopted, it would represent a blow to state finances of at least $3.15 billion.

This is the number used by the Legislative Management Committee.

The measure says local property taxes will be replaced with state funds based on the 2024 property tax assessment. And the Board of Management has approved this financial impact statement, which will go on the ballot along with the measure.

Some lawmakers fear this would prohibit local governments from issuing municipal bonds, for example for local schools.

“How are we going to build schools?” asked Senate Appropriations Committee Chairman Brad Bekkedahl (R-Williston). “I’m sure the public will say the state will build them. But I don’t know if we’re obligated to do that, and I don’t know if we’re even going to have the resources to do it.”

Senate Judiciary Committee Chair Sen. Janne Myrdal (R-Edinburgh) agreed that the measure could significantly impact funding for some needs. For example, Myrdal said a recent spate of gun violence in Fargo has led to calls for her committee to do something about it.

“I don’t know how we can communicate this clearly because our voters want tax relief,” Myrdal said. “This is simply a measure being implemented with a sledgehammer instead of looking at it with intelligent eyes.”

The property tax measure is number 4 on the November ballot.