In a recent meeting of the North Dakota Senate Human Services Committee, discussions centered around a proposed bill aimed at enhancing the Senior Community Service Employment Program (CSEP). The bill, known as Engrossed House Bill 1066, seeks to adjust the compensation rate for participants in this federally funded program, which is designed to assist low-income individuals aged 55 and older who have been unemployed for at least six months.

Jim Fleming, the interim director of the Vocational Rehabilitation Program at the Department of Health and Human Services, presented the bill, emphasizing its potential to save state funds while maximizing the use of federal grants. North Dakota receives approximately $7.8 million annually under the Older Americans Act, but to access these funds, the state must operate the CSEP. Currently, the program struggles with low participation rates, averaging only 20 to 25 participants, largely due to the low compensation of $7.25 per hour, which is not competitive with prevailing entry-level wages of nearly $20 per hour.

The proposed legislation would establish a compensation rate of $12 per hour for CSEP participants, which is expected to attract more individuals to the program. Fleming noted that states with higher minimum wages have been more successful in utilizing federal funds, as increased pay leads to higher participation and training hours. The bill also allows for flexibility in adjusting the compensation rate based on market conditions, with the possibility of rulemaking to modify the rate after its initial implementation.

Committee members expressed support for the bill, recognizing its potential to reduce state costs associated with administering the program while increasing the number of participants. If the bill is not enacted, the state risks losing federal funds and incurring additional administrative costs.

In conclusion, the Senate Human Services Committee's discussions highlighted the importance of the CSEP in providing training and employment opportunities for older adults in North Dakota. The proposed changes aim to enhance the program's effectiveness and ensure that federal funds are fully utilized, ultimately benefiting both participants and the state’s economy. The committee is expected to move forward with the bill, which could take effect on July 1, 2025, pending further legislative approval.