The Senate Human Services meeting on February 17, 2025, focused on the compensation rates for the Senior Community Service Employment Program (CSEP) under the Department of Health and Human Services. Interim Director Jim Fleming presented the details of Engrossed House Bill 1066, which aims to optimize the use of federal funds allocated to the program.

Fleming explained that North Dakota receives $7.8 million annually from the Older Americans Act, which mandates the operation of CSEP. This program is designed for individuals aged 55 and older who have been unemployed for at least six months and have an income below 125% of the poverty level. The goal is to provide training that encourages these individuals to re-enter the workforce.

Currently, the program struggles with low participation rates, averaging only 20 to 25 participants, despite being authorized for up to 49. The federal minimum wage of $7.25 per hour is not competitive with prevailing entry-level wages of nearly $20 per hour, making the program less appealing to potential participants. Fleming noted that this low wage structure limits the number of training hours and, consequently, the allowable administrative costs, which are capped at 13% of total expenditures. As a result, a significant portion of the federal funds goes unused and is returned to the federal government.

Fleming emphasized that states with higher minimum wages have better success in utilizing federal CSEP funds, as they can offer more competitive compensation, leading to increased participation and training hours. The proposed bill seeks to establish a compensation rate specifically for CSEP participants, which could enhance recruitment and program effectiveness.

The meeting underscored the importance of addressing the compensation structure to fully leverage federal resources and support the employment of older, low-income individuals in North Dakota. Further discussions and potential actions regarding the bill are anticipated in upcoming sessions.