Lawmakers in the House Appropriations — Human Resources Division on Tuesday worked through a packet of amendments to the Department of Corrections and Rehabilitation budget that would restore a $5 million diversion and deflection center grant for Fargo, adjust planning funds for a proposed Missouri River Correctional Center, and add ongoing and one-time dollars for county jail overflow, reentry centers and corrections staffing.

The committee’s amendments would: restore a $5 million Fargo diversion and deflection center grant that requires a 2-to-1 local match and move that $5 million from the General Fund to the Community Health Trust Fund; propose $19.5 million (subject to further adjustment) for MRCC planning and design and add steering-committee language modeled on prior projects; increase one-time payments to county jails for overflow housing; author new and shifted FTEs and operating funding for county correctional centers; and add contingency SIF funding to cover tasers, ballistic vests and body cameras if federal grant dollars do not materialize.

Why it matters: The measures affect where people with behavioral health and reentry needs receive services, how local governments share costs, and the state corrections system’s capacity over the next biennium. Committee members said the Fargo grant is intended to reduce pressure on local law enforcement and county jails by creating a place for people who need behavioral-health and reentry supports rather than incarceration.

Key provisions and committee discussion

Fargo diversion and deflection center: The committee put a $5,000,000 one-time grant for a diversion and deflection center in Fargo back into the DOCR package and agreed the grant would require a 2-to-1 local match (representing $15 million total if fully matched). Committee members and staff discussed the match requirement and local stakeholders’ interest in using Fargo as a “proof of concept” for a model that could be replicated elsewhere.

Representative Murphy said he heard from local officials that “Fargo’s got a much, much greater problem than we see in Grand Forks,” and that a proof of concept could produce data for other communities to consider. Multiple members raised concerns about whether the program belongs in the corrections budget; Representative Berg called it “a housing finance issue, not a corrections issue,” while Vice Chair Steeman and others said the placement in DOCR was a practical starting point and that details could shift in conference committee.

Funding source: Committee staff and members agreed to move the $5,000,000 from the General Fund to the Community Health Trust Fund. The shift was confirmed by committee consensus during the meeting.

Corrections staffing, beds and overflow payments: Staff reviewed several FTE changes and operating adjustments that restore positions the governor proposed or the Senate removed. Among the specifics discussed: restoring a pretrial services position (near $240,000), adding a youth correctional center security officer position (about $180,000), and reconfiguring positions and funding for county correctional centers (a proposed total of 12.5 FTE and roughly $4,000,000 for multiple county sites compared with the Senate numbers).

The committee also discussed one-time increases for payments to county jails for overflow housing, a line proposed at about $11,400,000 to reflect higher actual need than originally estimated.

Contracts and guaranteed beds: Department director Colby Braun described staggered contracting and bed guarantees with counties. “Right now we know we could fill Grand Forks,” Braun said, adding the department is “looking at an 8 year contract” in some cases and that guaranteed-bed contracts generally produce a lower per-bed rate but expose the state to paying for unused beds if demand shifts.

Man camp and reentry centers: Members discussed a proposed $8,000,000 purchase for a 72-bed “man camp” (the executive had requested $9.3 million); committee staff confirmed the $8 million figure covers purchase and installation, with additional one-time operating costs. The committee also restored $100,000 to bring a 25-bed regional reentry center in the northwest region back to the governor’s recommendation ($1.6 million ongoing) and discussed restoring $1,500,000 for correctional facility program grants and $25,000 for a Native American reentry program previously removed from other legislation.

MRCC planning and steering committee: The governor requested $23,000,000 for planning and design of a new Missouri River Correctional Center; the Senate reduced that to $20,000,000. The House amendment package discussed by the committee would move to a planning figure of about $19,500,000 to fund printed plans and specifications. Committee members also agreed to add language establishing a steering committee for MRCC planning and design modeled on recent large projects (one member of each chamber plus minority representation, with flexibility for additional appointees). Representative Berg noted the $19.5 million figure was an estimate based on typical design percentages and that the exact number could change.

IT, data and parole-board study language: The package restores funds for IT data processing and medical IT modules and includes language tied to a proposed parole-board study. Multiple members emphasized the need for improved case-management and data systems so the department and lawmakers can track releases, sentences and other outcome data; Representative Wagner said anecdotal claims about individual releases highlight the need for accurate data.

Equipment and victim-services funding: The committee restored funding for law-enforcement equipment (tasers, ballistic vests and body cameras) that the governor had proposed; the package assumes about $2.08 million for those items with a federal grant expected to cover roughly half. Committee members agreed to include contingent SIF dollars to replace any federal grant shortfall. Michelle Zander, the department’s chief financial officer, told the panel that federal victim-of-crime grant awards have declined in recent cycles; she said the state’s annual award dropped and the department was seeking to backfill roughly $7,000,311 to maintain current grant distributions to subrecipients.

Next steps and timeline

Committee staff said the combined amendment (the “long sheet”) would likely be ready Monday afternoon or Tuesday, with a committee vote on Tuesday planned to move the agency bill out of the committee. Chair Nelson named Representative Steeman as the conference chair and asked Representatives Berg and Wagner to serve as the other House conferees for discussions with the Senate.

Decisions recorded by the committee

- Restore $5,000,000 one-time grant for a Fargo diversion and deflection center with a 2-to-1 local match; move funding source from General Fund to Community Health Trust Fund.
- Include contingent SIF funding to replace federal grant funds if federal awards for tasers, vests and body cameras are not received.
- Add steering-committee language for MRCC planning and design; leave final MRCC planning amount subject to Representative Berg’s follow-up.

The committee did not take final votes on the full agency bill during the meeting; members planned to review the finalized long sheet and vote in committee on Tuesday, with a subsequent conference process to follow if the House and Senate versions differ.

Ending

Committee members repeatedly emphasized the committee’s goal of producing a budget that matches operational reality and provides data and steering structures for major projects. Staff were directed to finalize the amendment packet for a planned Tuesday vote and to prepare brief, documented timelines and staffing projections to support the bed and contract assumptions in the packet.