The Appropriations - Education and Environment Division on a committee meeting amended and voted to advance bill 10-13, approving funding adjustments for K-12 programs and directing staff to resolve outstanding procurement and IT concerns with the Bank of North Dakota before further action.

The amendment, which revised Regional Education Association (REA) allocations and other line items, passed the committee by recorded voice vote. Chairman Sorvaugh and Senators Connolly, Thomas and Scheible voted aye; Senator Meyer voted no on the amendment. The committee then voted to move bill 10-13 as further amended with recorded aye votes from Chairman Sorvaugh, Senator Connolly, Senator Thomas and Senator Scheible; the clerk announced the bill "passed" out of the division.

The bill's final draft reduced the Foundation Aid Stabilization Fund allocation and reallocated other carryover and special funds to per-pupil payments. Committee discussion and the file review presented these main funding changes: a reduction of $81,000,000 in the Foundation Aid Stabilization Fund leaving $133,000,000 directed to per-pupil payments; a transportation grant formula reduction to $2,000,000 (from $10,000,000 in an earlier draft); student free-and-reduced meal funding listed at $7,300,000 to cover a 225% eligibility level; a $3,000,000 paraprofessional-teacher fast-track grant; and targeted one-time grants including dyslexia/statewide reading and Native American history-and-culture programs.

Senator Scheible, the bill presenter, walked the panel through position and FTE changes that remained in the draft: one full-time equivalent (FTE) for technology adaptation at the School for the Blind scheduled for the second year of the biennium, and a 0.2 FTE adjustment for the Center for Distance Education. The draft also removed a previously proposed $10,000,000 science center grant and replaced some line items with smaller, targeted appropriations.

Senator Meyer argued against restoring the $10,000,000 science center grant, citing concerns about precedent and state spending priorities and noting variance in past grants to other cities. "I'm gonna be voting against the amendment again for that $10,000,000 science grant," Meyer said, adding that although the projects are "very worthwhile," state responsibility for funding local science centers is limited.

Committee members also discussed clarifying the REA allocation after two REAs merged; the amendment reduced the proposed allocation to reflect six REAs, changing the total to $600,000 (six at $100,000 each) and that adjustment was folded into the amendment the committee approved.

Kelvin Hola, chief business development officer at the Bank of North Dakota, told the committee the bank identified policy changes in the current draft that warrant further review and asked for time to confer with the bill sponsor. "I would really like a chance to confer with Senator Scheible about that, before you move on the bank's portion of those amendments," Hola said, requesting more time because the bank believes several provisions would change procurement or policy mechanics.

Sherry Nees, chief procurement officer in the Office of Management Budget, told senators the procurement and IT laws contain mechanisms to prioritize or justify expedited or limited-competition procurements but asked for time to review and for a joint meeting with NDIT and the Bank of North Dakota to address cybersecurity and procurement concerns. "There's lots of flexibility in the law, but we have to understand what the concerns are and how we would mitigate those concerns," Nees said.

As a result of those outstanding technical and policy questions, the committee agreed to delay further action on related bank and procurement provisions and to reconvene Monday to continue work. The chair said the panel will give staff and the Bank of North Dakota time to confer and, if needed, bring amendments when the committee meets again.

The committee also approved several language and carryover adjustments in the bill: a provision authorizing certain carryover funds to support per-pupil payments; line items for state library renovation authority; an allocation for school boilers at the School for the Deaf; and language on unexpended appropriations and fund transfers. Several grant continuations were retained, including teacher mentoring programs (Teacher RISE) reduced from three years to two and ongoing arts and writing program pass-throughs.

The committee stood at ease after the vote and adjourned the session with instructions that staff will circulate revised draft language and meet with Bank of North Dakota and relevant state IT and procurement officials before the Monday session.

Votes at a glance:
- Amendment to 10-13 (includes change to REA allocation to $600,000): Passed; recorded vote on amendment — Sorvaugh: Aye; Connolly: Aye; Thomas: Aye; Shively: Aye; Meyer: No.
- Motion to move 10-13 as further amended (do pass): Passed; recorded aye votes: Sorvaugh, Connolly, Thomas, Scheible (other votes not recorded in the transcript excerpt).