The conference committee on House Bill 1015 reviewed Senate changes to the Office of Management and Budget (OMB) biennial budget, discussing adjustments that would reallocate state funds for custodial pay equity, guardianship grants, deferred maintenance, the State Hospital project, Prairie Public Broadcasting infrastructure and several agency-space and transition costs.

Senator Wontzick summarized the Senate changes and the funding amounts included in the Senate draft, saying the Senate added $110,114 to provide equity funding aimed chiefly at facility-management custodians to reduce turnover and close an average $1,800 annual salary gap. The committee heard that turnover among custodial staff averages more than 20 percent.

The committee discussed a $219,000 rent replacement for the 15th Floor after the Legislative Council expanded into space previously occupied by Career and Technical Education (CTE). Senator Wontzick said the legislative council is exempt from rent, and OMB did not anticipate the resulting loss of rental revenue; the Senate language would use general funds to cover OMB facility, custodial and utility costs tied to that change.

Guardianship grants were addressed at length. The budget currently includes $7,100,000; the Senate split the difference between a $2,000,000 request and the House amount, increasing the appropriation by $1,000,000 to $8,100,000. Becky (staff) explained that House Bill 2029 establishes a new agency to administer guardianship grants and that appropriation transfers to the new agency when it is operational. Committee members said demand remains high and some proponents requested $9,100,000, but the Senate increase stops at $8,100,000. No formal vote was taken in the session transcript.

The committee reviewed $4,000,000 in other funds to support space reconfiguration, agency moves and supplemental rent for agencies that need different or additional space. Joe Morrissette of the Office of Management and Budget said the pool could be used to help agencies with moving, relocation, furniture or remodeling costs and to supplement rent budgets until the next session; CTE has a separate $300,000 allocation for moving and related needs, and OMB staff said they would coordinate assistance if more funds are required.

On broadcasting, the Senate removed ongoing operating funding for Prairie Public Broadcasting but agreed to one-time infrastructure funding of $850,000 from SIF for towers and transmitter-related work. Committee members discussed whether the state owned the towers or used space on Prairie Public towers; members noted the state currently uses space on some of those towers. The Senate language indicates the $850,000 is one-time SIF funding specifically for Prairie Public broadcasting infrastructure.

Retirement transfer incentives were clarified. Senator Wontzick said the election window closed with 144 employees choosing to transfer from the defined-benefit plan and receive a $10,000 incentive paid over three years; the biennium cost for two installment payments was reported at $959,904 and the Senate included a $1,000,000 appropriation to cover that total.

The Senate moved a statewide deferred maintenance approach into a new state facility maintenance fund, funded by a $40,000,000 transfer from SIF (the same appropriation amount included in the House version but routed into the maintenance fund). The committee also discussed moving management of the State Hospital construction to OMB, with the Senate setting $200,000,000 from SIF and an $85,000,000 Bank of North Dakota line of credit for the project; the House had included a larger line-of-credit amount raising its total to $330,000,000 in its earlier draft.

Members discussed general fund reductions and a new-and-vacant pool. Senator Wontzick said agency budgets for the 2023–25 biennium were reduced by a general-fund total of $52,000,000; $40,000,000 of that was placed in an OMB new-and-vacant pool and a $3,000,000 deficiency appropriation was included to provide flexibility to cover agency requests that may exceed the pool as the biennium closes.

Other technical adjustments noted in committee discussion included a $45,000 deficiency to cover travel and dues for state appointees to the Uniform Laws Commission and corrections to a transfer from the social services fund to the human services finance fund (Senate language revised an earlier $250,000,000 figure to $235,000,000 based on projected carryover and needs). Joe Morrissette asked the committee to consider adding an emergency clause for the deficiency appropriation so it would be effective in the current biennium if enacted.

Committee members raised several procedural and implementation questions but recorded no formal motions or roll-call votes in the transcript excerpt. Brady (staff) said he would prepare drafting language on a contingent appropriation option to allow any DAPL-related settlement funds to be applied to pay off the Adjutant General’s loan if and when the state receives those funds; Joe Morrissette and others noted the timing and appeal status of that settlement are unknown.

The committee concluded with scheduling notes and instructions that staff would return with drafting language for follow-up sections at the next meeting; the transcript records the committee adjourning with the next meeting scheduled for Tuesday.