Committee advances DHHS budget with new behavioral‑health investments and hospital financing plan

The House Appropriations Committee voted to adopt amendments and report House Bill 10‑12 (Health and Human Services) out of committee after a lengthy statement of purpose and debate on behavioral health, provider rates and information‑technology modernization.

Representative Jason Nelson, who presented the DHHS package, said the house budget reflects a range of behavioral‑health investments including increases for substance‑use disorder vouchers, inpatient and community treatment, provider inflationary adjustments and a hybrid financing plan for a new state hospital. “This is a very important area of the budget because there’s a lot of growth in the care for people with behavioral‑health needs and addiction needs,” Nelson said.

Major items described in the DHHS package included: - A $2.5 million increase for SUD (substance‑use disorder) vouchers and $500,000 for related medical services for people admitted to behavioral‑health facilities; - $22.5 million to respond to House Bill 13‑77 to expand treatment services in county and regional jails; - Provider inflationary increases across multiple provider categories (three separate increases described; one higher request was reduced by $2.0 million during committee deliberations); - Continued funding for Community Connect programs ($4,761,000) and related utilization funding ($4,458,881.40) plus a $4,016,908 increase for the Free Through Recovery program for people released from corrections; - A proposed new North Dakota State Hospital estimated at about $330 million (committee referenced a $200 million SIF appropriation and a $130 million Bank of North Dakota line of credit to finance construction); the facility was described as roughly 61 beds in committee discussion; - A 24‑bed contract in the northeast region with an 80/20 state/provider cost share and an 80% state share amounting to $12,960,000; - One‑time IT funding to continue migration from a legacy mainframe (committee referenced approximately $15 million in this biennium to advance the work); - One‑time appropriations and carryover authority for unfinished facility projects (including an exemption to carry forward $1,950,000 for a Northwest Human Service Center behavioral‑health facility already under construction).

Representative Nelson said the $330 million figure for the new state hospital came from a design study with estimated costs of roughly $332 million; the governor had proposed $300 million, and the committee’s package moved toward the higher estimate and described a financing plan that uses a mix of SIF funds and a Bank of North Dakota line of credit.

Committee members asked for reporting and a steering committee for the new state hospital. Nelson said the committee inserted language requiring progress reports and a legislative steering committee with members from both chambers to receive updates on design and construction.

Several smaller but targeted appropriations were also discussed and amended. The committee moved $750,000 for juvenile justice diversion services to the Department of Health and Human Services rather than to a statewide regional education association; it added $637,661 to start a fetal alcohol spectrum disorder clinic at the University of North Dakota; and it included a $3,457,736 payment to the Anne Carlson Center to cover a retroactive rate shortfall for certain high‑need developmental‑disability services.

Representative Nelson moved the do‑pass on House Bill 10‑12 as amended; the committee approved the motion on recorded roll calls and will send the bill to the House floor.

Ending: Committee members also discussed carryover authority for projects that will not be finished this biennium—Representative Richter’s amendment to exempt $1,950,000 of general funds for completion of a Northwest Human Service Center behavioral‑health facility was adopted to allow the project to continue into the next biennium.