The Senate Appropriations Committee recommended due-pass on three bills and amended two of them after debate and stakeholder discussions, then spent the remainder of the meeting working through the Information Technology and Corrections budgets.

Committee members adopted a floor amendment that reduced funding for a newly proposed program from $4.5 million to $500,000 and narrowed the program’s scope; they also approved an amendment directing cost-reporting and a rate recalculation for specialized basic-care adult residential facilities that serve people with dementia or brain injury. The committee advanced an orphan bill related to the North Dakota Boys and Girls Ranch as well.

Why it matters: The votes move the bills to the next step in the legislative process and set fiscal expectations for the biennium. The changes to appropriations and program design will alter implementation plans for agencies and providers, and the budget conversations foreshadow additional negotiations when the full committee and the other chamber review the measures.

SB 2036 amendment: scaled start-up, removed certification system

Senator Mather moved and a colleague seconded an amendment to reduce the appropriation in Senate Bill 2036 from $4,500,000 to $500,000 and to scale back the corresponding program. "Essentially, they are to bring the appropriation down to 500,000 from 4,500,000.0, and they do a corresponding reduction of the program," the senator said after describing stakeholder talks that included the governor's office, the Department of Human Services, the office of indigent defense and a Cass County state's attorney.

The amendment also removed a proposed certification system that had allowed the department to designate evaluators. The sponsor said the change reflected the small caseload the program would serve—roughly 15 cases per year—and that a smaller, phased program should meet the interim committee recommendations.

The committee voted the amendment and then voted a due-pass recommendation on the bill as amended. The roll-call recorded in committee showed all present voting in favor; the motion carried.

SB 2271 amendment: require cost reports and a July 1, 2027 rate recalculation

Senator Cleary moved an amendment to Senate Bill 2,271 that strikes language providing an immediate inflationary increase and a five percent operating margin for specialized basic-care adult residential facilities serving clients with dementia and brain injury. Instead, the amendment requires those facilities to submit cost reports for two years and directs the Department of Health and Human Services to perform a rate recalculation on July 1, 2027.

The sponsor described the amendment as a way to align payments to actual costs: "The goal here is to get them a little bit closer to the actual costs associated with providing the care, and that'll be done through the process of having them submit cost reports," Cleary said. The committee heard that the amendment carries an estimated general-fund cost of about $1.7 million and a roughly equal federal match.

The committee approved the amendment and then moved the bill forward with a due-pass recommendation, with the sponsor volunteering to carry the measure to full committee.

SB 2399 (Dakota Boys and Girls Ranch): due pass recommendation

Senator Cleary moved and the committee seconded a due-pass recommendation for Senate Bill 2,399, a bill concerning the Dakota Boys and Girls Ranch. The committee conducted a verbal roll call after an electronic voting problem; the motion carried and the bill was scheduled for full committee consideration.

IT budget and agency long sheet work

Committee members spent a substantial portion of the meeting reviewing the Information Technology Division (ITD / NDIT) long sheet and related amendment language. Highlights of the discussion included:

- A proposal to follow the governor’s (Armstrong) budget as the committee starting point for most IT lines.
- Agreement to remove a $5,000,133 pass-through line that committee members said merely changed billing mechanics between higher education and IT; committee members clarified the removal would not reduce overall funding but would change where the appropriation appears.
- Discussion and agreement to eliminate double-counting by removing a $95 million double appropriation on the ITD side. The committee understood agency appropriations for IT services would still appear in agency budgets; the change would remove the duplication on the central IT appropriation and was described as a technical accounting fix to allow continuing appropriation authority for certain recovered funds.
- A sponsor's proposal to reduce staffing requested for the statewide siren program from six employees to two as a compromise; the senator said roughly $37 million is available in the siren fund and the committee could revisit the larger needs later.
- Questions about several one-time items and requests for an updated long sheet and narrative. Committee members asked staff to deliver an updated long sheet before the next work session and to share it with agencies.

Corrections budget: program-level priorities and placeholders

The committee then turned to the Department of Corrections and Rehabilitation budget. Members asked detailed questions about many line items, debated whether items should be funded as ongoing or one-time, and requested additional detail from the department. Key points included:

- HRCC staffing: The department asked to authorize a reduced, phased-in set of 26 FTEs for the HRCC operations; the department explained the 26 positions were a pared-down list of the roles needed for initial operations.
- Reentry and transitional facilities: Committee members discussed a proposed 25-bed reentry center in the northwest region (Minot) and whether the state should fund a vendor-run facility or continue payments to county jails for overflow housing. The committee debated leaving a placeholder amount in the budget (a suggested ceiling was discussed) while seeking better data on jail housing and overflow costs.
- Roughrider Industries: Committee members questioned authority and spending for Roughrider Industries, which supplies goods and services produced by incarcerated workers. One member proposed trimming authority for supplies to about $8–10 million (a compromise was discussed) while others warned that reducing spending authority could limit the unit's ability to operate manufactured-product lines.
- Funding adjustments and turnbacks: The department reported it would turn back approximately $45 million in ARPA funds that had previously covered payroll, and the department also projected a general-fund deficiency in the neighborhood of $11.5 million related to jail payments and other costs. Committee members requested a detailed breakout of overflow jail payments and historical data to inform decisions.
- Programmatic evidence: Committee members reiterated testimony that investments in work programs and education—such as Roughrider Industries work and postsecondary opportunities—are associated with reduced recidivism; several senators urged preserving or prioritizing those programs.

Next steps and process notes

Committee staff agreed to circulate updated long sheets and to prepare amendment language so members could consider changes next week. Committee leadership scheduled a follow-up meeting to review the updated IT long sheet and to continue work on the corrections budget, with the intention of returning to the full committee for votes before crossover.

Votes at a glance

- Senate Bill 02/1936 (as amended): Amendment adopted to reduce appropriation from $4.5 million to $500,000; committee recommended due pass (motion carried). Voted recorded in committee: Senator Clary (yes), Senator Davidson (aye), Senator Devere (here/aye), Senator Mangrum (yes), Senator Mather (aye). (Roll-call as recorded in transcript.)

- Senate Bill 2,271 (as amended): Amendment adopted requiring cost reports and a July 1, 2027 rate recalculation; committee recommended due pass (motion carried). Roll-call recorded in committee showed majority aye.

- Senate Bill 2,399 (Dakota Boys and Girls Ranch): Committee recommended due pass (motion carried); vote taken by verbal roll call due to electronic voting issue.

Meeting context and procedural notes

The transcript records committee discussion, stakeholder references and votes taken by roll call or voice. Committee members repeatedly requested updated long sheets and additional narratives from agency staff before finalizing one-time and ongoing funding decisions. Several members emphasized they planned to follow the governor’s budget as a starting point for negotiations but reserved the right to prioritize or remove items as the session advances.

Ending

The committee recessed after instructing staff to circulate updated long sheets and to prepare amendments for the next work session. Additional hearings and votes are scheduled as bills and budgets move toward full committee consideration.