Representative Eric Murphy, a member of the House Education Committee, introduced House Bill 1161 at a committee hearing to establish an Office of Management and Budget (OMB) “pool” that would hold salary and benefits appropriations for vacant full‑time equivalent positions at institutions governed by the State Board of Higher Education.

“An OMB pool that would be where positions that are new positions and or, other positions, for instance, when people leave, where the money would go and sit in a reserve pool in OMB for both the salaries as well as the benefits,” Murphy said. He told the committee the model is similar to a mechanism enacted for executive‑branch positions last session and said early results show roughly $32,000,000 in net savings, with possible biennial savings “in excess of $50,000,000.”

The bill would require institutions to transfer appropriated salary funds for vacant positions into institution‑specific accounts held by OMB. Institutions could request releases from their pool when a recruit is identified or to hire temporary employees; Murphy said the structure is meant to prevent unused salary dollars from being spent elsewhere within an institution and to make funds available when lengthy faculty searches conclude.

The North Dakota University System (NDUS) and the State Board of Higher Education testified in opposition. Lisa Johnson, vice chancellor for academic and student affairs for the NDUS, told the committee that the bill “mandates the transfer of appropriation authority for the vacant positions to the office of OMB” and that the change would restrict the board’s and institutions’ ability to manage campus operations. Johnson cited a constitutional limit on legislative authority over the board, telling members, “Article 9, section 66… the State Board of Higher Ed has full authority over the institutions under its control.”

NDUS witnesses said the current practice is to retain unused salary appropriations at the institution level and that institutions use that flexibility to respond to retirements, grant‑funded projects and other mission needs. Johnson warned the bill could delay hiring, “affect the quality of education,” and hinder campuses’ ability to respond to emergent workforce needs.

Committee members questioned logistics and scope. Murphy acknowledged some implementation complexity for “backfill” situations — for example when an existing faculty member moves to an administrative post and their teaching duties must be replaced — and said the bill attempts to accommodate both temporary hires and backfills. Members asked whether the governor’s budget request (which Murphy said included 137 FTEs for higher education) affects how positions are created and funded; Murphy replied that some positions are created by institutions or the State Board and some are funded by the legislature, depending on the position type.

Murphy said each of the 11 institutions would have its own OMB account and that the bill’s detailed allocation mechanics were worked out with legislative counsel, though not all technical details are in the draft bill. NDUS witnesses disputed that institutions would retain control over returned funds and told the committee the bill does not guarantee that funds returned by one department would be returned to that department’s budget.

The hearing record shows no committee vote; the committee closed the hearing after receiving testimony in opposition and other members’ questions. The bill will be scheduled for further committee action or amendment at a later date.