Hello Everyone,
Please enjoy the information contained in this edition of Frontier Focus. Please be sure to share it with your members, colleagues, providers and office billing staff. Thank you for your continued efforts to broadcast Medicare information to the providers in Region VIII.
Table of Contents
1. MEDICARE REOPENS COMPETITIVE BIDDING PROGRAM FOR MEDICAL EQUIPMENT AND SUPPLIES
2. Bidding Is Now Open for the Round 1 Rebid of the DMEPOS Competitive Bidding Program!
3. New Requirements for Medicare DMEPOS Suppliers - Accreditation/Surety Bonds
4. Eighth and Final Special Open Door Forum Bidders' Conference for the Round 1 Rebid of the Medicare DMEPOS Competitive Bidding Program
5. October 2009 Quarterly Provider Specific File Update – REVISED
6. Protect your patients and yourself from influenza: Get Vaccinated!
7. Your October Flu Message
8. New from the Medicare Learning Network®
9. Extra Help for Beneficiaries Paying for Prescription Drugs
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1. MEDICARE REOPENS COMPETITIVE BIDDING PROGRAM FOR MEDICAL EQUIPMENT AND SUPPLIES
The Centers for Medicare & Medicaid Services (CMS) today began accepting bids from accredited and bonded medical equipment suppliers after implementing a number of important modifications to the program and conducting an intensive supplier outreach and education effort.
Medicare-approved medical equipment suppliers will have 60 days in which to submit bids for the Round One Rebid of the Medicare Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) in nine communities.
Suppliers that have completed the bidder registration process may now access the on-line bidding system and begin the process of submitting their bids. Information and materials may be found at www.dmecompetitivebid.com .
For additional information about the Medicare DMEPOS Competitive Bidding Program, please visit: http://www.cms.hhs.gov/DMEPOSCompetitiveBid/.
To read the complete CMS Press release issued today (10/21/09) click here: http://www.cms.hhs.gov/apps/media/press_releases.asp
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2. Bidding Is Now Open for the Round 1 Rebid of the DMEPOS Competitive Bidding Program!
The Centers for Medicare & Medicaid Services (CMS) is now soliciting bids for the Round 1 Rebid of the Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. All bids must be submitted in DBidS, the on-line bidding system, by 9 p.m. prevailing Eastern Time on December 21, 2009; all required hardcopy documents that must be included as part of the bid package must be postmarked by 11:59 p.m. on December 21, 2009. The contract period for mail order diabetic supplies is January 1, 2011 – December 31, 2012. The contract period for all other Round 1 Rebid product categories is January 1, 2011 – December 31, 2013.
All bidders must submit certain required hardcopy documents as specified in the Request for Bids (RFB) instructions. CMS urges all bidders to take advantage of the new covered document review process. Under this new process we will notify suppliers that submit their hardcopy financial documents by the Covered Document Review Date (CDRD) of any missing financial documents. The CDRD for the Round 1 Rebid is November 21, 2009 - financial documents must be postmarked by 11:59 p.m. on November 21, 2009 to qualify for the covered document review process. This process only determines if there are any missing financial documents. It does not indicate if the documents are acceptable, accurate or meet applicable requirements. Suppliers that submit financial documents by the CDRD will be notified of any missing financial documents within 45 days of the CDRD. Suppliers will be required to submit the missing financial document(s) within 10 business days of the notification.
The Round 1 Rebid competitive bidding areas (CBAs), product categories, DBidS information, bidder charts, educational materials, and complete RFB instructions can be found on the Competitive Bidding Implementation Contractor (CBIC) web site, www.dmecompetitivebid.com. Suppliers should review this information prior to submitting their bid(s). CMS will send important bidding updates via e-mail, so all suppliers interested in bidding are urged to sign up for E-mail Updates on the home page of the CBIC website. If you have any questions about the bidding process, please contact the CBIC Customer Service Center at 1-877-577-5331.
The target registration dates for Authorized Officials (AOs) and Backup Authorized Officials (BAOs) to register in CMS’ Individuals Authorized Access to the CMS Computer Services (IACS) system have passed. End Users (EUs), as well as any AOs and BAOs who have not yet registered, should now be registering. Only suppliers that have registered and received a user ID and password will be able to access the on-line bidding system and submit bids. If the AO for your company has not already registered, we cannot guarantee that he or she will be able to complete the registration process before registration closes. If your AO does not register, you cannot bid and will not be eligible for a contract. In addition, suppliers whose AOs have not registered are at risk of experiencing delays in accessing the on-line bidding system to get a bidder number and thereby missing the opportunity to submit financial documents by the CDRD. Registration will close on November 4, 2009 at 9:00 p.m. EST – no AOs, BAOs, or EUs can register after registration closes. Suppliers that do not register cannot bid and are not eligible for contracts. To register, visit the CBIC web site, www.dmecompetitivebid.com.
Please note that the RFB instructions initially posted on the CBIC web site contained target bid submission deadlines, including a target midnight bid deadline. CMS has updated the RFB instructions posted on the CBIC web site to reflect the actual bid submission deadlines shown in this announcement.
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3. New Requirements for Medicare DMEPOS Suppliers - Accreditation/Surety Bonds
If you help people with Medicare get certain medical equipment and supplies, such as oxygen or power wheelchairs, you should know about new requirements for Medicare suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) now in effect that may change the suppliers that Medicare beneficiaries will need to use. CMS is sending notification letters to beneficiaries who may need to change suppliers in order for Medicare to pay for their equipment and supplies. The letter encourages each beneficiary to check with their supplier to make sure that the supplier meets the new requirements. The letter also provides instructions for the beneficiary to find another supplier, if necessary. A copy of the notification letter along with additional information on Medicare’s new accreditation and surety bond requirements for DMEPOS suppliers may be found at http://www.cms.hhs.gov/Partnerships/03_DMEPOS_Toolkit.asp#TopOfPage.
Please forward & distribute to your counselor networks!
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4. Eighth and Final Special Open Door Forum Bidders' Conference for the Round 1 Rebid of the Medicare DMEPOS Competitive Bidding Program
Centers for Medicare & Medicaid Services
Special Open Door Forum:
Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program Bidders’ Conference:
Open Call
Wednesday, November 4, 2009
2:00 pm-3:00 pm Eastern Time
Conference Call Only
Please join us for the eighth and final Special Open Door Forum (ODF) bidders’ conference for the Round 1 Rebid of the Medicare durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) competitive bidding program. At this Special ODF, we will respond to prospective bidders’ questions about the competitive bidding process. If you have questions you would like to submit in advance of the ODF, please e-mail them to CMS at cbic.teleconference@PalmettoGBA.com by November 1, 2009.
Reminder: Bidding is open. All bids must be submitted in DBidS, the on-line bidding system, by 9 p.m. prevailing Eastern Time on December 21, 2009; all required hardcopy documents that must be included as part of the bid package must be postmarked by 11:59 p.m. on December 21, 2009. CMS urges all bidders to take advantage of the new covered document review process. Under this new process we will notify suppliers that submit their hardcopy financial documents by the Covered Document Review Date (CDRD) of any missing financial documents. The CDRD for the Round 1 Rebid is November 21, 2009 - financial documents must be postmarked by 11:59 p.m. on November 21, 2009 to qualify for the covered document review process.
Only suppliers that have registered and received a user ID and password will be able to access the on-line bidding system and submit bids. The target registration dates for Authorized Officials (AOs) and Backup Authorized Officials (BAOs) to register in CMS’ Individuals Authorized Access to the CMS Computer Services (IACS) system have passed. End Users (EUs), as well as any AOs and BAOs who have not yet registered, should now be registering. If the AO for your company has not already registered, we cannot guarantee that he or she will be able to complete the registration process before registration closes. If your AO does not register, you cannot bid and will not be eligible for a contract. In addition, suppliers whose AOs have not registered are at risk of experiencing delays in accessing the on-line bidding system to get a bidder number and thereby missing the opportunity to submit financial documents by the CDRD. Registration will close on November 4, 2009 at 9:00 p.m. EST – no AOs, BAOs, or EUs can register after registration closes. Suppliers that do not register cannot bid and are not eligible for contracts. To register and bid, visit the Competitive Bidding Implementation Contractor (CBIC) web site, www.dmecompetitivebid.com.
Background:
The Round 1 Rebid competitive bidding areas (CBAs), product categories, DBidS information, bidder charts, educational materials, and complete RFB instructions can be found on the CBIC web site, www.dmecompetitivebid.com. Suppliers should review this information prior to submitting their bid(s). CMS will send important bidding updates via e-mail, so all suppliers interested in bidding are urged to sign up for E-mail Updates on the home page of the CBIC website. If you have any questions about the bidding process, please contact the CBIC Customer Service Center at 1-877-577-5331.
We look forward to your participation.
Special Open Door Participation Instructions:
Dial: 1-800-837-1935 & Reference Conference ID: 23045924
Note: TTY Communications Relay Services are available for the Hearing Impaired. For TTY services dial 7-1-1 or 1-800-855-2880. A Relay Communications Assistant will help.
An audio recording of this Special Forum will be posted to the Special Open Door Forum website at http://www.cms.hhs.gov/OpenDoorForums/05_ODF_SpecialODF.asp and will be accessible for downloading beginning Monday, November 16, 2009.
For Open Door Forum schedule updates, E-Mailing list subscriptions, and to view Frequently Asked Questions please visit our website at http://www.cms.hhs.gov/opendoorforums/ .
Thank you for your interest in CMS Open Door Forums.
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5. October 2009 Quarterly Provider Specific File Update – REVISED
It was discovered that the October 2009 quarterly Provider Specific Files (PSF) SAS data files were missing data. They have been revised and are now available on the CMS website at: http://www.cms.hhs.gov/ProspMedicareFeeSvcPmtGen/04_psf_SAS.asp in the Downloads section. If you use the Provider Specific SAS File data, please go to the page above and download the latest version of the PSF Files. Note: These are the quarterly data sets for the Provider Specific Data for Public Use in SAS Format.
It was also discovered that the October 2009 quarterly Provider Specific Files (PSF) Text data files were missing data. They have been revised and are now available on the CMS website at: http://www.cms.hhs.gov/ProspMedicareFeeSvcPmtGen/03_psf_text.asp in the Downloads section. If you use the Provider Specific Text File data, please go to the page above and download the latest versions of the PSF Files. Note: These are the quarterly data sets for the Provider Specific Data for Public Use in text format.
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6. Protect your patients and yourself from influenza: Get Vaccinated!
Protect your patients and yourself from influenza: Get Vaccinated!
This year the CDC recommends seasonal and 2009 monovalent H1N1 influenza vaccination for all healthcare workers because of their critical role in the health care system and their increased risk of exposure to patients with influenza, as well as concern about transmission of the viruses to susceptible patients. The 2009 H1N1 monovalent influenza vaccine is made in the same way as seasonal flu vaccine, which has a very good safety track record. Preliminary data suggest that the immunogenicity and safety of these vaccines are similar to those of seasonal influenza vaccines
Seasonal influenza vaccination among healthcare personnel reduces the flu-related mortality risk among patients at highest risk of severe illness. Despite the documented benefits of healthcare worker vaccination, seasonal influenza vaccine coverage in past seasons among this group has remained low (<50%) nation-wide. Influenza outbreaks in hospitals and long-term care facilities have been associated with low vaccination rates among healthcare workers, while higher vaccination levels among staff are associated with a lower incidence of nosocomial influenza cases.
More information on locating 2009 monovalent H1N1 and seasonal vaccine, priority groups for vaccination, and vaccine safety is located at www.flu.gov.
The most effective way to protect yourself and your patients from flu is to be vaccinated. It’s up to you!
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7. Your October Flu Message
Flu Season is upon us! CMS encourages providers to begin taking advantage of each office visit to encourage your patients with Medicare to get seasonal flu shots. Flu shots are their best defense against combating flu this season. And don’t forget—health care workers also need to protect themselves.
Medicare provides coverage of the flu vaccine without any out-of-pocket costs to the Medicare patient as a part B benefit. No deductible or copayment/coinsurance applies. Note that influenza vaccine is NOT a Part D covered Drug.
For more information about Medicare’s coverage of the seasonal influenza vaccine and its administration, as well as related educational resources for health care professionals, please go to http://www.cms.hhs.gov/MLNProducts/35_PreventiveServices.asp on the CMS website.
For information on Medicare policies related to H1N1 influenza, please go to http://www.cms.hhs.gov/H1N1 on the
CMS website. Additional information can also be found in the attached “Weekly H1N1 Influenza Bulletin.”
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8. New from the Medicare Learning Network®
· The Medicare Learning Network’s Diabetes-Related Services Brochure, which provides an overview of Medicare's coverage of diabetes screening tests, diabetes self-management training, medical nutrition therapy, and supplies and other services for Medicare beneficiaries with diabetes, has been newly revised and updated. It is now available on the Medicare Learning Network in a downloadable, printable format at the following address: http://www.cms.hhs.gov/MLNProducts/downloads/DiabetesSvcs.pdf . A printed hardcopy version will be available at a later date.
For more products related to Medicare-covered preventive services, please visit our preventive services educational products website at: http://www.cms.hhs.gov/MLNProducts/35_PreventiveServices.asp
· The following revised publications are now available in downloadable format from the Centers for Medicare & Medicaid Services Medicare Learning Network:
§ The Medicare Physician Guide: A Resource for Residents, Practicing Physicians, and Other Health Care Professionals (October 2009) offers general information about the Medicare Program, how to become a Medicare provider or supplier, Medicare reimbursement, Medicare payment policies, evaluation and management services, protecting the Medicare Trust Fund, inquiries, overpayments, and fee-for-service appeals. This publication can be accessed at http://www.cms.hhs.gov/MLNProducts/downloads/physicianguide.pdf .
§ The Facilitator’s Guide: Companion to Medicare Physician Guide: A Resource for Residents, Practicing Physicians, and Other Health Care Professionals (October 2009) includes all the information and instructions necessary to prepare for and present a Medicare Resident, Practicing Physician, and Other Health Care Professional Training Program including instructions for facilitators, customization guide, a PowerPoint presentation with speaker notes, pre- and post-assessments, master assessment answer keys, and a course evaluation tool. This publication can be accessed at http://www.cms.hhs.gov/MLNProducts/Downloads/facilitators_guide.zip .
· Recent MLN Matters articles of particular interest:
SE0922 – Alternative Process for Individual Eligible Professionals to Access Physician Quality Reporting Initiative (PQRI) and Electronic Prescribing (E-Prescribing) Feedback Reports
CMS has created an alternative process that individual EPs may use to request 2007 Re-Run and 2008 PQRI feedback reports based on their individual NPI. For more information, please see the article located at: http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0922.pdf on the CMS website.
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9. Extra Help for Beneficiaries Paying for Prescription Drugs
Do You Know Someone Who Is Having Trouble Paying For Prescription Drugs?
Medicare Can Help!
If an individual has limited income and resources, they may qualify for extra help from Medicare. It could be worth over $3,300 in savings on prescription drug costs per year.
Encourage people with Medicare to file for Extra Help online: https://s044a90.ssa.gov/apps6z/i1020/main.html or by calling Social Security at 1-800-772-1213 to apply over the phone.
State Health Insurance Information Program (SHIP) offices can assist with the application. Find contact information for a local SHIP Counselor at http://www.medicare.gov/contacts/static/allStateContacts.asp or by calling
1-800-MEDICARE.
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Lucretia James
Division for Medicare Health Plans Operations
Centers for Medicare & Medicaid Services
Region VIII
1600 Broadway, Suite 700
Denver, CO 80202
(303) 844-1568
lucretia.james@cms.hhs.gov
Professor Emeritus -- Dr. Tom Seymour from West Fargo, North Dakota -- Professor, Minot State University, MSU Faculty Regents Award (2015) -- PAST Peer Reviewer (Higher Learning Commission - Chicago); - Author and Presenter Board of Directors, SRT Communications, Inc and Minot City Alderman - Ward 5 (2010-June, 2016) PAST - Editor-in-Chief (North Dakota State Senator (2002-2010) 2017-Cass County Electric Cooperative- Board of Directors
Saturday, October 24, 2009
Friday, October 23, 2009
Teacher Education News
It pays to register for the AACTE Annual Meeting & Exhibits early:
•AACTE members who register by October 30, 2009 save $70 over the on site registration fee.
•Non-members who register by October 30, 2009 save up to 15% over the on site registration fee.
•Preconference workshops fill up fast; early registrants can ensure their place at these programs.
Don't miss out on these savings and opportunities. Click here, to register today!
AACTE Gathers Top Speakers for Major Forums
We've assembled an impressive roster of presenters from all aspects of the teacher education community to bring the most timely and thought-provoking issues and information to your attention.
Here is a listing of just a few of the exciting speakers you'll hear at the AACTE 62nd Annual Meeting & Exhibits Major Forums:
John Q. Easton:
Director of the Institute of Education Sciences,
U.S. Department of Education
Research vs. Advocacy: Is there a Bold Line?
Saturday, February 20, 2010,
12:15 – 1:45 p.m.
John Q. Easton was appointed by President Obama for a six-year term as director of the Institute of Education Sciences, the research arm of the U.S. Department of Education.
Prior to his appointment, he was executive director of the Consortium on Chicago School Research at the University of Chicago. Dr. Easton was affiliated with the consortium since its inception in 1990, and became its deputy director in 1997. He had a long association with the Chicago Public Schools (CPS), serving in several research capacities, including as director of the Department of Research, Analysis, and Assessment. He also served as director of research for the Chicago Panel on School Policy, where he led a study on the effects of decentralization on CPS.
He served a term (2003-07) on the National Assessment Governing Board, which sets policies for the National Assessment of Educational Progress (NAEP), also known as the "Nation's Report Card." In 2008, he was awarded a presidential citation from the American Educational Research Association for "research leadership and evaluation studies focused on improving the nature and quality of education in a large urban city."
Dr. Easton holds a Ph.D. in measurement, evaluation, and statistical analysis from the University of Chicago; a masters degree from Western Washington University; and a bachelors degree from Hobart College. He is the author or coauthor of numerous reports and articles, and two books: Charting Chicago School Reform: Democratic Localism as a Lever for Change and Organizing Schools for Improvement: Lessons from Chicago, to be published by the University of Chicago Press in fall 2009.
John Q. Easton will be joined by other scholars and a public-relations professional to discuss dimensions of the research versus advocacy issue from the following perspectives: the major sponsor of federal education research; an editor of a research journal; the program chair of a major research conference; and one seeking to report research “findings” to the general public.
Ken Kay:
President,
The Partnership for 21st Century Skills
Powering Up Teacher Preparation to Meet the Needs of 21st Century Learners
Friday, February 19, 2010,
2 – 3:30 p.m.
Ken Kay, president of the Partnership for 21st Century Skills, has been a major voice in defining the potential and promoting the importance of information technology applications in critical areas such as education, health care, e-commerce and government services.
The Partnership for 21st Century Skills, has emerged as the leading advocacy organization focused on infusing 21st century skills into education. The organization brings together the business community, education leaders, and policymakers to define a powerful vision for 21st century education to ensure every child's success as citizens and workers in the 21st century.
Ken Kay is also chairman and co-founder of Infotech Strategies, Inc. and leads Infotech's Education Technology practice. As executive director for the CEO Forum from 1996 to 2001, Mr. Kay facilitated dialogue between leaders in business, government, and education and led the group through development of the StaR Chart (School Technology & Readiness Guide), used by schools across the country to make better use of technology in the classroom.
Prior to founding Infotech Strategies, Inc., Mr. Kay was a principal of Podesta Associates, Inc. and a partner in the Washington, DC law firm of Preston Gates Ellis & Rouvelas Meeds. He spent more than eight years on Capitol Hill as legislative director to Senator Max Baucus, Counsel to the Senate Judiciary Committee, and legislative assistant to Congressman Ed Koch.
Mr. Kay received his law degree in 1976 from the University of Denver and his undergraduate degree from Oberlin College in 1973.
Attend this insightful Forum and find out what your institution can do to ensure that our children have the skills and knowledge to successfully meet the challenges and opportunities of a global economy.
Gene Wilhoit:
Executive Director,
Council of Chief State School Officers
Future Education Leaders:
How to Find, Develop, Nurture, and Keep Them
Saturday, February 20, 2010,
5 – 6:30 p.m.
And
Teacher Performance Assessment:
Raising the Bar for Teacher Effectiveness
Sunday, February 21, 2010,
10:30 a.m. – Noon
Gene Wilhoit assumed his role as executive director of the Council of Chief State School Officers (CCSSO) in November of 2006, having spent his entire professional career serving education at the local, state, and national levels. Gene began his career as a social studies teacher in Ohio and Indiana. He served as a program director in the Indiana Department of Education, an administrator in Kanawha County West Virginia, and a special assistant in the U.S. Department of Education before assuming the position of executive director of the National Association of State Boards of Education (NASBE), which he held 1986–1993.
From 1994 to 2006, Gene led two state education agencies, as director of the Arkansas Department of Education and as deputy commissioner then commissioner of the Kentucky Department of Education. In those positions, he shepherded finance reform, led equity initiatives, designed and implemented assessment and accountability systems, advanced nationally recognized preschool and technology programs, and reorganized state agencies to focus on service and support.
Gene holds a Bachelor of Arts degree in history and economics from Georgetown College and a masters in teaching, political science, and economics from Indiana University, Bloomington. Wilhoit has also studied education administration at West Virginia College of Graduate Studies. He is a member of numerous education organizations, has served on national and state commissions, and has written and spoken on a variety of education issues.
During the Future Education Leaders Forum Gene Wilhoit will join a panel of school administration association executives and thought leaders on education human resource development to consider the issues of finding, developing, nurturing, and retaining leaders and to debate several different solutions.
At the Teacher Performance Assessment Forum Gene Wilhoit and other presenters will outline the reasons why the Performance Assessment for California Teachers (PACT) initiative is so important for the profession, provide details of the initiative, and share early findings of the work that has already been accomplished in California.
Watch for more details about the exciting speakers and topics that will covered at the 62nd Annual Meeting & Exhibits in Atlanta.
AACTE Exhibits Feature Cutting-Edge Technologies and Services.
Click here, to see an updated list of exhibitors and sponsors.
General Information
The American Association of Colleges for Teacher Education (AACTE) is a voluntary association of colleges and universities with undergraduate or graduate programs to prepare
professional educators.
1307 New York Avenue, NW
Suite 300
Washington, DC 20005
For more information, contact Aimee Hall: ahall@aacte.org.
Plan Your AACTE Itinerary Today!
Meeting-at-a-Glance
Click on this link to view the 62nd Annual Meeting & Exhibits Meeting-at-a-Glance
Enjoy an Atlanta Adventure!
Atlanta Travel Guide
Atlanta on a Budget
Atlanta Dining
AACTE Major Forums Feature Timely Topics
AACTE has developed a broad range of Major Forum topics that address the burning issues of the day in teacher education. For 2010, we've added a 13th Forum as an added bonus. Speaker selection and confirmation is being finalized and a complete listing of all Forum topics and presenters will be announced in the next two weeks.
Here's a preview of some of the hot topics planned for the Major Forums at this year's Annual Meeting & Exhibits:
Considering Teacher Quality Policy in the Obama Administration
Friday, February 19, 2010,
2 – 3:30 p.m.
With the first year of President Obama's tenure completed, it is time to review his teacher quality policies and consider implications for the educator preparation profession. A representative of the Obama Administration will present an overview of teacher quality initiatives to date. Panelists will discuss and debate how the four major tenets of the education stimulus funding (building and using common standards and assessments, building and using statewide data systems, improving teacher quality, and strengthening struggling schools), as well as other Administration priorities have contributed to teacher quality policy.
New in 2010 -- Our 13th "Bonus" Forum has been added to Sunday's schedule:
Closing the Achievement Gap: Has NCLB made a difference?
Sunday, February 21, 2010,
2:15 – 3:45 p.m.
The academic disparity between African-American, Hispanic, and White students is one of the most enduring challenges in American education. One of the main goals of No Child Left Behind was to close this achievement gap and make sure all students achieve academic proficiency. However, results from the 2008 administration of the National Assessment of Education Progress (NAEP) call into question whether NCLB is having its intended effect. Panelists in this forum discuss data on student achievement, the underlying causes of these disparities, and promising programs to achieve the goal.
Powering Up Teacher Preparation to Meet the Needs of 21St Century Learners
Friday, February 19, 2010,
2 – 3:30 p.m.
Recent studies show there is a profound gap between the knowledge and skills most students learn in school and the knowledge and skills they need in typical 21st century communities and workplaces. Today's students need not only the basic skills—reading, writing and math—but must also possess a range of applied skills directly related to the workplace, including professionalism, teamwork, oral communication, and ethics and social responsibility.
AACTE is launching an initiative to accelerate the infusion of 21st century skills in teacher education with the publication of a blueprint for action. Find out what your institution can do to ensure that our children have the skills and knowledge to successfully meet the challenges and opportunities of a global economy.
On the Firing Line:
State Teacher Preparation Standards Under Siege
Saturday, February 20, 2010,
12:15 – 1:45 p.m.
Teacher shortages, the proliferation of alternate routes to teaching, and the Race to the Top proposal are among the many factors that have put pressure on states to weaken teacher licensure policies. Panelists at this forum will consider how these factors are impacting the nation's education workforce. They will highlight, in particular, three states where educator preparation and licensure policies have been challenged and where higher education has galvanized to address the challenges.
Educator Preparation: What Does the Future Hold?
Saturday, February 20, 2010,
3:15 – 4:45 p.m.
Some of the most insightful thinkers and prognosticators on education trends will forecast our future in big-picture terms. What will educator preparation—as we now know it—look like in five, ten, twenty years? Are these the 'right' directions? Could our collective will bend the trajectory? Views from state, district, research, and policy perspectives differ, and a lively dialogue among presenters and the audience is assured.
These are just a few of the exciting issues and topics that will be explored at this year's AACTE Annual Meeting & Exhibits. Register before October 30th to take advantage of early-bird discounts and secure your place at the conference that has the most to offer teacher educators.
•AACTE members who register by October 30, 2009 save $70 over the on site registration fee.
•Non-members who register by October 30, 2009 save up to 15% over the on site registration fee.
•Preconference workshops fill up fast; early registrants can ensure their place at these programs.
Don't miss out on these savings and opportunities. Click here, to register today!
AACTE Gathers Top Speakers for Major Forums
We've assembled an impressive roster of presenters from all aspects of the teacher education community to bring the most timely and thought-provoking issues and information to your attention.
Here is a listing of just a few of the exciting speakers you'll hear at the AACTE 62nd Annual Meeting & Exhibits Major Forums:
John Q. Easton:
Director of the Institute of Education Sciences,
U.S. Department of Education
Research vs. Advocacy: Is there a Bold Line?
Saturday, February 20, 2010,
12:15 – 1:45 p.m.
John Q. Easton was appointed by President Obama for a six-year term as director of the Institute of Education Sciences, the research arm of the U.S. Department of Education.
Prior to his appointment, he was executive director of the Consortium on Chicago School Research at the University of Chicago. Dr. Easton was affiliated with the consortium since its inception in 1990, and became its deputy director in 1997. He had a long association with the Chicago Public Schools (CPS), serving in several research capacities, including as director of the Department of Research, Analysis, and Assessment. He also served as director of research for the Chicago Panel on School Policy, where he led a study on the effects of decentralization on CPS.
He served a term (2003-07) on the National Assessment Governing Board, which sets policies for the National Assessment of Educational Progress (NAEP), also known as the "Nation's Report Card." In 2008, he was awarded a presidential citation from the American Educational Research Association for "research leadership and evaluation studies focused on improving the nature and quality of education in a large urban city."
Dr. Easton holds a Ph.D. in measurement, evaluation, and statistical analysis from the University of Chicago; a masters degree from Western Washington University; and a bachelors degree from Hobart College. He is the author or coauthor of numerous reports and articles, and two books: Charting Chicago School Reform: Democratic Localism as a Lever for Change and Organizing Schools for Improvement: Lessons from Chicago, to be published by the University of Chicago Press in fall 2009.
John Q. Easton will be joined by other scholars and a public-relations professional to discuss dimensions of the research versus advocacy issue from the following perspectives: the major sponsor of federal education research; an editor of a research journal; the program chair of a major research conference; and one seeking to report research “findings” to the general public.
Ken Kay:
President,
The Partnership for 21st Century Skills
Powering Up Teacher Preparation to Meet the Needs of 21st Century Learners
Friday, February 19, 2010,
2 – 3:30 p.m.
Ken Kay, president of the Partnership for 21st Century Skills, has been a major voice in defining the potential and promoting the importance of information technology applications in critical areas such as education, health care, e-commerce and government services.
The Partnership for 21st Century Skills, has emerged as the leading advocacy organization focused on infusing 21st century skills into education. The organization brings together the business community, education leaders, and policymakers to define a powerful vision for 21st century education to ensure every child's success as citizens and workers in the 21st century.
Ken Kay is also chairman and co-founder of Infotech Strategies, Inc. and leads Infotech's Education Technology practice. As executive director for the CEO Forum from 1996 to 2001, Mr. Kay facilitated dialogue between leaders in business, government, and education and led the group through development of the StaR Chart (School Technology & Readiness Guide), used by schools across the country to make better use of technology in the classroom.
Prior to founding Infotech Strategies, Inc., Mr. Kay was a principal of Podesta Associates, Inc. and a partner in the Washington, DC law firm of Preston Gates Ellis & Rouvelas Meeds. He spent more than eight years on Capitol Hill as legislative director to Senator Max Baucus, Counsel to the Senate Judiciary Committee, and legislative assistant to Congressman Ed Koch.
Mr. Kay received his law degree in 1976 from the University of Denver and his undergraduate degree from Oberlin College in 1973.
Attend this insightful Forum and find out what your institution can do to ensure that our children have the skills and knowledge to successfully meet the challenges and opportunities of a global economy.
Gene Wilhoit:
Executive Director,
Council of Chief State School Officers
Future Education Leaders:
How to Find, Develop, Nurture, and Keep Them
Saturday, February 20, 2010,
5 – 6:30 p.m.
And
Teacher Performance Assessment:
Raising the Bar for Teacher Effectiveness
Sunday, February 21, 2010,
10:30 a.m. – Noon
Gene Wilhoit assumed his role as executive director of the Council of Chief State School Officers (CCSSO) in November of 2006, having spent his entire professional career serving education at the local, state, and national levels. Gene began his career as a social studies teacher in Ohio and Indiana. He served as a program director in the Indiana Department of Education, an administrator in Kanawha County West Virginia, and a special assistant in the U.S. Department of Education before assuming the position of executive director of the National Association of State Boards of Education (NASBE), which he held 1986–1993.
From 1994 to 2006, Gene led two state education agencies, as director of the Arkansas Department of Education and as deputy commissioner then commissioner of the Kentucky Department of Education. In those positions, he shepherded finance reform, led equity initiatives, designed and implemented assessment and accountability systems, advanced nationally recognized preschool and technology programs, and reorganized state agencies to focus on service and support.
Gene holds a Bachelor of Arts degree in history and economics from Georgetown College and a masters in teaching, political science, and economics from Indiana University, Bloomington. Wilhoit has also studied education administration at West Virginia College of Graduate Studies. He is a member of numerous education organizations, has served on national and state commissions, and has written and spoken on a variety of education issues.
During the Future Education Leaders Forum Gene Wilhoit will join a panel of school administration association executives and thought leaders on education human resource development to consider the issues of finding, developing, nurturing, and retaining leaders and to debate several different solutions.
At the Teacher Performance Assessment Forum Gene Wilhoit and other presenters will outline the reasons why the Performance Assessment for California Teachers (PACT) initiative is so important for the profession, provide details of the initiative, and share early findings of the work that has already been accomplished in California.
Watch for more details about the exciting speakers and topics that will covered at the 62nd Annual Meeting & Exhibits in Atlanta.
AACTE Exhibits Feature Cutting-Edge Technologies and Services.
Click here, to see an updated list of exhibitors and sponsors.
General Information
The American Association of Colleges for Teacher Education (AACTE) is a voluntary association of colleges and universities with undergraduate or graduate programs to prepare
professional educators.
1307 New York Avenue, NW
Suite 300
Washington, DC 20005
For more information, contact Aimee Hall: ahall@aacte.org.
Plan Your AACTE Itinerary Today!
Meeting-at-a-Glance
Click on this link to view the 62nd Annual Meeting & Exhibits Meeting-at-a-Glance
Enjoy an Atlanta Adventure!
Atlanta Travel Guide
Atlanta on a Budget
Atlanta Dining
AACTE Major Forums Feature Timely Topics
AACTE has developed a broad range of Major Forum topics that address the burning issues of the day in teacher education. For 2010, we've added a 13th Forum as an added bonus. Speaker selection and confirmation is being finalized and a complete listing of all Forum topics and presenters will be announced in the next two weeks.
Here's a preview of some of the hot topics planned for the Major Forums at this year's Annual Meeting & Exhibits:
Considering Teacher Quality Policy in the Obama Administration
Friday, February 19, 2010,
2 – 3:30 p.m.
With the first year of President Obama's tenure completed, it is time to review his teacher quality policies and consider implications for the educator preparation profession. A representative of the Obama Administration will present an overview of teacher quality initiatives to date. Panelists will discuss and debate how the four major tenets of the education stimulus funding (building and using common standards and assessments, building and using statewide data systems, improving teacher quality, and strengthening struggling schools), as well as other Administration priorities have contributed to teacher quality policy.
New in 2010 -- Our 13th "Bonus" Forum has been added to Sunday's schedule:
Closing the Achievement Gap: Has NCLB made a difference?
Sunday, February 21, 2010,
2:15 – 3:45 p.m.
The academic disparity between African-American, Hispanic, and White students is one of the most enduring challenges in American education. One of the main goals of No Child Left Behind was to close this achievement gap and make sure all students achieve academic proficiency. However, results from the 2008 administration of the National Assessment of Education Progress (NAEP) call into question whether NCLB is having its intended effect. Panelists in this forum discuss data on student achievement, the underlying causes of these disparities, and promising programs to achieve the goal.
Powering Up Teacher Preparation to Meet the Needs of 21St Century Learners
Friday, February 19, 2010,
2 – 3:30 p.m.
Recent studies show there is a profound gap between the knowledge and skills most students learn in school and the knowledge and skills they need in typical 21st century communities and workplaces. Today's students need not only the basic skills—reading, writing and math—but must also possess a range of applied skills directly related to the workplace, including professionalism, teamwork, oral communication, and ethics and social responsibility.
AACTE is launching an initiative to accelerate the infusion of 21st century skills in teacher education with the publication of a blueprint for action. Find out what your institution can do to ensure that our children have the skills and knowledge to successfully meet the challenges and opportunities of a global economy.
On the Firing Line:
State Teacher Preparation Standards Under Siege
Saturday, February 20, 2010,
12:15 – 1:45 p.m.
Teacher shortages, the proliferation of alternate routes to teaching, and the Race to the Top proposal are among the many factors that have put pressure on states to weaken teacher licensure policies. Panelists at this forum will consider how these factors are impacting the nation's education workforce. They will highlight, in particular, three states where educator preparation and licensure policies have been challenged and where higher education has galvanized to address the challenges.
Educator Preparation: What Does the Future Hold?
Saturday, February 20, 2010,
3:15 – 4:45 p.m.
Some of the most insightful thinkers and prognosticators on education trends will forecast our future in big-picture terms. What will educator preparation—as we now know it—look like in five, ten, twenty years? Are these the 'right' directions? Could our collective will bend the trajectory? Views from state, district, research, and policy perspectives differ, and a lively dialogue among presenters and the audience is assured.
These are just a few of the exciting issues and topics that will be explored at this year's AACTE Annual Meeting & Exhibits. Register before October 30th to take advantage of early-bird discounts and secure your place at the conference that has the most to offer teacher educators.
Thursday, October 22, 2009
North Dakota Humanities Council Event in Minot
Monday, October 26
Mysteria Theater, Mandan
7:00 p.m.
Cash bar and appetizers available
Tuesday, October 27
Aleshire Theatre, MSU Campus, Minot
7:00 p.m.
Cornerboys is collaborative effort between writer Jamieson Ridenhour, artist Ali LaRock, and composer Kevin Smith. The short film tells the dark fairy tale story of Jennifer Lynn, who searches the night streets for home but finds only the rat-eyed and restless Cornerboys. Inspired in equal parts by Christina Rossetti’s Goblin Market, the fairy tales both of the Brothers Grimm and of later practitioners like Tim Burton and Brian Froud, and the gritty urban Gothic fantasies of the 19th century, Cornerboys began life ten years ago as a long poem published in the now-defunct horror ‘zine Whispers from the Shattered Forum. The resurrected version features a dramatic reading illustrated in Ali LaRock’s trademark dark whimsical style, supported by Kevin Smith’s wickedly elfin orchestral score. The final product is ten minutes of devilish color and rhyme.
Jamieson Ridenhour, a scholar of Gothic literature and film, will also discuss Boris Karloff’s connection to North Dakota, and introduce a screening of the classic Universal horror film The Bride of Frankenstein.
For more information, please visit www.nd-humanities.org or call 701.255.3360
Mysteria Theater, Mandan
7:00 p.m.
Cash bar and appetizers available
Tuesday, October 27
Aleshire Theatre, MSU Campus, Minot
7:00 p.m.
Cornerboys is collaborative effort between writer Jamieson Ridenhour, artist Ali LaRock, and composer Kevin Smith. The short film tells the dark fairy tale story of Jennifer Lynn, who searches the night streets for home but finds only the rat-eyed and restless Cornerboys. Inspired in equal parts by Christina Rossetti’s Goblin Market, the fairy tales both of the Brothers Grimm and of later practitioners like Tim Burton and Brian Froud, and the gritty urban Gothic fantasies of the 19th century, Cornerboys began life ten years ago as a long poem published in the now-defunct horror ‘zine Whispers from the Shattered Forum. The resurrected version features a dramatic reading illustrated in Ali LaRock’s trademark dark whimsical style, supported by Kevin Smith’s wickedly elfin orchestral score. The final product is ten minutes of devilish color and rhyme.
Jamieson Ridenhour, a scholar of Gothic literature and film, will also discuss Boris Karloff’s connection to North Dakota, and introduce a screening of the classic Universal horror film The Bride of Frankenstein.
For more information, please visit www.nd-humanities.org or call 701.255.3360
Wednesday, October 21, 2009
Education Commission of the States Awards
Dear ECS Commissioners and Supporters:
Each year the Education Commission of the States (ECS) presents awards to individuals, states and organizations that have made significant contributions to public education. The next awards will be presented at the 2010 National Forum on Education Policy in Portland, Oregon, August 18-20.
We invite you to submit a nomination(s) for one or more of our awards.
The James Bryant Conant Award
Recognizes an individual for outstanding contributions to American education.
The Frank Newman Award for State Innovation
Recognizes states and territories for education improvement efforts that are bold and nonpartisan, and hold valuable lessons for other states.
The ECS Corporate Award
Recognizes a for-profit corporation, nonprofit organization or foundation that has demonstrated a sustained commitment to improving public education in the United States.
The deadline for submissions is December 11, 2009.
Learn more about the awards on our site or review the nomination brochure. If you are ready to submit a nomination, please download the nomination form (Word version or PDF version).
If you have any questions, please contact Heidi Normandin, ECS staff associate of Governance and Committee Relations, at 303.299.3629 or hnormandin@ecs.org.
Thank you for your continued support of the Education Commission of the States!
Click here to unsubscribe
700 Broadway, Suite 810, Denver, CO 80203-3442
Each year the Education Commission of the States (ECS) presents awards to individuals, states and organizations that have made significant contributions to public education. The next awards will be presented at the 2010 National Forum on Education Policy in Portland, Oregon, August 18-20.
We invite you to submit a nomination(s) for one or more of our awards.
The James Bryant Conant Award
Recognizes an individual for outstanding contributions to American education.
The Frank Newman Award for State Innovation
Recognizes states and territories for education improvement efforts that are bold and nonpartisan, and hold valuable lessons for other states.
The ECS Corporate Award
Recognizes a for-profit corporation, nonprofit organization or foundation that has demonstrated a sustained commitment to improving public education in the United States.
The deadline for submissions is December 11, 2009.
Learn more about the awards on our site or review the nomination brochure. If you are ready to submit a nomination, please download the nomination form (Word version or PDF version).
If you have any questions, please contact Heidi Normandin, ECS staff associate of Governance and Committee Relations, at 303.299.3629 or hnormandin@ecs.org.
Thank you for your continued support of the Education Commission of the States!
Click here to unsubscribe
700 Broadway, Suite 810, Denver, CO 80203-3442
Tuesday, October 20, 2009
Pure Energy in Minot, North Dakota
Pure Energy Services (USA), Inc.
Minot, North Dakota Office Grand Opening Agenda
Thursday, October 22nd, 2009
11:00am – Grand Opening Begins
11:45am – Tours of Wireline and Production Testing equipment begin
12:00pm – Lunch begins
1:30pm – Opening Remarks
James Rozell, North Dakota Operations Manager - Pure Energy Services (USA), Inc. - Speakers introduced in order
1:35pm – Speaker Paul DeBonis, President - Pure Energy Services (USA), Inc.
1:40pm – Speaker Governor John Hoeven – North Dakota
1:45pm – Speaker Mayor Curt Zimbelman – Minot, North Dakota
1:50pm – Speaker Terry Zeltinger, President – Minot Magic Fund
1:55pm – Ribbon Cutting Ceremony
James Rozell (North Dakota Operations Manager – Pure Energy Services (USA), Inc.), Paul DeBonis (President- Pure Energy Services (USA), Inc. and the Minot Chamber of Commerce
2:00pm – Closing Remarks
James Rozell, North Dakota Operations Manager - Pure Energy Services (USA), Inc.
2:05pm – Resume equipment tours
8:00pm – Conclusion of Grand Opening festivities
Pure Energy Executives in Attendance –
Kevin Delaney, CEO – Pure Energy Services Limited
Rutger Niers, President, Drilling and US Completion Services - Pure Energy Services Limited
Minot, North Dakota Office Grand Opening Agenda
Thursday, October 22nd, 2009
11:00am – Grand Opening Begins
11:45am – Tours of Wireline and Production Testing equipment begin
12:00pm – Lunch begins
1:30pm – Opening Remarks
James Rozell, North Dakota Operations Manager - Pure Energy Services (USA), Inc. - Speakers introduced in order
1:35pm – Speaker Paul DeBonis, President - Pure Energy Services (USA), Inc.
1:40pm – Speaker Governor John Hoeven – North Dakota
1:45pm – Speaker Mayor Curt Zimbelman – Minot, North Dakota
1:50pm – Speaker Terry Zeltinger, President – Minot Magic Fund
1:55pm – Ribbon Cutting Ceremony
James Rozell (North Dakota Operations Manager – Pure Energy Services (USA), Inc.), Paul DeBonis (President- Pure Energy Services (USA), Inc. and the Minot Chamber of Commerce
2:00pm – Closing Remarks
James Rozell, North Dakota Operations Manager - Pure Energy Services (USA), Inc.
2:05pm – Resume equipment tours
8:00pm – Conclusion of Grand Opening festivities
Pure Energy Executives in Attendance –
Kevin Delaney, CEO – Pure Energy Services Limited
Rutger Niers, President, Drilling and US Completion Services - Pure Energy Services Limited
Monday, October 19, 2009
Minutes for the Legislative Budget Section Meeting in North Dakota
NORTH DAKOTA LEGISLATIVE MANAGEMENT
Minutes of the
BUDGET SECTION
Tuesday, September 15, 2009
Senate Chamber, State Capitol
Bismarck, North Dakota
Senator Ray Holmberg, Chairman, called the
meeting to order at 9:00 a.m.
Members present: Senators Ray Holmberg, Bill
Bowman, Tom Fischer, Tony S. Grindberg, Ralph L.
Kilzer, Karen K. Krebsbach, Elroy N. Lindaas, Tim
Mathern, Carolyn Nelson, David O'Connell, Larry J.
Robinson, Rich Wardner; Representatives Larry
Bellew, Rick Berg, Merle Boucher, Al Carlson, Mark A.
Dosch, Eliot Glassheim, Kathy Hawken, Lee Kaldor,
Matthew M. Klein, Gary Kreidt, Joe Kroeber, Bob
Martinson, Ralph Metcalf, Shirley Meyer, David
Monson, Kenton Onstad, Chet Pollert, Bob Skarphol,
Blair Thoreson, Francis J. Wald, Alon C. Wieland,
Clark Williams
Members absent: Senators Randel Christmann,
Aaron Krauter, Tom Seymour, Bob Stenehjem, John
Warner; Representatives Jeff Delzer, Mary Ekstrom,
Keith Kempenich, James Kerzman, Jon Nelson, Ken
Svedjan, Don Vigesaa
Others present: Jim W. Smith, Legislative
Council, Bismarck
See attached appendix for additional persons
present.
It was moved by Senator O'Connell, seconded
by Senator Robinson, and carried on a voice vote
that the minutes of the June 23, 2009, meeting be
approved as distributed.
STATUS OF THE STATE GENERAL FUND
Chairman Holmberg called on Ms. Pam Sharp,
Director, Office of Management and Budget (OMB), to
present a report on the status of the general fund,
including turnback and use of deficiency
appropriations, and the state's economy, including
information on economic sectors showing growth. A
copy of the information presented is on file in the
Legislative Council office.
Ms. Sharp said the consumer price index (CPI) is
expected to decline an average of .7 percent during
2009 and then increase by 1.6 percent during 2010
and 2 percent during 2011. She said the CPI for
July 2009 was a negative 2.1 percent, down from a
negative 1.4 percent in June 2009 and significantly
lower than the 5.6 percent of one year ago. She said
the average yield on a three-month Treasury bill
during the second quarter of 2009 was .18 percent,
four basis points lower than the previous quarter and
substantially lower than the 1.39 percent average for
2008. She said North Dakota's unemployment rate for
July 2009 was 3.9 percent, considerably lower than
the national rate of 9.7 percent, but up slightly from
the July 2008 rate of 3.1 percent. She said North
Dakota oil production increased to nearly 215,000
barrels per day in June 2009 and continues to
increase. She said the average price for North
Dakota crude oil was $43 per barrel in April 2009, $51
per barrel in May 2009, and $61 per barrel in
June 2009. She said the current oil price is $62 per
barrel and the rig count is 50.
FINAL 2007-09 BIENNIUM GENERAL
FUND REVENUES AND EXPENDITURES
Ms. Sharp presented the following information on
the final status of the general fund for the 2007-09
biennium:
Unobligated general fund
balance - July 1, 2007
$295,541,176
Add
General fund collections
through June 30, 2009
$2,715,263,379
Cash certifications and
adjustments
42,793
General fund balance
obligated for authorized
carryover from 2005-07
17,108,049
Total general fund revenue for
the 2007-09 biennium
2,732,414,221
General fund turnback for the
2007-09 biennium
70,949,621
Total available 3,098,905,018
Less
2007-09 biennium general fund
ongoing appropriations
(2,317,447,307)
2007-09 biennium general fund
one-time appropriations
(139,526,649)
Contingent appropriation
(Section 50 of SB 2200)
(5,000,000)
Authorized carryover
expenditures from 2005-07
(17,108,049)
Emergency and supplemental
appropriations
(127,156,319)
Adjustments 80,750
Total appropriations (2,606,157,574)
Transfers and adjustments
Adjustments 119,034
Nonappropriated transfers (6,086,416)
Transfer to the budget
stabilization fund
(124,936,548)
Total transfers and adjustments (130,903,930)
Ending general fund balance -
June 30, 2009
$361,843,514
Budget Section 2 September 15, 2009
Ms. Sharp said after the transfer of $124,936,548
from the general fund to the budget stabilization fund
in July 2009, the balance in the budget stabilization
fund is $324,936,548. She said the balance in the
budget stabilization fund is limited to 10 percent of the
total 2009-11 biennium appropriations. She said the
transfer made from the general fund to the budget
stabilization fund was the maximum allowed.
Ms. Sharp presented the following information on
the final status of the permanent oil tax trust fund for
the 2007-09 biennium:
Permanent oil tax trust fund balance - July 1, 2007 $143,270,662
Add
Revenue collections through June 30, 2009 484,256,596
Total available for the 2007-09 biennium 627,527,258
Less expenditures and transfers
Authorized by the 2007 Legislative Assembly (137,550,241)
Authorized by the 2009 Legislative Assembly (250,000)
Permanent oil tax trust fund balance - June 30, 2009 $489,727,017
2007-09 Biennium General Fund Turnback
Ms. Sharp presented information on the 2007-09
biennium unspent general fund appropriations by
agency. She said 2007-09 unspent general fund
appropriation authority totaled $70.9 million. She said
the Department of Human Services had the largest
unspent amount of $54.4 million, of which
$33.2 million was the result of additional funding
received due to the increase in the federal medical
assistance percentage (FMAP) and child support
pursuant to the American Recovery and Reinvestment
Act of 2009.
Representative Carlson expressed concern that
2009-11 biennium general fund appropriations are
less due to the receipt of federal stimulus funds. He
asked OMB to provide information at the next Budget
Section meeting on the estimated effects that the
anticipated reduction in federal fiscal stimulus funds
will have on general fund appropriation requirements
for the 2011-13 biennium. Representative Skarphol
requested the information be updated periodically and
reported to the Budget Section throughout the interim.
Chairman Holmberg asked OMB to provide this
information to the Budget Section at future meetings.
2007-09 Biennium Emergency and
Supplemental Appropriations
Ms. Sharp presented information on the 2007-09
emergency and supplemental appropriation amounts
by agency. She said 2007-09 emergency and
supplemental appropriations totaled $127.2 million, of
which $81.9 million was spent by June 30, 2009,
including $59.9 million provided for weather-related
grants pursuant to Senate Bill No. 2012. She said
$45.2 million of the 2007-09 emergency and
supplemental appropriations will be continued in the
2009-11 biennium.
STATUS OF THE 2009-11 BIENNIUM
GENERAL FUND
Ms. Sharp presented the following information on
the status of the state general fund for the 2009-11
biennium based on revenue collections through
August 2009:
Unobligated general fund
balance - July 1, 2009
$361,843,514
Add
General fund collections
through August 2009
$505,208,957
Forecasted general fund
revenue for the remainder of
the 2009-11 biennium
2,468,679,065
Total estimated general fund
revenue for the 2009-11
biennium
2,973,888,022
Balance obligated for authorized
carryover from the 2007-09
biennium
76,383,528
Estimated total available 3,412,115,064
Less
2009-11 biennium general fund
ongoing appropriations
(2,970,380,754)
2009-11 biennium general fund
one-time appropriations
(278,984,727)
Balance obligated for
authorized carryover from the
2007-09 biennium
(76,383,528)
Estimated deficiency requests (3,823,000)
Total appropriations and
estimated deficiency requests
(3,329,572,009)
Estimated general fund
balance - June 30, 2011
$82,543,055
Ms. Sharp said the Tax Department anticipates
2009 Senate Bill No. 2402 relating to the homestead
tax credit program will result in a 2009-11 deficiency
request of approximately $3.8 million.
Ms. Sharp presented the following information on
the status of the permanent oil tax trust fund for the
2009-11 biennium:
Beginning permanent oil tax trust fund balance -
July 1, 2009
$489,727,017
Add
Forecasted revenues for the 2009-11 biennium
(based on 2009 legislative forecast assumptions for
oil price and production)
323,092,000
Total estimated funds available for the 2009-11
biennium
812,819,017
Less expenditures and transfers
Transfer to the general fund pursuant to
2009 HB 1015
(140,000,000)
Transfer to the general fund for mill levy reduction
program pursuant to 2009 HB 2199
(295,000,000)
Transfer to the property tax relief sustainability fund
pursuant to 2009 HB 2199
(295,000,000)
Appropriations pursuant to 2009 HB 1015, 1305,
and 1394 and SB 2003 and 2020
(16,175,100)
Estimated permanent oil tax trust fund balance -
June 30, 2011
$66,643,917
Budget Section 3 September 15, 2009
In response to a question from Representative
Wald, Ms. Sharp said the 2009 Legislative Assembly
provided for a transfer of $295 million from the
permanent oil tax trust fund to the property tax relief
sustainability fund. She said the transfer will be made
in July 2010, but the funds will not be spent until
appropriated by the 2011 Legislative Assembly.
Ms. Sharp presented information on general fund
revenue collections for August 2009 and the 2009-11
biennium to date. She said revenues collected for the
biennium to date are 3.3 percent more than the
legislative forecast. She said the increase is primarily
due to increases in oil and gas production tax and oil
extraction tax collections, which exceeded the
biennium-to-date legislative forecast by $9.5 million
and $9.1 million, respectively. She said biennium-todate
motor vehicle excise tax collections also
exceeded estimates by $3.1 million, or 51.3 percent.
She said sales tax collections were $8.5 million, or
15.6 percent less than the legislative forecast for the
month of August. She said biennium-to-date sales tax
collections were $7.9 million, or 7.4 percent less than
the legislative forecast.
In response to a question from Representative
Carlson, Ms. Sharp said the Attorney General's office
deposits lottery revenue in the general fund in June of
each fiscal year.
ECONOMIC SECTORS SHOWING GROWTH
Ms. Sharp presented information on the state's
economy, including information on economic sectors
showing growth. She said the state's gross domestic
product is the value added in production by the labor
and capital located in the state. She said all of the
state's industry sectors grew as the state gross
domestic product increased from $17.8 billion in 2000
to $31.2 billion in 2008.
In response to a question from Representative
Skarphol, Ms. Sharp said three industry sectors--
agriculture/forestry/fishing/hunting, manufacturing,
and mining--increased as a percentage of the total
state gross domestic product while other industry
sectors either stayed the same or decreased slightly.
IRREGULARITIES IN THE FISCAL
PRACTICES OF THE STATE
Pursuant to North Dakota Century Code (NDCC)
Section 54-14-03.1, Ms. Sharp presented information
on irregularities in the fiscal practices of the state. A
copy of the information presented is on file in the
Legislative Council office. She said the state
agencies with fiscal irregularities include:
Agency Amount Reason
Office of Management
and Budget
$500 Additional workload to run
extra payrolls for activated
National Guard members
during spring flooding
Department of
Commerce
$625 Temporary additional
workload
North Dakota Vision
Services - School for the
Blind
$3,450 Additional work performed
in June by two teachers at
the School for the Blind
outside of their nine-month
teaching contracts
Council on the Arts $5,400 Additional work performed
by two employees related
to a book on North Dakota
folklore to be used as a
textbook for various
anthropology classes
State Department of
Health
$13,782 Severance package
EMPLOYEE BONUSES
Ms. Sharp presented information on the number of
employees receiving bonuses above the 25 percent
limitation pursuant to NDCC Section 54-06-30 and
Section 1 of 2009 House Bill No. 1030. She said
agencies may not give bonuses to more than
25 percent of their employees except in special
circumstances approved by Human Resource
Management Services (HRMS). She said HRMS is
required to report any exceptions to the Budget
Section. She said the law became effective August 1,
2009, and since then no agency has exceeded the
25 percent limitation on the number of employees
receiving bonuses.
MAJOR TRUST FUNDS
Ms. Sharp presented information on the status of
the state's major trust funds, including information on
each fund's current balance compared to two years
ago and the effect of any investment gains or losses
on each fund during the past two years. She
presented a schedule providing the beginning
balance, revenues, expenditures, transfers, and
ending balance of the permanent oil tax trust fund,
foundation aid stabilization fund, budget stabilization
fund, common schools trust fund, and the lands and
minerals trust fund. A copy of the information
presented is on file in the Legislative Council office.
Ms. Sharp said the principal of the permanent oil
tax trust fund ($489.7 million) and the foundation aid
stabilization fund ($65.8 million) on June 30, 2009, are
invested by the State Treasurer's office in certificates
of deposit and the earnings are credited to the general
fund. She said these funds have not experienced
investment gains or losses.
Ms. Sharp said the budget stabilization fund
principal ($324.9 million) on June 30, 2009, is
invested by the State Investment Board in a low-risk
portfolio consisting of certificates of deposit, cash
equivalents, bonds, and bank loans. She said
investment earnings of $1.7 million were credited to
the general fund during the 2007-09 biennium, and
the fund experienced a $9.9 million market decline in
the last 18 months of the 2007-09 biennium. She said
most of the losses were unrealized and would not
affect the principal balance of the fund if the assets
are held until maturity.
Ms. Sharp said the common schools trust fund
balance on June 30, 2009, was $856.5 million. She
said the fund is invested by the Land Department in
Budget Section 4 September 15, 2009
stocks, bonds, farm loans, and other investment
assets managed to preserve purchasing power and
maintain stable distributions to fund beneficiaries.
During the 2007-09 biennium, she said, the fund
experienced net realized capital losses of
$42.5 million and net unrealized capital losses of
approximately $184.8 million. She said the fund
provided schools with $66.8 million during the
2007-09 biennium and anticipates providing the
estimated $77.2 million for the 2009-11 biennium.
Ms. Sharp said the lands and minerals trust fund
balance on June 30, 2009, was $32.1 million. She
said the fund is invested by the Land Department in
short-term, low-risk, fixed income investments, such
as money market accounts, Bank of North Dakota
certificates of deposit, and an operating loan to the
Mill and Elevator. The fund did not experience any
investment losses during the 2007-09 biennium.
FEDERAL FISCAL STIMULUS
FUNDING FOR ADMINISTRATION
Ms. Sharp presented information regarding federal
fiscal stimulus funds retained by agencies for
administration purposes. She provided a schedule of
American Recovery and Reinvestment Act of 2009
funds appropriated by agency for the 2009-11
biennium and an estimate of the portion of the funds
appropriated retained for administration. A copy of
the information presented is on file in the Legislative
Council office. Of the $571.3 million in federal fiscal
stimulus funds appropriated for the 2009-11 biennium,
she said, approximately $6.1 million, or 1 percent will
be retained for administration by the various agencies.
She said administrative costs for some agencies are
allowed based on a percentage of the funds awarded.
She said $289,494 of federal fiscal stimulus funding
was appropriated to OMB for general administration of
federal fiscal stimulus funds.
Chairman Holmberg asked OMB to provide the
Budget Section with details of how the $1.2 million
provided to the Department of Commerce for the
administration of the state energy program is being
used.
In response to a question from Representative
Skarphol, Ms. Sharp said Job Service North Dakota
may still accept certain stimulus funding previously
unclaimed by the agency. She said she would
provide information to the Budget Section regarding
stimulus funding available to the state that was not
accepted.
In response to a question from Representative
Boucher, Chairman Holmberg said the Employee
Benefits Programs Committee receives reports on the
retirement funds of the Teachers' Fund for Retirement
and the Public Employees Retirement System.
Chairman Holmberg asked the Legislative Council
staff to provide the most recent minutes of the
Employee Benefits Programs Committee to the
members of the Budget Section.
In response to a question from Representative
Wald, Ms. Sheila Peterson, Director, Fiscal
Management Division, Office of Management and
Budget, said the state receives stimulus funding on a
reimbursement basis. She said expenditures for
federal fiscal year 2009 are exceeding estimates. She
said the majority of the stimulus funds were
anticipated to be spent in 2010 and 2011.
Chairman Holmberg requested OMB and the
Legislative Council staff to compile information
regarding federal fiscal stimulus funding provided
directly to political subdivisions for the next Budget
Section meeting.
VETERANS' HOME SPECIAL
FUND BALANCE
Ms. Sharp presented information regarding the
Veterans' Home July 1, 2009, special fund balance
compared to the amount anticipated in the Veterans'
Home 2009-11 budget. A copy of the information
presented is on file in the Legislative Council office.
She said the Veterans' Home special fund balance of
$3.6 million exceeded the amount anticipated in the
Veterans' Home 2009-11 budget by $322,774. She
said the additional funds were due to the timing of
revenues and expenditures and an increase of $4 per
day in the Veterans' Administration per diem.
2007-09 CAPITAL CONSTRUCTION
AND INFORMATION
TECHNOLOGY CARRYOVER
Ms. Sharp presented information on 2007-09
capital construction and information technology
project funding authorized by the Capital Construction
Carryover Committee to continue to the 2009-11
biennium. A copy of the information presented is on
file in the Legislative Council office. She said
authorization to continue funding for projects totaling
$63.7 million has been approved by the Capital
Construction Carryover Committee. Of this amount,
she said, $6.8 million is from the general fund,
$36.9 million is from federal funds, and $20 million is
from special funds. She said the Department of
Human Services' Medicaid management information
system project carryover totaling $31.7 million, of
which $2.4 million is from the general fund, represents
nearly one-half of the capital construction carryover.
DISTRIBUTION OF
GENERAL SALARY INCREASES
Ms. Sharp presented information regarding a
summary of general salary increase methods used by
agencies to distribute salary increases among
employees and the effect these distribution methods
have had on salary compression issues of agencies.
She provided a summary by agency of the number of
employees receiving a general salary increase,
including the minimum, maximum, and average
percentage increase received per employee. A copy
of the information presented is on file in the
Legislative Council office. She said 6,848 of the 7,266
employees at state agencies receiving the general
salary increase received increases ranging from
.10 percent to 13.7 percent.
Budget Section 5 September 15, 2009
EMPLOYEE PAY AND
MARKET EQUITY CONCERNS
Ms. Sharp presented information on selected
agencies that have had pay and market equity
concerns, including specific information on how salary
equity increases have affected the salaries of the
affected employees and how the general salary
increase funds were distributed to these and other
employees within the agency, including the range of
percentage increases provided. She provided a
summary by agency of the number of employees
receiving equity pool increases. A copy of the
information presented is on file in the Legislative
Council office. She said 34 agencies received salary
equity funding, and of the 6,681 employees in the
agencies receiving the funding, 4,474 employees
received salary equity increases ranging from
.02 percent to 24.28 percent.
In response to a question from Representative
Carlson, Ms. Sharp said agencies applied the
5 percent general salary increases before awarding
salary equity increases.
In response to a question from Representative
Skarphol, Ms. Sharp said because agencies with
market equity concerns were targeted, OMB
determined the salary equity increases were not
subject to the administrative rule limiting salary
increases to 20 percent. She said certain employees
in targeted agencies, such as the Parks and
Recreation Department and the Department of
Mineral Resources of the Industrial Commission,
received the highest average percentage salary equity
increases of 22.48 percent and 24.28 percent,
respectively.
Ms. Sharp provided a summary of classified
employees by quartile for selected agencies for 2008
and 2009. She said the chart demonstrates the
effectiveness of the equity increases since the
percentage of employees in the middle and upper
quartile of their pay range increased subsequent to
the general salary and salary equity increases.
RISK MANAGEMENT WORKERS'
COMPENSATION PROGRAM
Mr. Tag Anderson, Risk Management Director,
Office of Management and Budget, presented
information regarding the status of the risk
management workers' compensation program
pursuant to NDCC Section 65-04-03.1(5). He said the
2001 Legislative Assembly established a single
workers' compensation account for all state entities.
He said the Risk Management Division administers
the program. He said for coverage periods beginning
July 1, 2001, the Risk Management Division entered
deductible contracts with Workforce Safety and
Insurance for 143 consolidated accounts. He said the
deductible amount selected was $100,000 per claim.
He provided the following results for the eight
coverage years beginning July 1, 2001, through
June 30, 2009:
Nonconsolidated guaranteed
cost program premium and
assessments
$35,565,156
Risk Management Division
deductible premium paid to
Workforce Safety and Insurance
$12,853,988
Risk Management Division paid
losses through June 30, 2009
11,437,436
Risk Management Division
pending losses (reserves)
2,556,909
Risk Management Division
combined deductible premium
and losses
$26,848,333
Estimated savings for an
eight-year period
$8,716,823
Mr. Anderson said the Risk Management Division
has implemented programs to reduce premium rates
to agencies with effective risk management strategies.
A copy of the report is on file in the Legislative Council
office.
AGENCY REQUESTS AUTHORIZED
BY THE EMERGENCY COMMISSION
Chairman Holmberg directed the committee to
consider agency requests which have been
authorized by the Emergency Commission and
forwarded to the Budget Section pursuant to NDCC
Section 54-16-04.1. The information relating to the
requests was provided to Budget Section members
prior to the meeting and is on file in the Legislative
Council office.
It was moved by Senator Wardner, seconded
by Senator Lindaas, and carried on a roll call vote
that pursuant to NDCC Section 54-16-04.1, the
Budget Section approve the following requests
which have been approved by the Emergency
Commission:
• Department of Commerce (Request #1703) -
To increase special funds spending
authority by $258,858 to accept federal
funds from the federal American Recovery
and Reinvestment Act of 2009 enhanced
government energy assurance and
resiliency grant for the creation and testing
of standardized energy assurance and
resiliency plans to use during energy
emergencies and supply disruptions.
• Department of Commerce (Request #1704) -
To increase special funds spending
authority by $615,000 to accept federal
funds from the United States Department of
Energy under the federal American
Recovery and Reinvestment Act of 2009 to
provide rebates for consumers purchasing
Energy Star appliances.
• Department of Human Services (Request
#1705) - To increase special funds spending
authority by $11,062,000 to accept federal
funds from the federal American Recovery
and Reinvestment Act of 2009 for grant
funds for the temporary assistance for
needy families (TANF) program increased
Budget Section 6 September 15, 2009
caseload from 2007 to 2008 ($510,000), onetime
funds for subsidized employment costs
to assist individuals exiting the TANF
program or to avoid entering the program
($10,345,000), and administrative funds for
the supplemental nutrition assistance
program ($207,000).
• State Department of Health
(Request #1708) - To increase special funds
spending authority by $4,920,000 to accept
federal funds from the Centers for Disease
Control and Prevention for the salaries and
wages line item ($480,000), the operating
expenses line item ($640,000), the capital
assets line item ($200,000), and the grants
line item ($3,600,000) for pandemic influenza
preparedness and a vaccination campaign.
Senators Holmberg, Bowman, Krebsbach,
Lindaas, Mathern, Nelson, O'Connell, Robinson, and
Wardner and Representatives Berg, Hawken, Kaldor,
Klein, Kreidt, Kroeber, Martinson, Metcalf, Meyer,
Onstad, Pollert, Wald, and Williams voted "aye."
Senators Fischer, Grindberg, and Kilzer and
Representatives Bellew, Carlson, Dosch, Monson,
Skarphol, Thoreson, and Wieland voted "nay."
WILLISTON STATE COLLEGE - CHANGE
IN SCOPE OF PROJECT AND INCREASE
IN AUTHORIZATION
Dr. Ray Nadolny, President, Williston State
College, presented information regarding a request for
Budget Section approval to expand the scope and
increase the authorization for the science laboratory
project from $1.61 million to $2.2 million pursuant to
NDCC Section 48-01.2-25. A copy of the information
presented is on file in the Legislative Council office.
He said the Legislative Assembly authorized
$1.61 million from the general fund to renovate the
science laboratory at Williston State College. He said
Williston State College is seeking Budget Section
approval to change the scope of the project from a
renovation to an addition and increase the
authorization from $1.61 million to $2.2 million. He
said the renovation proposal has presented serious
challenges and would cost more per square foot than
a newly constructed science center addition. He said
providing for the addition instead of renovating the
existing laboratory will not only expand current
science offerings but will maximize funds provided by
the state through additional community financial
support. He said the Williston State College
Foundation has committed its resources to the project
and with the city of Williston will conduct a capital
campaign for the additional $590,000 necessary for
the addition.
It was moved by Representative Wald,
seconded by Senator Robinson, and carried on a
roll call vote that pursuant to NDCC Section
48-01.2-25, the Budget Section approve the
Williston State College request to expand the
scope and increase the authorization of the
science laboratory project to spend $2.2 million on
the project. Senators Holmberg, Bowman, Fischer,
Grindberg, Kilzer, Krebsbach, Lindaas, Mathern,
Nelson, O'Connell, Robinson, and Wardner and
Representatives Bellew, Berg, Carlson, Dosch,
Hawken, Kaldor, Klein, Kreidt, Kroeber, Martinson,
Metcalf, Meyer, Monson, Onstad, Pollert, Skarphol,
Thoreson, Wald, Wieland, and Williams voted "aye."
No negative votes were cast.
LOCAL FUNDS - HIGHER EDUCATION
CONSTRUCTION PROJECTS
Chairman Holmberg called on Ms. Laura Glatt,
Vice Chancellor for Administrative Affairs, North
Dakota University System, to present information
regarding the sources of local funds received for
construction projects of entities under the State Board
of Higher Education pursuant to NDCC Section
15-10-12.3. A copy of the information presented is on
file in the Legislative Council office. She said four
state-funded projects--Bismarck State College,
University of North Dakota, North Dakota State
University, and Minot State University--authorized for
the 2007-09 biennium and two projects--North Dakota
State University Main and North Central Research
Centers--continued from the 2005-07 biennium
required local matching funds. She said two projects--
the 2007-09 Schafer Hall renovation project at
Bismarck State College and the 2005-07 agronomy
laboratory and greenhouse carryover project at the
North Central Research Center--were completed
during the 2007-09 biennium within the overall
appropriation authority and within the local match
requirements. She said the Schafer Hall renovation
project totaled $799,560, of which $310,860 was
provided through tuition revenues and the agronomy
laboratory and greenhouse project totaled $1,953,752,
of which $1,113,752 was from fundraising and
$440,000 from state bonding proceeds. She said the
projects at the University of North Dakota, North
Dakota State University, Minot State University, and
North Dakota State University Main Research Center
were not completed in the 2007-09 biennium and will
be continued to the 2009-11 biennium.
MAJOR HIGHER EDUCATION CAPITAL
CONSTRUCTION PROJECTS
Ms. Glatt presented information regarding an
update on the status of major higher education capital
construction projects currently in progress. She
provided a schedule of major state-funded higher
education capital construction projects during the
2007-09 biennium and the 2009-11 biennium,
including the original appropriation, authorization
adjustments, expenditures to date, and remaining
authority for each of the projects. A copy of the
information presented is on file in the Legislative
Council office. She said all but two of the projects
listed are within their approved authorization limits.
She said Minot State College spent $1,195 more than
authorized on its dome floor project and Dakota
Budget Section 7 September 15, 2009
College at Bottineau spent $12,921 more than
authorized on its steamline replacement project. She
said in both cases the additional costs were financed
by nonstate funds. She said Minot State College used
indirect cost-recovery funds from federal grants and
Dakota College at Bottineau used housing reserves
for the additional cost.
Chairman Holmberg asked the North Dakota
University System continue to update the Budget
Section regarding the status of major higher education
capital construction projects and that the North Dakota
University System provide the updated information at
the March 2010 Budget Section meeting.
In response to a question from Senator Mathern,
Ms. Glatt said the State Board of Higher Education
policy requires a campus that anticipates exceeding
its funding authorization on a capital project to request
additional authority from the board. In addition to
board approval, she said, NDCC Section 48-01.2-25
precludes a state agency or institution from
significantly changing or expanding a public
improvement beyond what has been approved by the
Legislative Assembly unless the Legislative Assembly
or the Budget Section approves the change or
expansion of the project or any additional
expenditures for the project. She said when the total
project cost exceeds $250,000, the campus is also
required to return to the board after receiving Budget
Section approval to provide the board with funding
details of the change. She said the approval process
for a change in the scope of a project or increased
authorization of a project is the same whether a
project is funded by state funds or private funds.
Ms. Glatt said the University System office
anticipates the presidents' houses currently under
construction on the campuses of North Dakota State
University and the University of North Dakota will
exceed their respective authorizations. She said the
projects are currently under review by the State Board
of Higher Education. She said if the board approves
increases to the authorizations for the presidents'
houses, it is likely the campuses will be requesting
approval of the increases at the next Budget Section
meeting.
Chairman Holmberg requested information
regarding the presidents' houses at North Dakota
State University and the University of North Dakota be
provided to the members of the Budget Section prior
to the next Budget Section meeting.
In response to a question from Representative
Boucher, Ms. Glatt said the ongoing repair,
maintenance, and eventual replacement of facilities
gifted to University System campuses is addressed on
a case-by-case basis. She said generally when a
facility is gifted to the state, it becomes state property
and maintenance costs are the state's responsibility.
GAME AND FISH DEPARTMENT LAND
ACQUISITION REQUESTS
Mr. Roger Rostvet, Deputy Director, Game and
Fish Department, presented information regarding
land acquisitions in Morton and Grand Forks Counties
that require Budget Section approval pursuant to
NDCC Section 20.1-02-05.1. He said the request to
purchase property in Pembina County included on the
agenda is being withdrawn because the property will
be purchased by Central Power Cooperative for
Department of Transportation mitigation. He said the
Morton and Grand Forks Counties land acquisitions
rank high on the department's list of potential land
purchases and were identified in information provided
to the Appropriations Committees of the
2009 Legislative Assembly. He said the department
pays in lieu of property tax on land and manages
property for hunting and wildlife. He said the
Governor has approved the purchase of both
properties.
Mr. Rostvet provided background information and
a map of the proposed land acquisition in Morton
County. He said the property consists of 65.35 acres
of land adjacent to and intermingled with the Oahe
Wildlife Management Area. He said the $105,000
purchase price ($1,600 per acre) is based on an
appraisal done by ALied Appraisals, Inc., of Bismarck.
A copy of the information and map is on file in the
Legislative Council office.
In response to a question from Senator Robinson,
Mr. Rostvet said the property is zoned as recreational
and potential other uses include single-family homes
and an all-terrain vehicle or motocross track. He said
either of these uses would conflict with the
department's rifle and pistol range and the wildlife
management area.
In response to a question from Senator Bowman,
Mr. Rostvet said some mining of gravel occurred on
the property prior to reclamation laws and spoil banks
exist on the property. He said areas mined
subsequent to the reclamation laws have been
reclaimed. He said the department has determined
that no additional reclamation requirements exist.
Mr. Rostvet provided background information and
a map of the proposed land acquisition in Grand Forks
County. He said the property consists of 160 acres of
land and is adjoined on three sides by Prairie Chicken
Wildlife Management Area. He said the land, in an
area locally known as the Alkali Flats, is owned by
Paul and Lula Bry and is one of only two areas in the
state that have viable populations of prairie chickens.
He said 129 acres of the property is currently under a
conservation reserve program (CRP) contract until
2018. He said the owners have offered to sell the
property to the Game and Fish department for
$80,000 ($500 per acre) based on an appraisal done
by Alerus Appraisals of Grand Forks. A copy of the
information and map is on file in the Legislative
Council office.
In response to a question from Senator Mathern,
Mr. Rostvet said the department chooses a local or
regional appraiser and in this case the seller and the
department mutually agreed upon a local appraiser
with experience in land appraisals.
In response to a question from Representative
Boucher, Mr. Rostvet said the state will retain the
CRP contract; however, because the state already
Budget Section 8 September 15, 2009
owns in excess of 50,000 acres under contract, the
department is not allowed to accept the payments.
He said the CRP contract is compatible with the
department's plan for the future use of the land, so the
department would remain in compliance with the
contract.
It was moved by Senator Robinson, seconded
by Representative Wald, and carried on a roll call
vote that pursuant to NDCC Section 20.1-02-05.1,
the Budget Section approve the Game and Fish
Department purchase of 65.35 acres in Morton
County and 160 acres in Grand Forks County.
Senators Holmberg, Fischer, Grindberg, Kilzer,
Krebsbach, Lindaas, Mathern, Nelson, Robinson, and
Wardner and Representatives Bellew, Berg, Boucher,
Carlson, Dosch, Glassheim, Hawken, Kaldor, Kreidt,
Martinson, Metcalf, Monson, Onstad, Skarphol,
Thoreson, Wald, Wieland, and Williams voted "aye."
Senator Bowman and Representatives Klein, Meyer,
and Pollert voted "nay."
DEPARTMENT OF HUMAN SERVICES
Status of Medicaid Management
Information System
Ms. Carol K. Olson, Executive Director,
Department of Human Services, presented
information regarding the status of the Medicaid
management information system project. She said
the go-live date for the new system has been delayed
to April 2011.
Ms. Jennifer Witham, Director, Information
Technology Services, Department of Human Services,
presented information regarding a request for Budget
Section approval to spend $2,172,584 of Medicaid
management information system project contingency
funds pursuant to Section 4 of 2007 Senate Bill
No. 2024. She said the 2005 Legislative Assembly, in
House Bill No. 1012, appropriated $29,188,859, of
which $3,667,820 was state matching funds from the
permanent oil tax trust fund, to the Department of
Human Services to rewrite the Medicaid management
information system. The 2007 Legislative Assembly,
in Senate Bill No. 2024, provided additional funding of
$31,072,641, of which $3,643,133 is state matching
funds from the general fund, for the project. The
department did not spend all of the state matching
funds during the 2005-07 biennium and was
authorized to continue the unspent funds into the
2007-09 biennium for the project. As a result, the
department used these funds to obtain additional
federal matching funds of $2,267,871 for the project.
Total funding available for the project is:
State
Match
Federal
Funds Total
2005-07 appropriation $3,667,820 $25,521,039 $29,188,859
2007-09 appropriation 3,643,133 27,429,508 31,072,641
Additional federal
matching funds
2,267,871 2,267,871
Total $7,310,953 $55,218,418 $62,529,371
Ms. Witham said hardware and software for the
project were purchased by the Information
Technology Department (ITD) with loan proceeds
approved by the Budget Section in October 2007.
She said the ITD loan will be repaid from collections of
a hosting fee charged to the Department of Human
Services. She said the hosting fee was initially
budgeted as an operating expense; however, due to
the delayed schedule, the fee must now be included in
project costs. She said the department must also pay
the annual software maintenance fee for the
purchased software. She said the department will
begin paying these fees in November 2009. She said
of the $2,172,584 requested, $512,550 is from the
general fund and the remainder from federal funds. A
copy of the information presented is on file in the
Legislative Council office.
In response to a question from Representative
Monson regarding the payment of an annual software
maintenance fee for software not yet placed in
service, Ms. Witham said ITD requested, but was
unable to negotiate, a waiver of the fee from IBM and
Oracle.
In response to a question from Senator Kilzer,
Ms. Witham said the project is reimbursed at
90 percent, but the hosting fee was budgeted as an
operational cost and therefore is reimbursed at
75 percent. She said project software costs are also
reimbursed at 75 percent.
In response to a question from Representative
Skarphol, Ms. Witham said the original appropriation
included a 10 percent contingency, or approximately
$5.6 million. Based on the project's 90 percent match,
she said, the general fund portion of the 10 percent
contingency is approximately $560,000. She said the
department is requesting $512,550 of the general fund
portion of the contingency funding. She said the
$512,550 is needed to match the federal portion of the
contingency.
Ms. Witham provided the following project funding
summary through June 2009:
Description Budget
Spent
Through
June 2009 Remaining
General fund $3,643,133 $2,647,098 $996,035
Federal funds 55,218,418 28,584,567 26,633,851
Other funds 3,667,820 1,063,431 2,604,389
Total $62,529,371 $32,295,096 $30,234,275
Ms. Witham said the amount remaining has been
continued into the 2009-11 biennium.
In response to a question from Representative
Pollert, Ms. Witham said the department is negotiating
with the vendor--Affiliated Computer Services (ACS)--
regarding the additional costs associated with keeping
the current system updated beyond the scheduled
project completion date included in the contract. She
said the contract does not include a penalty clause but
includes sections that address remedies.
Ms. Witham provided information regarding other
states' Medicaid management information system
implementation projects. In July, she said, the state of
Nebraska canceled a contract with its provider when it
was determined the provider could not deliver on the
product. She said both Oregon and Maine have new
Budget Section 9 September 15, 2009
systems in place but are experiencing problems with
the accuracy of the payments. She said the state of
Washington has been using a multiphased approach
to implementing its new system and has experienced
delays in each phase implemented.
In response to a question from Representative
Skarphol, Ms. Witham said ACS was not the project
vendor in the states experiencing difficulties. She said
the Enterprise System, which is the new system
brought to the market by ACS, is also being
implemented in Alaska and New Hampshire.
In response to a question from Senator Mathern,
Ms. Witham said federal changes known at the time of
the bid were included in the request for proposal.
However, she said, new federal changes would be
implemented by change orders to the contract.
In response to a question from Representative
Monson, Ms. Witham said improved edits on claims
are expected to lead to savings with the new system.
Mr. Mark Boxer, Senior Vice President of Global
Technology Services, Affiliated Computer Services,
presented information regarding reasons for the delay
in the implementation of the Medicaid management
information system, improvements ACS has made in
its management of the project, and its effort to better
communicate with the Department of Human
Services. A copy of the information presented is on
file in the Legislative Council office.
Mr. Boxer said the delays were caused by a
combination of circumstances. He said ACS
augmented its own application development group
with a partner that did not deliver code of an
acceptable commercial quality. He said ACS had to
redevelop modules not delivered by the subcontractor
which required additional time. He said the Medicaid
management information system effort also includes a
significant number of parallel activities. He said to
perform these activities, ACS has had to sequence
the work across modules and interfaces. He said due
to the complexity of the system, testing and making
corrections is taking longer than expected.
Mr. Boxer said a project of this magnitude and
complexity poses many risks. He said ACS cannot
guarantee there will not be additional delays. He said
ACS has taken steps to manage those risks that
include improved development and testing, more
rigorous program management, deliberate quality
assurance measures, and improved talent deployment
and staffing.
Mr. Boxer said ACS will work to improve
communication with the Department of Human
Services team and plans to meet with the team every
two weeks. He said the meetings will review specific
metrics and will provide the team an opportunity to
review ACS's progress.
Mr. Boxer said ACS intends to honor its
agreement. He said his appearance before the
Budget Section is to convey ACS's commitment to
completing the development and implementation of
the new Medicaid management information system.
In response to a question from Senator Mathern,
Mr. Boxer said the underlying causes for the delay in
implementation include the subcontractor's inability to
deliver quality code, the complexity of the system, and
inaccurate time estimation relating to the project.
In response to a question from Representative
Pollert, Mr. Boxer said the North Dakota project will
include additional functionality but is similar to the
projects in New Hampshire and Alaska. He said
similar factors are also causing delays in the
development of systems in those states as well. He
said there is a core set of code that is being
developed to be used by all of the states. He said
ACS will start with this core set of code and add the
additional functionality required for each state. He
said ACS is committed to meeting the April 2011
completion date. He said there continues to be risk,
but ACS has implemented methods and mechanisms
to mitigate the risk.
In response to a question from Representative
Skarphol, Mr. Greg Bryant, Regional Vice President
for Government Health Care Services, Affiliated
Computer Services, said core code attributable to
federal statute is generally 75 to 80 percent of the
project with the remainder of the project attributable to
individual state policies. He said the portion
attributable to the state depends on the specific
policies the state chooses to implement in addition to
the Medicaid requirements. He said federal mandates
that were unknown at the time the project was bid
would require a change order. He said ACS has
delineated the cost of the change orders and whether
the changes are attributable to federal law changes or
state requests. Representative Skarphol asked the
Department of Human Services to provide information
regarding change orders and whether the changes
are attributable to federal law changes or state
requests.
In response to a question from Senator Fischer,
Mr. Bryant said the contract includes a one-year
warranty, which will begin on the completion date of
the system in April 2011.
Representative Berg asked that ACS
representatives continue to provide periodic updates
to the Budget Section as the Medicaid management
information system project continues.
It was moved by Representative Berg,
seconded by Senator Nelson, and carried on a roll
call vote that the Budget Section approve the
Department of Human Services' expenditure of
$2,172,584 of project contingency funds, of which
$512,500 is from the general fund, pursuant to
Section 4 of 2007 Senate Bill No. 2024. Senators
Holmberg, Bowman, Grindberg, Kilzer, Krebsbach,
Lindaas, Mathern, Nelson, O'Connell, and Wardner
and Representatives Bellew, Berg, Boucher, Carlson,
Dosch, Glassheim, Hawken, Klein, Kreidt, Martinson,
Metcalf, Meyer, Monson, Onstad, Pollert, Skarphol,
Thoreson, Wald, and Wieland voted "aye." Senator
Fischer voted "nay."
Budget Section 10 September 15, 2009
INFORMATION TECHNOLOGY
DEPARTMENT ANNUAL REPORT
Mr. Mike Ressler, Deputy Chief Information Officer,
Information Technology Department, presented
information regarding a summary of the annual report
of the Information Technology Department pursuant to
NDCC Section 54-59-19. A copy of the report
presented is on file in the Legislative Council office.
He said ITD began as Central Data Processing in
1969 and over the last 40 years evolved into a
separate department. He said ITD billings for fiscal
year 2009 totaled $46.5 million. He said the majority
of revenue is generated from computer hosting and
software development service fees. He said the
2009 Legislative Assembly provided funding to
upgrade Ethernet bandwidth at kindergarten through
grade 12 school districts throughout the state. He
said a majority of school districts were connected and
many invested in video equipment to take advantage
of the increased bandwidth. He said the rates
charged for fees and services by the department
compare favorably to those charged by surrounding
states.
HEALTH INFORMATION TECHNOLOGY
OFFICE AND ADVISORY COMMITTEE
Ms. Lisa Feldner, Chief Information Officer,
Information Technology Department, presented
information regarding the Health Information
Technology Office, the Health Information Technology
Advisory Committee, and the status of health
information technology activities pursuant to 2009
Senate Bill No. 2332. She said the Health Information
Technology Advisory Committee was formed in 2006
and reauthorized by the 2009 Legislative Assembly.
She said the committee is comprised of six working
groups, including security, privacy, and policy; health
information exchange; communications; stakeholders;
standards; and finance. She said the committee has
filed a letter of intent to apply for federal fiscal stimulus
funding through the federal Department of Health and
Human Services. She said the grant would provide
funding to create a health information exchange in the
state. She said, if approved, the state could receive
from $4 million to $40 million. She said the committee
has contracted with a consulting group to assist with a
health information exchange plan. She said the
committee intends to complete the health information
exchange plan in October. She said the federal grant
is due by October 26, 2009.
STATUS OF THE GREAT PLAINS
APPLIED ENERGY RESEARCH CENTER
Mr. Paul Govig, Director, Division of Community
Services, Department of Commerce, provided
information regarding the status of the construction of
the Great Plains Applied Energy Research Center,
including the extent to which nonstate matching funds
have been made available for the project pursuant to
2009 House Bill No. 1350. He said the project is
currently in the request for proposal phase which is
being coordinated by the city of Bismarck.
Mr. Bill Wocken, City Administrator, City of
Bismarck, said the Great Plains Applied Energy
Research Center represents a link between energy
research generated in the laboratory and the
application of new energy concepts in the field. He
said the center will test energy technology
applications on a small scale so they may be more
reliably implemented in the field. He said the city of
Bismarck and project partners applied for and
received a grant from the federal Economic
Development Administration to complete a feasibility
study. He said the study will address the feasibility
and financial sustainability of the project concept and
if the project is deemed feasible, prepare a long-term
business plan. He said the grant will provide
$100,000 in federal funds to be matched by $100,000
from the city of Bismarck and six North Dakota energy
companies. He said responses to a request for
proposal for the services of an energy consultant to
complete the feasibility study are due September 18,
2009. He anticipates the feasibility study to be
completed by January 2010. He said no state funds
will be spent until the feasibility study and business
plan are completed.
ANNUAL AUDITS OF RENAISSANCE
FUND ORGANIZATIONS
Mr. Gordon D. La France, Manager, Renaissance
Zone Program, Division of Community Services,
Department of Commerce, presented information
regarding annual audits of renaissance fund
organizations pursuant to NDCC Section 40-63-07(9).
A copy of the information presented is on file in the
Legislative Council office. He said there are
45 renaissance zone cities, of which 7 have at least
one renaissance fund organization. He said the city of
Fargo has three renaissance fund organizations
having approved their second renaissance fund
organization in 2008 and third in 2009. He said the
original $2.5 million in renaissance credits approved
by the 1999 Legislative Assembly was allocated as of
June 2008 which triggered the release of the credits
authorized by the 2003 Legislative Assembly. He said
the third set of credits, authorized by the
2009 Legislative Assembly, has been allocated to
cities with populations over 30,000. He said $682,500
of the $2.5 million in renaissance credits approved by
the 2003 Legislative Assembly remain available,
$250,000 in Category 1 (0-5,000 population) and
$432,500 in Category 2 (5,001-30,000 population).
He said the entire $2.5 million in renaissance credits
approved by the 2009 Legislative Assembly remains
available in Category 3 (over 30,000 in population).
He said independent auditor's reports of all of the
renaissance fund organizations have been submitted
to the department.
In response to a question from Senator Mathern,
Mr. La France said with regard to funding and policy,
the program is working well and he has no
recommendations for changes. He said some of the
Budget Section 11 September 15, 2009
smaller communities consider the program too much
work, but the department may provide assistance with
the administration of the program.
In response to a question from Representative
Berg, Mr. La France said funds must remain invested
in a renaissance fund for 10 years to be eligible for a
50 percent tax credit. He said funds withdrawn early
are subject to taxation. Historically, he said, funding
from renaissance fund organizations has gone to
projects outside renaissance zones.
TOBACCO PREVENTION
AND CONTROL COMMITTEE
Chairman Holmberg called on Ms. Pat McGeary,
Tobacco Prevention and Control Executive Committee
member, to present information regarding the
implementation of the comprehensive tobacco
prevention and control plan pursuant to 2009 House
Bill No. 1015. A copy of the information presented is
on file in the Legislative Council office. She said
through September 11, 2009, the Tobacco Prevention
and Control Executive Committee has spent $10,882
of its 2009-11 biennium appropriation for advisory
committee expenses and rent. She said the
committee released the state tobacco plan in
July 2009. She said the advisory committee
prioritized the components of the state plan that will
be addressed during fiscal year 2010, reviewed
applications for the tobacco prevention and control
local grants program, and awarded nearly $3 million to
28 local public agencies or cooperating public health
agencies. She said the executive committee has:
• Signed a contract with the State Department of
Health to serve as the fiscal agent for the
committee;
• Leased office space at the North Dakota
Agriculture Foundation Building;
• Awarded contracts totaling $940,000 to 28 local
public health units to support the
implementation of Public Health Service
guidelines;
• Issued contracts for the tobacco prevention and
control local grants program;
• Worked with the State Department of Health
and local agencies to develop tools for
implementation of the Public Health Service
guidelines and the comprehensive tobacco-free
school policy; and
• Posted the job announcement for the executive
director position.
Ms. McGeary said the executive committee is
developing guidance for a special initiative grants
program to provide funding for special projects to
benefit groups with high tobacco use rates.
USE OF STATE, FEDERAL, EMERGENCY,
AND OTHER HIGHWAY FUNDING
Mr. Francis Ziegler, Director, Department of
Transportation, presented information regarding the
anticipated use of state, federal, emergency, and
other highway funding during the 2009 construction
season pursuant to 2009 Senate Bill No. 2012. A
copy of the information presented is on file in the
Legislative Council office. He said 2009
transportation programs include regular construction
projects, American Recovery and Reinvestment Act of
2009 projects, and emergency relief projects.
Mr. Ziegler said the 2009 regular construction
program includes 199 projects at a cost of
$260 million, including $69.4 million for urban road
improvement and nearly $18 million for county road
improvements, including the replacement of 11 county
bridges.
Mr. Ziegler said the department has received an
allocation of approximately $170.1 million for roads
and bridges through the American Recovery and
Reinvestment Act of 2009. He said the department
has identified 99 projects totaling $90 million for 2009,
including $60.6 million for state projects, $15.7 million
for urban projects, and $13.7 million for county
projects. He said the department anticipates the
remaining $80.1 million of federal fiscal stimulus funds
will be spent for projects in 2010.
Mr. Ziegler said the department is continuing its
review of emergency relief projects and estimates the
total cost of statewide emergency relief projects, not
including the Devils Lake Basin area, is approximately
$22 million.
EMERGENCY SNOW REMOVAL GRANTS
Chairman Holmberg called on Major General David
Sprynczynatyk, Adjutant General, to provide
information regarding emergency snow removal
grants distributed to counties, townships, and cities
pursuant to 2009 Senate Bill No. 2012. He said
grants were provided to those counties and cities that
during the first quarter of 2009 incurred costs
exceeding 200 percent of their average cost for snow
removal for the same period over the past five years.
He said the final payments have been made and a
total of $7.8 million has been distributed to 123 cities,
40 counties, and 2 tribal regions. He said 17 cities,
13 counties, and 2 tribal regions either did not request
assistance or did not qualify. A copy of the report is
on file in the Legislative Council office.
FLOOD DISASTER-RELATED
EXPENDITURES
Major General Sprynczynatyk presented
information regarding 2009 flood disaster-related
expenditures, transfers, reimbursements, and general
fund deposits pursuant to 2009 Senate Bill No. 2444.
A copy of the report is on file in the Legislative Council
office. He said disaster costs include four
components--emergency measures, public assistance,
mitigation, and individual assistance. He said
an original estimate of total disaster costs of
$166 million was provided during the 2009 legislative
session. He said current estimates total
approximately $106 million, including $33 million for
emergency measures, $50 million for public
assistance, $11 million for mitigation, and $12 million
for individual assistance. However, he said, the total
Budget Section 12 September 15, 2009
may increase based on more recent Federal
Emergency Management Agency (FEMA) estimates
of the public assistance component.
Major General Sprynczynatyk said actual costs to
date total $75.9 million, including $32.3 million for
emergency measures, $29.1 million for public
assistance, $3 million for mitigation, and $11.5 million
for individual assistance. He said FEMA has
established $78.3 million as the federal cost
requirement. He said when the federal cost
requirement is exceeded, the federal match will
increase from 75 percent to 90 percent. He said the
federal portion of the actual costs to date totals
$67.1 million, or 85.6 percent of the $78.3 million
threshold for the increased federal cost-share. He
said the department anticipates the federal match for
most of the flood response and flood recovery costs
will be 90 percent.
Major General Sprynczynatyk said other federally
disbursed funds that do not qualify as part of the
federal cost requirement for federal participation
include $13.2 million in Small Business Administration
loans and $13 million in national flood insurance
program claims.
Major General Sprynczynatyk said there have not
yet been any reimbursements to the general fund of
funds spent for emergency response by the
Department of Emergency Services, but there may be
funds returned to the general fund when costs are
finalized.
VETERANS' HOME REPORT
Chairman Holmberg announced that the
Legislative Council staff distributed to each member a
written summary report from the Veterans' Home
project manager regarding the status of the Veterans'
Home construction project pursuant to 2009 Senate
Bill No. 2007. A copy of the report is on file in the
Legislative Council office.
COMMITTEE DISCUSSION
AND STAFF DIRECTIVES
Chairman Holmberg announced future meetings of
the Budget Section are tentatively scheduled for
Tuesday, December 15, 2009, and Thursday,
March 11, 2010.
Representative Kaldor asked that additional
information be provided regarding the availability of
federal Unemployment Insurance Modernization Act
funds. Chairman Holmberg requested that Job
Service North Dakota be asked to provide information
regarding these funds at the next Budget Section
meeting.
It was moved by Representative Wald,
seconded by Senator Fischer and carried on a
voice vote that the Budget Section meeting be
adjourned subject to the call of the chair.
Chairman Holmberg adjourned the meeting at
2:09 p.m.
___________________________________________
Sheila M. Sandness
Fiscal Analyst
___________________________________________
Allen H. Knudson
Legislative Budget Analyst and Auditor
ATTACH:1
Minutes of the
BUDGET SECTION
Tuesday, September 15, 2009
Senate Chamber, State Capitol
Bismarck, North Dakota
Senator Ray Holmberg, Chairman, called the
meeting to order at 9:00 a.m.
Members present: Senators Ray Holmberg, Bill
Bowman, Tom Fischer, Tony S. Grindberg, Ralph L.
Kilzer, Karen K. Krebsbach, Elroy N. Lindaas, Tim
Mathern, Carolyn Nelson, David O'Connell, Larry J.
Robinson, Rich Wardner; Representatives Larry
Bellew, Rick Berg, Merle Boucher, Al Carlson, Mark A.
Dosch, Eliot Glassheim, Kathy Hawken, Lee Kaldor,
Matthew M. Klein, Gary Kreidt, Joe Kroeber, Bob
Martinson, Ralph Metcalf, Shirley Meyer, David
Monson, Kenton Onstad, Chet Pollert, Bob Skarphol,
Blair Thoreson, Francis J. Wald, Alon C. Wieland,
Clark Williams
Members absent: Senators Randel Christmann,
Aaron Krauter, Tom Seymour, Bob Stenehjem, John
Warner; Representatives Jeff Delzer, Mary Ekstrom,
Keith Kempenich, James Kerzman, Jon Nelson, Ken
Svedjan, Don Vigesaa
Others present: Jim W. Smith, Legislative
Council, Bismarck
See attached appendix for additional persons
present.
It was moved by Senator O'Connell, seconded
by Senator Robinson, and carried on a voice vote
that the minutes of the June 23, 2009, meeting be
approved as distributed.
STATUS OF THE STATE GENERAL FUND
Chairman Holmberg called on Ms. Pam Sharp,
Director, Office of Management and Budget (OMB), to
present a report on the status of the general fund,
including turnback and use of deficiency
appropriations, and the state's economy, including
information on economic sectors showing growth. A
copy of the information presented is on file in the
Legislative Council office.
Ms. Sharp said the consumer price index (CPI) is
expected to decline an average of .7 percent during
2009 and then increase by 1.6 percent during 2010
and 2 percent during 2011. She said the CPI for
July 2009 was a negative 2.1 percent, down from a
negative 1.4 percent in June 2009 and significantly
lower than the 5.6 percent of one year ago. She said
the average yield on a three-month Treasury bill
during the second quarter of 2009 was .18 percent,
four basis points lower than the previous quarter and
substantially lower than the 1.39 percent average for
2008. She said North Dakota's unemployment rate for
July 2009 was 3.9 percent, considerably lower than
the national rate of 9.7 percent, but up slightly from
the July 2008 rate of 3.1 percent. She said North
Dakota oil production increased to nearly 215,000
barrels per day in June 2009 and continues to
increase. She said the average price for North
Dakota crude oil was $43 per barrel in April 2009, $51
per barrel in May 2009, and $61 per barrel in
June 2009. She said the current oil price is $62 per
barrel and the rig count is 50.
FINAL 2007-09 BIENNIUM GENERAL
FUND REVENUES AND EXPENDITURES
Ms. Sharp presented the following information on
the final status of the general fund for the 2007-09
biennium:
Unobligated general fund
balance - July 1, 2007
$295,541,176
Add
General fund collections
through June 30, 2009
$2,715,263,379
Cash certifications and
adjustments
42,793
General fund balance
obligated for authorized
carryover from 2005-07
17,108,049
Total general fund revenue for
the 2007-09 biennium
2,732,414,221
General fund turnback for the
2007-09 biennium
70,949,621
Total available 3,098,905,018
Less
2007-09 biennium general fund
ongoing appropriations
(2,317,447,307)
2007-09 biennium general fund
one-time appropriations
(139,526,649)
Contingent appropriation
(Section 50 of SB 2200)
(5,000,000)
Authorized carryover
expenditures from 2005-07
(17,108,049)
Emergency and supplemental
appropriations
(127,156,319)
Adjustments 80,750
Total appropriations (2,606,157,574)
Transfers and adjustments
Adjustments 119,034
Nonappropriated transfers (6,086,416)
Transfer to the budget
stabilization fund
(124,936,548)
Total transfers and adjustments (130,903,930)
Ending general fund balance -
June 30, 2009
$361,843,514
Budget Section 2 September 15, 2009
Ms. Sharp said after the transfer of $124,936,548
from the general fund to the budget stabilization fund
in July 2009, the balance in the budget stabilization
fund is $324,936,548. She said the balance in the
budget stabilization fund is limited to 10 percent of the
total 2009-11 biennium appropriations. She said the
transfer made from the general fund to the budget
stabilization fund was the maximum allowed.
Ms. Sharp presented the following information on
the final status of the permanent oil tax trust fund for
the 2007-09 biennium:
Permanent oil tax trust fund balance - July 1, 2007 $143,270,662
Add
Revenue collections through June 30, 2009 484,256,596
Total available for the 2007-09 biennium 627,527,258
Less expenditures and transfers
Authorized by the 2007 Legislative Assembly (137,550,241)
Authorized by the 2009 Legislative Assembly (250,000)
Permanent oil tax trust fund balance - June 30, 2009 $489,727,017
2007-09 Biennium General Fund Turnback
Ms. Sharp presented information on the 2007-09
biennium unspent general fund appropriations by
agency. She said 2007-09 unspent general fund
appropriation authority totaled $70.9 million. She said
the Department of Human Services had the largest
unspent amount of $54.4 million, of which
$33.2 million was the result of additional funding
received due to the increase in the federal medical
assistance percentage (FMAP) and child support
pursuant to the American Recovery and Reinvestment
Act of 2009.
Representative Carlson expressed concern that
2009-11 biennium general fund appropriations are
less due to the receipt of federal stimulus funds. He
asked OMB to provide information at the next Budget
Section meeting on the estimated effects that the
anticipated reduction in federal fiscal stimulus funds
will have on general fund appropriation requirements
for the 2011-13 biennium. Representative Skarphol
requested the information be updated periodically and
reported to the Budget Section throughout the interim.
Chairman Holmberg asked OMB to provide this
information to the Budget Section at future meetings.
2007-09 Biennium Emergency and
Supplemental Appropriations
Ms. Sharp presented information on the 2007-09
emergency and supplemental appropriation amounts
by agency. She said 2007-09 emergency and
supplemental appropriations totaled $127.2 million, of
which $81.9 million was spent by June 30, 2009,
including $59.9 million provided for weather-related
grants pursuant to Senate Bill No. 2012. She said
$45.2 million of the 2007-09 emergency and
supplemental appropriations will be continued in the
2009-11 biennium.
STATUS OF THE 2009-11 BIENNIUM
GENERAL FUND
Ms. Sharp presented the following information on
the status of the state general fund for the 2009-11
biennium based on revenue collections through
August 2009:
Unobligated general fund
balance - July 1, 2009
$361,843,514
Add
General fund collections
through August 2009
$505,208,957
Forecasted general fund
revenue for the remainder of
the 2009-11 biennium
2,468,679,065
Total estimated general fund
revenue for the 2009-11
biennium
2,973,888,022
Balance obligated for authorized
carryover from the 2007-09
biennium
76,383,528
Estimated total available 3,412,115,064
Less
2009-11 biennium general fund
ongoing appropriations
(2,970,380,754)
2009-11 biennium general fund
one-time appropriations
(278,984,727)
Balance obligated for
authorized carryover from the
2007-09 biennium
(76,383,528)
Estimated deficiency requests (3,823,000)
Total appropriations and
estimated deficiency requests
(3,329,572,009)
Estimated general fund
balance - June 30, 2011
$82,543,055
Ms. Sharp said the Tax Department anticipates
2009 Senate Bill No. 2402 relating to the homestead
tax credit program will result in a 2009-11 deficiency
request of approximately $3.8 million.
Ms. Sharp presented the following information on
the status of the permanent oil tax trust fund for the
2009-11 biennium:
Beginning permanent oil tax trust fund balance -
July 1, 2009
$489,727,017
Add
Forecasted revenues for the 2009-11 biennium
(based on 2009 legislative forecast assumptions for
oil price and production)
323,092,000
Total estimated funds available for the 2009-11
biennium
812,819,017
Less expenditures and transfers
Transfer to the general fund pursuant to
2009 HB 1015
(140,000,000)
Transfer to the general fund for mill levy reduction
program pursuant to 2009 HB 2199
(295,000,000)
Transfer to the property tax relief sustainability fund
pursuant to 2009 HB 2199
(295,000,000)
Appropriations pursuant to 2009 HB 1015, 1305,
and 1394 and SB 2003 and 2020
(16,175,100)
Estimated permanent oil tax trust fund balance -
June 30, 2011
$66,643,917
Budget Section 3 September 15, 2009
In response to a question from Representative
Wald, Ms. Sharp said the 2009 Legislative Assembly
provided for a transfer of $295 million from the
permanent oil tax trust fund to the property tax relief
sustainability fund. She said the transfer will be made
in July 2010, but the funds will not be spent until
appropriated by the 2011 Legislative Assembly.
Ms. Sharp presented information on general fund
revenue collections for August 2009 and the 2009-11
biennium to date. She said revenues collected for the
biennium to date are 3.3 percent more than the
legislative forecast. She said the increase is primarily
due to increases in oil and gas production tax and oil
extraction tax collections, which exceeded the
biennium-to-date legislative forecast by $9.5 million
and $9.1 million, respectively. She said biennium-todate
motor vehicle excise tax collections also
exceeded estimates by $3.1 million, or 51.3 percent.
She said sales tax collections were $8.5 million, or
15.6 percent less than the legislative forecast for the
month of August. She said biennium-to-date sales tax
collections were $7.9 million, or 7.4 percent less than
the legislative forecast.
In response to a question from Representative
Carlson, Ms. Sharp said the Attorney General's office
deposits lottery revenue in the general fund in June of
each fiscal year.
ECONOMIC SECTORS SHOWING GROWTH
Ms. Sharp presented information on the state's
economy, including information on economic sectors
showing growth. She said the state's gross domestic
product is the value added in production by the labor
and capital located in the state. She said all of the
state's industry sectors grew as the state gross
domestic product increased from $17.8 billion in 2000
to $31.2 billion in 2008.
In response to a question from Representative
Skarphol, Ms. Sharp said three industry sectors--
agriculture/forestry/fishing/hunting, manufacturing,
and mining--increased as a percentage of the total
state gross domestic product while other industry
sectors either stayed the same or decreased slightly.
IRREGULARITIES IN THE FISCAL
PRACTICES OF THE STATE
Pursuant to North Dakota Century Code (NDCC)
Section 54-14-03.1, Ms. Sharp presented information
on irregularities in the fiscal practices of the state. A
copy of the information presented is on file in the
Legislative Council office. She said the state
agencies with fiscal irregularities include:
Agency Amount Reason
Office of Management
and Budget
$500 Additional workload to run
extra payrolls for activated
National Guard members
during spring flooding
Department of
Commerce
$625 Temporary additional
workload
North Dakota Vision
Services - School for the
Blind
$3,450 Additional work performed
in June by two teachers at
the School for the Blind
outside of their nine-month
teaching contracts
Council on the Arts $5,400 Additional work performed
by two employees related
to a book on North Dakota
folklore to be used as a
textbook for various
anthropology classes
State Department of
Health
$13,782 Severance package
EMPLOYEE BONUSES
Ms. Sharp presented information on the number of
employees receiving bonuses above the 25 percent
limitation pursuant to NDCC Section 54-06-30 and
Section 1 of 2009 House Bill No. 1030. She said
agencies may not give bonuses to more than
25 percent of their employees except in special
circumstances approved by Human Resource
Management Services (HRMS). She said HRMS is
required to report any exceptions to the Budget
Section. She said the law became effective August 1,
2009, and since then no agency has exceeded the
25 percent limitation on the number of employees
receiving bonuses.
MAJOR TRUST FUNDS
Ms. Sharp presented information on the status of
the state's major trust funds, including information on
each fund's current balance compared to two years
ago and the effect of any investment gains or losses
on each fund during the past two years. She
presented a schedule providing the beginning
balance, revenues, expenditures, transfers, and
ending balance of the permanent oil tax trust fund,
foundation aid stabilization fund, budget stabilization
fund, common schools trust fund, and the lands and
minerals trust fund. A copy of the information
presented is on file in the Legislative Council office.
Ms. Sharp said the principal of the permanent oil
tax trust fund ($489.7 million) and the foundation aid
stabilization fund ($65.8 million) on June 30, 2009, are
invested by the State Treasurer's office in certificates
of deposit and the earnings are credited to the general
fund. She said these funds have not experienced
investment gains or losses.
Ms. Sharp said the budget stabilization fund
principal ($324.9 million) on June 30, 2009, is
invested by the State Investment Board in a low-risk
portfolio consisting of certificates of deposit, cash
equivalents, bonds, and bank loans. She said
investment earnings of $1.7 million were credited to
the general fund during the 2007-09 biennium, and
the fund experienced a $9.9 million market decline in
the last 18 months of the 2007-09 biennium. She said
most of the losses were unrealized and would not
affect the principal balance of the fund if the assets
are held until maturity.
Ms. Sharp said the common schools trust fund
balance on June 30, 2009, was $856.5 million. She
said the fund is invested by the Land Department in
Budget Section 4 September 15, 2009
stocks, bonds, farm loans, and other investment
assets managed to preserve purchasing power and
maintain stable distributions to fund beneficiaries.
During the 2007-09 biennium, she said, the fund
experienced net realized capital losses of
$42.5 million and net unrealized capital losses of
approximately $184.8 million. She said the fund
provided schools with $66.8 million during the
2007-09 biennium and anticipates providing the
estimated $77.2 million for the 2009-11 biennium.
Ms. Sharp said the lands and minerals trust fund
balance on June 30, 2009, was $32.1 million. She
said the fund is invested by the Land Department in
short-term, low-risk, fixed income investments, such
as money market accounts, Bank of North Dakota
certificates of deposit, and an operating loan to the
Mill and Elevator. The fund did not experience any
investment losses during the 2007-09 biennium.
FEDERAL FISCAL STIMULUS
FUNDING FOR ADMINISTRATION
Ms. Sharp presented information regarding federal
fiscal stimulus funds retained by agencies for
administration purposes. She provided a schedule of
American Recovery and Reinvestment Act of 2009
funds appropriated by agency for the 2009-11
biennium and an estimate of the portion of the funds
appropriated retained for administration. A copy of
the information presented is on file in the Legislative
Council office. Of the $571.3 million in federal fiscal
stimulus funds appropriated for the 2009-11 biennium,
she said, approximately $6.1 million, or 1 percent will
be retained for administration by the various agencies.
She said administrative costs for some agencies are
allowed based on a percentage of the funds awarded.
She said $289,494 of federal fiscal stimulus funding
was appropriated to OMB for general administration of
federal fiscal stimulus funds.
Chairman Holmberg asked OMB to provide the
Budget Section with details of how the $1.2 million
provided to the Department of Commerce for the
administration of the state energy program is being
used.
In response to a question from Representative
Skarphol, Ms. Sharp said Job Service North Dakota
may still accept certain stimulus funding previously
unclaimed by the agency. She said she would
provide information to the Budget Section regarding
stimulus funding available to the state that was not
accepted.
In response to a question from Representative
Boucher, Chairman Holmberg said the Employee
Benefits Programs Committee receives reports on the
retirement funds of the Teachers' Fund for Retirement
and the Public Employees Retirement System.
Chairman Holmberg asked the Legislative Council
staff to provide the most recent minutes of the
Employee Benefits Programs Committee to the
members of the Budget Section.
In response to a question from Representative
Wald, Ms. Sheila Peterson, Director, Fiscal
Management Division, Office of Management and
Budget, said the state receives stimulus funding on a
reimbursement basis. She said expenditures for
federal fiscal year 2009 are exceeding estimates. She
said the majority of the stimulus funds were
anticipated to be spent in 2010 and 2011.
Chairman Holmberg requested OMB and the
Legislative Council staff to compile information
regarding federal fiscal stimulus funding provided
directly to political subdivisions for the next Budget
Section meeting.
VETERANS' HOME SPECIAL
FUND BALANCE
Ms. Sharp presented information regarding the
Veterans' Home July 1, 2009, special fund balance
compared to the amount anticipated in the Veterans'
Home 2009-11 budget. A copy of the information
presented is on file in the Legislative Council office.
She said the Veterans' Home special fund balance of
$3.6 million exceeded the amount anticipated in the
Veterans' Home 2009-11 budget by $322,774. She
said the additional funds were due to the timing of
revenues and expenditures and an increase of $4 per
day in the Veterans' Administration per diem.
2007-09 CAPITAL CONSTRUCTION
AND INFORMATION
TECHNOLOGY CARRYOVER
Ms. Sharp presented information on 2007-09
capital construction and information technology
project funding authorized by the Capital Construction
Carryover Committee to continue to the 2009-11
biennium. A copy of the information presented is on
file in the Legislative Council office. She said
authorization to continue funding for projects totaling
$63.7 million has been approved by the Capital
Construction Carryover Committee. Of this amount,
she said, $6.8 million is from the general fund,
$36.9 million is from federal funds, and $20 million is
from special funds. She said the Department of
Human Services' Medicaid management information
system project carryover totaling $31.7 million, of
which $2.4 million is from the general fund, represents
nearly one-half of the capital construction carryover.
DISTRIBUTION OF
GENERAL SALARY INCREASES
Ms. Sharp presented information regarding a
summary of general salary increase methods used by
agencies to distribute salary increases among
employees and the effect these distribution methods
have had on salary compression issues of agencies.
She provided a summary by agency of the number of
employees receiving a general salary increase,
including the minimum, maximum, and average
percentage increase received per employee. A copy
of the information presented is on file in the
Legislative Council office. She said 6,848 of the 7,266
employees at state agencies receiving the general
salary increase received increases ranging from
.10 percent to 13.7 percent.
Budget Section 5 September 15, 2009
EMPLOYEE PAY AND
MARKET EQUITY CONCERNS
Ms. Sharp presented information on selected
agencies that have had pay and market equity
concerns, including specific information on how salary
equity increases have affected the salaries of the
affected employees and how the general salary
increase funds were distributed to these and other
employees within the agency, including the range of
percentage increases provided. She provided a
summary by agency of the number of employees
receiving equity pool increases. A copy of the
information presented is on file in the Legislative
Council office. She said 34 agencies received salary
equity funding, and of the 6,681 employees in the
agencies receiving the funding, 4,474 employees
received salary equity increases ranging from
.02 percent to 24.28 percent.
In response to a question from Representative
Carlson, Ms. Sharp said agencies applied the
5 percent general salary increases before awarding
salary equity increases.
In response to a question from Representative
Skarphol, Ms. Sharp said because agencies with
market equity concerns were targeted, OMB
determined the salary equity increases were not
subject to the administrative rule limiting salary
increases to 20 percent. She said certain employees
in targeted agencies, such as the Parks and
Recreation Department and the Department of
Mineral Resources of the Industrial Commission,
received the highest average percentage salary equity
increases of 22.48 percent and 24.28 percent,
respectively.
Ms. Sharp provided a summary of classified
employees by quartile for selected agencies for 2008
and 2009. She said the chart demonstrates the
effectiveness of the equity increases since the
percentage of employees in the middle and upper
quartile of their pay range increased subsequent to
the general salary and salary equity increases.
RISK MANAGEMENT WORKERS'
COMPENSATION PROGRAM
Mr. Tag Anderson, Risk Management Director,
Office of Management and Budget, presented
information regarding the status of the risk
management workers' compensation program
pursuant to NDCC Section 65-04-03.1(5). He said the
2001 Legislative Assembly established a single
workers' compensation account for all state entities.
He said the Risk Management Division administers
the program. He said for coverage periods beginning
July 1, 2001, the Risk Management Division entered
deductible contracts with Workforce Safety and
Insurance for 143 consolidated accounts. He said the
deductible amount selected was $100,000 per claim.
He provided the following results for the eight
coverage years beginning July 1, 2001, through
June 30, 2009:
Nonconsolidated guaranteed
cost program premium and
assessments
$35,565,156
Risk Management Division
deductible premium paid to
Workforce Safety and Insurance
$12,853,988
Risk Management Division paid
losses through June 30, 2009
11,437,436
Risk Management Division
pending losses (reserves)
2,556,909
Risk Management Division
combined deductible premium
and losses
$26,848,333
Estimated savings for an
eight-year period
$8,716,823
Mr. Anderson said the Risk Management Division
has implemented programs to reduce premium rates
to agencies with effective risk management strategies.
A copy of the report is on file in the Legislative Council
office.
AGENCY REQUESTS AUTHORIZED
BY THE EMERGENCY COMMISSION
Chairman Holmberg directed the committee to
consider agency requests which have been
authorized by the Emergency Commission and
forwarded to the Budget Section pursuant to NDCC
Section 54-16-04.1. The information relating to the
requests was provided to Budget Section members
prior to the meeting and is on file in the Legislative
Council office.
It was moved by Senator Wardner, seconded
by Senator Lindaas, and carried on a roll call vote
that pursuant to NDCC Section 54-16-04.1, the
Budget Section approve the following requests
which have been approved by the Emergency
Commission:
• Department of Commerce (Request #1703) -
To increase special funds spending
authority by $258,858 to accept federal
funds from the federal American Recovery
and Reinvestment Act of 2009 enhanced
government energy assurance and
resiliency grant for the creation and testing
of standardized energy assurance and
resiliency plans to use during energy
emergencies and supply disruptions.
• Department of Commerce (Request #1704) -
To increase special funds spending
authority by $615,000 to accept federal
funds from the United States Department of
Energy under the federal American
Recovery and Reinvestment Act of 2009 to
provide rebates for consumers purchasing
Energy Star appliances.
• Department of Human Services (Request
#1705) - To increase special funds spending
authority by $11,062,000 to accept federal
funds from the federal American Recovery
and Reinvestment Act of 2009 for grant
funds for the temporary assistance for
needy families (TANF) program increased
Budget Section 6 September 15, 2009
caseload from 2007 to 2008 ($510,000), onetime
funds for subsidized employment costs
to assist individuals exiting the TANF
program or to avoid entering the program
($10,345,000), and administrative funds for
the supplemental nutrition assistance
program ($207,000).
• State Department of Health
(Request #1708) - To increase special funds
spending authority by $4,920,000 to accept
federal funds from the Centers for Disease
Control and Prevention for the salaries and
wages line item ($480,000), the operating
expenses line item ($640,000), the capital
assets line item ($200,000), and the grants
line item ($3,600,000) for pandemic influenza
preparedness and a vaccination campaign.
Senators Holmberg, Bowman, Krebsbach,
Lindaas, Mathern, Nelson, O'Connell, Robinson, and
Wardner and Representatives Berg, Hawken, Kaldor,
Klein, Kreidt, Kroeber, Martinson, Metcalf, Meyer,
Onstad, Pollert, Wald, and Williams voted "aye."
Senators Fischer, Grindberg, and Kilzer and
Representatives Bellew, Carlson, Dosch, Monson,
Skarphol, Thoreson, and Wieland voted "nay."
WILLISTON STATE COLLEGE - CHANGE
IN SCOPE OF PROJECT AND INCREASE
IN AUTHORIZATION
Dr. Ray Nadolny, President, Williston State
College, presented information regarding a request for
Budget Section approval to expand the scope and
increase the authorization for the science laboratory
project from $1.61 million to $2.2 million pursuant to
NDCC Section 48-01.2-25. A copy of the information
presented is on file in the Legislative Council office.
He said the Legislative Assembly authorized
$1.61 million from the general fund to renovate the
science laboratory at Williston State College. He said
Williston State College is seeking Budget Section
approval to change the scope of the project from a
renovation to an addition and increase the
authorization from $1.61 million to $2.2 million. He
said the renovation proposal has presented serious
challenges and would cost more per square foot than
a newly constructed science center addition. He said
providing for the addition instead of renovating the
existing laboratory will not only expand current
science offerings but will maximize funds provided by
the state through additional community financial
support. He said the Williston State College
Foundation has committed its resources to the project
and with the city of Williston will conduct a capital
campaign for the additional $590,000 necessary for
the addition.
It was moved by Representative Wald,
seconded by Senator Robinson, and carried on a
roll call vote that pursuant to NDCC Section
48-01.2-25, the Budget Section approve the
Williston State College request to expand the
scope and increase the authorization of the
science laboratory project to spend $2.2 million on
the project. Senators Holmberg, Bowman, Fischer,
Grindberg, Kilzer, Krebsbach, Lindaas, Mathern,
Nelson, O'Connell, Robinson, and Wardner and
Representatives Bellew, Berg, Carlson, Dosch,
Hawken, Kaldor, Klein, Kreidt, Kroeber, Martinson,
Metcalf, Meyer, Monson, Onstad, Pollert, Skarphol,
Thoreson, Wald, Wieland, and Williams voted "aye."
No negative votes were cast.
LOCAL FUNDS - HIGHER EDUCATION
CONSTRUCTION PROJECTS
Chairman Holmberg called on Ms. Laura Glatt,
Vice Chancellor for Administrative Affairs, North
Dakota University System, to present information
regarding the sources of local funds received for
construction projects of entities under the State Board
of Higher Education pursuant to NDCC Section
15-10-12.3. A copy of the information presented is on
file in the Legislative Council office. She said four
state-funded projects--Bismarck State College,
University of North Dakota, North Dakota State
University, and Minot State University--authorized for
the 2007-09 biennium and two projects--North Dakota
State University Main and North Central Research
Centers--continued from the 2005-07 biennium
required local matching funds. She said two projects--
the 2007-09 Schafer Hall renovation project at
Bismarck State College and the 2005-07 agronomy
laboratory and greenhouse carryover project at the
North Central Research Center--were completed
during the 2007-09 biennium within the overall
appropriation authority and within the local match
requirements. She said the Schafer Hall renovation
project totaled $799,560, of which $310,860 was
provided through tuition revenues and the agronomy
laboratory and greenhouse project totaled $1,953,752,
of which $1,113,752 was from fundraising and
$440,000 from state bonding proceeds. She said the
projects at the University of North Dakota, North
Dakota State University, Minot State University, and
North Dakota State University Main Research Center
were not completed in the 2007-09 biennium and will
be continued to the 2009-11 biennium.
MAJOR HIGHER EDUCATION CAPITAL
CONSTRUCTION PROJECTS
Ms. Glatt presented information regarding an
update on the status of major higher education capital
construction projects currently in progress. She
provided a schedule of major state-funded higher
education capital construction projects during the
2007-09 biennium and the 2009-11 biennium,
including the original appropriation, authorization
adjustments, expenditures to date, and remaining
authority for each of the projects. A copy of the
information presented is on file in the Legislative
Council office. She said all but two of the projects
listed are within their approved authorization limits.
She said Minot State College spent $1,195 more than
authorized on its dome floor project and Dakota
Budget Section 7 September 15, 2009
College at Bottineau spent $12,921 more than
authorized on its steamline replacement project. She
said in both cases the additional costs were financed
by nonstate funds. She said Minot State College used
indirect cost-recovery funds from federal grants and
Dakota College at Bottineau used housing reserves
for the additional cost.
Chairman Holmberg asked the North Dakota
University System continue to update the Budget
Section regarding the status of major higher education
capital construction projects and that the North Dakota
University System provide the updated information at
the March 2010 Budget Section meeting.
In response to a question from Senator Mathern,
Ms. Glatt said the State Board of Higher Education
policy requires a campus that anticipates exceeding
its funding authorization on a capital project to request
additional authority from the board. In addition to
board approval, she said, NDCC Section 48-01.2-25
precludes a state agency or institution from
significantly changing or expanding a public
improvement beyond what has been approved by the
Legislative Assembly unless the Legislative Assembly
or the Budget Section approves the change or
expansion of the project or any additional
expenditures for the project. She said when the total
project cost exceeds $250,000, the campus is also
required to return to the board after receiving Budget
Section approval to provide the board with funding
details of the change. She said the approval process
for a change in the scope of a project or increased
authorization of a project is the same whether a
project is funded by state funds or private funds.
Ms. Glatt said the University System office
anticipates the presidents' houses currently under
construction on the campuses of North Dakota State
University and the University of North Dakota will
exceed their respective authorizations. She said the
projects are currently under review by the State Board
of Higher Education. She said if the board approves
increases to the authorizations for the presidents'
houses, it is likely the campuses will be requesting
approval of the increases at the next Budget Section
meeting.
Chairman Holmberg requested information
regarding the presidents' houses at North Dakota
State University and the University of North Dakota be
provided to the members of the Budget Section prior
to the next Budget Section meeting.
In response to a question from Representative
Boucher, Ms. Glatt said the ongoing repair,
maintenance, and eventual replacement of facilities
gifted to University System campuses is addressed on
a case-by-case basis. She said generally when a
facility is gifted to the state, it becomes state property
and maintenance costs are the state's responsibility.
GAME AND FISH DEPARTMENT LAND
ACQUISITION REQUESTS
Mr. Roger Rostvet, Deputy Director, Game and
Fish Department, presented information regarding
land acquisitions in Morton and Grand Forks Counties
that require Budget Section approval pursuant to
NDCC Section 20.1-02-05.1. He said the request to
purchase property in Pembina County included on the
agenda is being withdrawn because the property will
be purchased by Central Power Cooperative for
Department of Transportation mitigation. He said the
Morton and Grand Forks Counties land acquisitions
rank high on the department's list of potential land
purchases and were identified in information provided
to the Appropriations Committees of the
2009 Legislative Assembly. He said the department
pays in lieu of property tax on land and manages
property for hunting and wildlife. He said the
Governor has approved the purchase of both
properties.
Mr. Rostvet provided background information and
a map of the proposed land acquisition in Morton
County. He said the property consists of 65.35 acres
of land adjacent to and intermingled with the Oahe
Wildlife Management Area. He said the $105,000
purchase price ($1,600 per acre) is based on an
appraisal done by ALied Appraisals, Inc., of Bismarck.
A copy of the information and map is on file in the
Legislative Council office.
In response to a question from Senator Robinson,
Mr. Rostvet said the property is zoned as recreational
and potential other uses include single-family homes
and an all-terrain vehicle or motocross track. He said
either of these uses would conflict with the
department's rifle and pistol range and the wildlife
management area.
In response to a question from Senator Bowman,
Mr. Rostvet said some mining of gravel occurred on
the property prior to reclamation laws and spoil banks
exist on the property. He said areas mined
subsequent to the reclamation laws have been
reclaimed. He said the department has determined
that no additional reclamation requirements exist.
Mr. Rostvet provided background information and
a map of the proposed land acquisition in Grand Forks
County. He said the property consists of 160 acres of
land and is adjoined on three sides by Prairie Chicken
Wildlife Management Area. He said the land, in an
area locally known as the Alkali Flats, is owned by
Paul and Lula Bry and is one of only two areas in the
state that have viable populations of prairie chickens.
He said 129 acres of the property is currently under a
conservation reserve program (CRP) contract until
2018. He said the owners have offered to sell the
property to the Game and Fish department for
$80,000 ($500 per acre) based on an appraisal done
by Alerus Appraisals of Grand Forks. A copy of the
information and map is on file in the Legislative
Council office.
In response to a question from Senator Mathern,
Mr. Rostvet said the department chooses a local or
regional appraiser and in this case the seller and the
department mutually agreed upon a local appraiser
with experience in land appraisals.
In response to a question from Representative
Boucher, Mr. Rostvet said the state will retain the
CRP contract; however, because the state already
Budget Section 8 September 15, 2009
owns in excess of 50,000 acres under contract, the
department is not allowed to accept the payments.
He said the CRP contract is compatible with the
department's plan for the future use of the land, so the
department would remain in compliance with the
contract.
It was moved by Senator Robinson, seconded
by Representative Wald, and carried on a roll call
vote that pursuant to NDCC Section 20.1-02-05.1,
the Budget Section approve the Game and Fish
Department purchase of 65.35 acres in Morton
County and 160 acres in Grand Forks County.
Senators Holmberg, Fischer, Grindberg, Kilzer,
Krebsbach, Lindaas, Mathern, Nelson, Robinson, and
Wardner and Representatives Bellew, Berg, Boucher,
Carlson, Dosch, Glassheim, Hawken, Kaldor, Kreidt,
Martinson, Metcalf, Monson, Onstad, Skarphol,
Thoreson, Wald, Wieland, and Williams voted "aye."
Senator Bowman and Representatives Klein, Meyer,
and Pollert voted "nay."
DEPARTMENT OF HUMAN SERVICES
Status of Medicaid Management
Information System
Ms. Carol K. Olson, Executive Director,
Department of Human Services, presented
information regarding the status of the Medicaid
management information system project. She said
the go-live date for the new system has been delayed
to April 2011.
Ms. Jennifer Witham, Director, Information
Technology Services, Department of Human Services,
presented information regarding a request for Budget
Section approval to spend $2,172,584 of Medicaid
management information system project contingency
funds pursuant to Section 4 of 2007 Senate Bill
No. 2024. She said the 2005 Legislative Assembly, in
House Bill No. 1012, appropriated $29,188,859, of
which $3,667,820 was state matching funds from the
permanent oil tax trust fund, to the Department of
Human Services to rewrite the Medicaid management
information system. The 2007 Legislative Assembly,
in Senate Bill No. 2024, provided additional funding of
$31,072,641, of which $3,643,133 is state matching
funds from the general fund, for the project. The
department did not spend all of the state matching
funds during the 2005-07 biennium and was
authorized to continue the unspent funds into the
2007-09 biennium for the project. As a result, the
department used these funds to obtain additional
federal matching funds of $2,267,871 for the project.
Total funding available for the project is:
State
Match
Federal
Funds Total
2005-07 appropriation $3,667,820 $25,521,039 $29,188,859
2007-09 appropriation 3,643,133 27,429,508 31,072,641
Additional federal
matching funds
2,267,871 2,267,871
Total $7,310,953 $55,218,418 $62,529,371
Ms. Witham said hardware and software for the
project were purchased by the Information
Technology Department (ITD) with loan proceeds
approved by the Budget Section in October 2007.
She said the ITD loan will be repaid from collections of
a hosting fee charged to the Department of Human
Services. She said the hosting fee was initially
budgeted as an operating expense; however, due to
the delayed schedule, the fee must now be included in
project costs. She said the department must also pay
the annual software maintenance fee for the
purchased software. She said the department will
begin paying these fees in November 2009. She said
of the $2,172,584 requested, $512,550 is from the
general fund and the remainder from federal funds. A
copy of the information presented is on file in the
Legislative Council office.
In response to a question from Representative
Monson regarding the payment of an annual software
maintenance fee for software not yet placed in
service, Ms. Witham said ITD requested, but was
unable to negotiate, a waiver of the fee from IBM and
Oracle.
In response to a question from Senator Kilzer,
Ms. Witham said the project is reimbursed at
90 percent, but the hosting fee was budgeted as an
operational cost and therefore is reimbursed at
75 percent. She said project software costs are also
reimbursed at 75 percent.
In response to a question from Representative
Skarphol, Ms. Witham said the original appropriation
included a 10 percent contingency, or approximately
$5.6 million. Based on the project's 90 percent match,
she said, the general fund portion of the 10 percent
contingency is approximately $560,000. She said the
department is requesting $512,550 of the general fund
portion of the contingency funding. She said the
$512,550 is needed to match the federal portion of the
contingency.
Ms. Witham provided the following project funding
summary through June 2009:
Description Budget
Spent
Through
June 2009 Remaining
General fund $3,643,133 $2,647,098 $996,035
Federal funds 55,218,418 28,584,567 26,633,851
Other funds 3,667,820 1,063,431 2,604,389
Total $62,529,371 $32,295,096 $30,234,275
Ms. Witham said the amount remaining has been
continued into the 2009-11 biennium.
In response to a question from Representative
Pollert, Ms. Witham said the department is negotiating
with the vendor--Affiliated Computer Services (ACS)--
regarding the additional costs associated with keeping
the current system updated beyond the scheduled
project completion date included in the contract. She
said the contract does not include a penalty clause but
includes sections that address remedies.
Ms. Witham provided information regarding other
states' Medicaid management information system
implementation projects. In July, she said, the state of
Nebraska canceled a contract with its provider when it
was determined the provider could not deliver on the
product. She said both Oregon and Maine have new
Budget Section 9 September 15, 2009
systems in place but are experiencing problems with
the accuracy of the payments. She said the state of
Washington has been using a multiphased approach
to implementing its new system and has experienced
delays in each phase implemented.
In response to a question from Representative
Skarphol, Ms. Witham said ACS was not the project
vendor in the states experiencing difficulties. She said
the Enterprise System, which is the new system
brought to the market by ACS, is also being
implemented in Alaska and New Hampshire.
In response to a question from Senator Mathern,
Ms. Witham said federal changes known at the time of
the bid were included in the request for proposal.
However, she said, new federal changes would be
implemented by change orders to the contract.
In response to a question from Representative
Monson, Ms. Witham said improved edits on claims
are expected to lead to savings with the new system.
Mr. Mark Boxer, Senior Vice President of Global
Technology Services, Affiliated Computer Services,
presented information regarding reasons for the delay
in the implementation of the Medicaid management
information system, improvements ACS has made in
its management of the project, and its effort to better
communicate with the Department of Human
Services. A copy of the information presented is on
file in the Legislative Council office.
Mr. Boxer said the delays were caused by a
combination of circumstances. He said ACS
augmented its own application development group
with a partner that did not deliver code of an
acceptable commercial quality. He said ACS had to
redevelop modules not delivered by the subcontractor
which required additional time. He said the Medicaid
management information system effort also includes a
significant number of parallel activities. He said to
perform these activities, ACS has had to sequence
the work across modules and interfaces. He said due
to the complexity of the system, testing and making
corrections is taking longer than expected.
Mr. Boxer said a project of this magnitude and
complexity poses many risks. He said ACS cannot
guarantee there will not be additional delays. He said
ACS has taken steps to manage those risks that
include improved development and testing, more
rigorous program management, deliberate quality
assurance measures, and improved talent deployment
and staffing.
Mr. Boxer said ACS will work to improve
communication with the Department of Human
Services team and plans to meet with the team every
two weeks. He said the meetings will review specific
metrics and will provide the team an opportunity to
review ACS's progress.
Mr. Boxer said ACS intends to honor its
agreement. He said his appearance before the
Budget Section is to convey ACS's commitment to
completing the development and implementation of
the new Medicaid management information system.
In response to a question from Senator Mathern,
Mr. Boxer said the underlying causes for the delay in
implementation include the subcontractor's inability to
deliver quality code, the complexity of the system, and
inaccurate time estimation relating to the project.
In response to a question from Representative
Pollert, Mr. Boxer said the North Dakota project will
include additional functionality but is similar to the
projects in New Hampshire and Alaska. He said
similar factors are also causing delays in the
development of systems in those states as well. He
said there is a core set of code that is being
developed to be used by all of the states. He said
ACS will start with this core set of code and add the
additional functionality required for each state. He
said ACS is committed to meeting the April 2011
completion date. He said there continues to be risk,
but ACS has implemented methods and mechanisms
to mitigate the risk.
In response to a question from Representative
Skarphol, Mr. Greg Bryant, Regional Vice President
for Government Health Care Services, Affiliated
Computer Services, said core code attributable to
federal statute is generally 75 to 80 percent of the
project with the remainder of the project attributable to
individual state policies. He said the portion
attributable to the state depends on the specific
policies the state chooses to implement in addition to
the Medicaid requirements. He said federal mandates
that were unknown at the time the project was bid
would require a change order. He said ACS has
delineated the cost of the change orders and whether
the changes are attributable to federal law changes or
state requests. Representative Skarphol asked the
Department of Human Services to provide information
regarding change orders and whether the changes
are attributable to federal law changes or state
requests.
In response to a question from Senator Fischer,
Mr. Bryant said the contract includes a one-year
warranty, which will begin on the completion date of
the system in April 2011.
Representative Berg asked that ACS
representatives continue to provide periodic updates
to the Budget Section as the Medicaid management
information system project continues.
It was moved by Representative Berg,
seconded by Senator Nelson, and carried on a roll
call vote that the Budget Section approve the
Department of Human Services' expenditure of
$2,172,584 of project contingency funds, of which
$512,500 is from the general fund, pursuant to
Section 4 of 2007 Senate Bill No. 2024. Senators
Holmberg, Bowman, Grindberg, Kilzer, Krebsbach,
Lindaas, Mathern, Nelson, O'Connell, and Wardner
and Representatives Bellew, Berg, Boucher, Carlson,
Dosch, Glassheim, Hawken, Klein, Kreidt, Martinson,
Metcalf, Meyer, Monson, Onstad, Pollert, Skarphol,
Thoreson, Wald, and Wieland voted "aye." Senator
Fischer voted "nay."
Budget Section 10 September 15, 2009
INFORMATION TECHNOLOGY
DEPARTMENT ANNUAL REPORT
Mr. Mike Ressler, Deputy Chief Information Officer,
Information Technology Department, presented
information regarding a summary of the annual report
of the Information Technology Department pursuant to
NDCC Section 54-59-19. A copy of the report
presented is on file in the Legislative Council office.
He said ITD began as Central Data Processing in
1969 and over the last 40 years evolved into a
separate department. He said ITD billings for fiscal
year 2009 totaled $46.5 million. He said the majority
of revenue is generated from computer hosting and
software development service fees. He said the
2009 Legislative Assembly provided funding to
upgrade Ethernet bandwidth at kindergarten through
grade 12 school districts throughout the state. He
said a majority of school districts were connected and
many invested in video equipment to take advantage
of the increased bandwidth. He said the rates
charged for fees and services by the department
compare favorably to those charged by surrounding
states.
HEALTH INFORMATION TECHNOLOGY
OFFICE AND ADVISORY COMMITTEE
Ms. Lisa Feldner, Chief Information Officer,
Information Technology Department, presented
information regarding the Health Information
Technology Office, the Health Information Technology
Advisory Committee, and the status of health
information technology activities pursuant to 2009
Senate Bill No. 2332. She said the Health Information
Technology Advisory Committee was formed in 2006
and reauthorized by the 2009 Legislative Assembly.
She said the committee is comprised of six working
groups, including security, privacy, and policy; health
information exchange; communications; stakeholders;
standards; and finance. She said the committee has
filed a letter of intent to apply for federal fiscal stimulus
funding through the federal Department of Health and
Human Services. She said the grant would provide
funding to create a health information exchange in the
state. She said, if approved, the state could receive
from $4 million to $40 million. She said the committee
has contracted with a consulting group to assist with a
health information exchange plan. She said the
committee intends to complete the health information
exchange plan in October. She said the federal grant
is due by October 26, 2009.
STATUS OF THE GREAT PLAINS
APPLIED ENERGY RESEARCH CENTER
Mr. Paul Govig, Director, Division of Community
Services, Department of Commerce, provided
information regarding the status of the construction of
the Great Plains Applied Energy Research Center,
including the extent to which nonstate matching funds
have been made available for the project pursuant to
2009 House Bill No. 1350. He said the project is
currently in the request for proposal phase which is
being coordinated by the city of Bismarck.
Mr. Bill Wocken, City Administrator, City of
Bismarck, said the Great Plains Applied Energy
Research Center represents a link between energy
research generated in the laboratory and the
application of new energy concepts in the field. He
said the center will test energy technology
applications on a small scale so they may be more
reliably implemented in the field. He said the city of
Bismarck and project partners applied for and
received a grant from the federal Economic
Development Administration to complete a feasibility
study. He said the study will address the feasibility
and financial sustainability of the project concept and
if the project is deemed feasible, prepare a long-term
business plan. He said the grant will provide
$100,000 in federal funds to be matched by $100,000
from the city of Bismarck and six North Dakota energy
companies. He said responses to a request for
proposal for the services of an energy consultant to
complete the feasibility study are due September 18,
2009. He anticipates the feasibility study to be
completed by January 2010. He said no state funds
will be spent until the feasibility study and business
plan are completed.
ANNUAL AUDITS OF RENAISSANCE
FUND ORGANIZATIONS
Mr. Gordon D. La France, Manager, Renaissance
Zone Program, Division of Community Services,
Department of Commerce, presented information
regarding annual audits of renaissance fund
organizations pursuant to NDCC Section 40-63-07(9).
A copy of the information presented is on file in the
Legislative Council office. He said there are
45 renaissance zone cities, of which 7 have at least
one renaissance fund organization. He said the city of
Fargo has three renaissance fund organizations
having approved their second renaissance fund
organization in 2008 and third in 2009. He said the
original $2.5 million in renaissance credits approved
by the 1999 Legislative Assembly was allocated as of
June 2008 which triggered the release of the credits
authorized by the 2003 Legislative Assembly. He said
the third set of credits, authorized by the
2009 Legislative Assembly, has been allocated to
cities with populations over 30,000. He said $682,500
of the $2.5 million in renaissance credits approved by
the 2003 Legislative Assembly remain available,
$250,000 in Category 1 (0-5,000 population) and
$432,500 in Category 2 (5,001-30,000 population).
He said the entire $2.5 million in renaissance credits
approved by the 2009 Legislative Assembly remains
available in Category 3 (over 30,000 in population).
He said independent auditor's reports of all of the
renaissance fund organizations have been submitted
to the department.
In response to a question from Senator Mathern,
Mr. La France said with regard to funding and policy,
the program is working well and he has no
recommendations for changes. He said some of the
Budget Section 11 September 15, 2009
smaller communities consider the program too much
work, but the department may provide assistance with
the administration of the program.
In response to a question from Representative
Berg, Mr. La France said funds must remain invested
in a renaissance fund for 10 years to be eligible for a
50 percent tax credit. He said funds withdrawn early
are subject to taxation. Historically, he said, funding
from renaissance fund organizations has gone to
projects outside renaissance zones.
TOBACCO PREVENTION
AND CONTROL COMMITTEE
Chairman Holmberg called on Ms. Pat McGeary,
Tobacco Prevention and Control Executive Committee
member, to present information regarding the
implementation of the comprehensive tobacco
prevention and control plan pursuant to 2009 House
Bill No. 1015. A copy of the information presented is
on file in the Legislative Council office. She said
through September 11, 2009, the Tobacco Prevention
and Control Executive Committee has spent $10,882
of its 2009-11 biennium appropriation for advisory
committee expenses and rent. She said the
committee released the state tobacco plan in
July 2009. She said the advisory committee
prioritized the components of the state plan that will
be addressed during fiscal year 2010, reviewed
applications for the tobacco prevention and control
local grants program, and awarded nearly $3 million to
28 local public agencies or cooperating public health
agencies. She said the executive committee has:
• Signed a contract with the State Department of
Health to serve as the fiscal agent for the
committee;
• Leased office space at the North Dakota
Agriculture Foundation Building;
• Awarded contracts totaling $940,000 to 28 local
public health units to support the
implementation of Public Health Service
guidelines;
• Issued contracts for the tobacco prevention and
control local grants program;
• Worked with the State Department of Health
and local agencies to develop tools for
implementation of the Public Health Service
guidelines and the comprehensive tobacco-free
school policy; and
• Posted the job announcement for the executive
director position.
Ms. McGeary said the executive committee is
developing guidance for a special initiative grants
program to provide funding for special projects to
benefit groups with high tobacco use rates.
USE OF STATE, FEDERAL, EMERGENCY,
AND OTHER HIGHWAY FUNDING
Mr. Francis Ziegler, Director, Department of
Transportation, presented information regarding the
anticipated use of state, federal, emergency, and
other highway funding during the 2009 construction
season pursuant to 2009 Senate Bill No. 2012. A
copy of the information presented is on file in the
Legislative Council office. He said 2009
transportation programs include regular construction
projects, American Recovery and Reinvestment Act of
2009 projects, and emergency relief projects.
Mr. Ziegler said the 2009 regular construction
program includes 199 projects at a cost of
$260 million, including $69.4 million for urban road
improvement and nearly $18 million for county road
improvements, including the replacement of 11 county
bridges.
Mr. Ziegler said the department has received an
allocation of approximately $170.1 million for roads
and bridges through the American Recovery and
Reinvestment Act of 2009. He said the department
has identified 99 projects totaling $90 million for 2009,
including $60.6 million for state projects, $15.7 million
for urban projects, and $13.7 million for county
projects. He said the department anticipates the
remaining $80.1 million of federal fiscal stimulus funds
will be spent for projects in 2010.
Mr. Ziegler said the department is continuing its
review of emergency relief projects and estimates the
total cost of statewide emergency relief projects, not
including the Devils Lake Basin area, is approximately
$22 million.
EMERGENCY SNOW REMOVAL GRANTS
Chairman Holmberg called on Major General David
Sprynczynatyk, Adjutant General, to provide
information regarding emergency snow removal
grants distributed to counties, townships, and cities
pursuant to 2009 Senate Bill No. 2012. He said
grants were provided to those counties and cities that
during the first quarter of 2009 incurred costs
exceeding 200 percent of their average cost for snow
removal for the same period over the past five years.
He said the final payments have been made and a
total of $7.8 million has been distributed to 123 cities,
40 counties, and 2 tribal regions. He said 17 cities,
13 counties, and 2 tribal regions either did not request
assistance or did not qualify. A copy of the report is
on file in the Legislative Council office.
FLOOD DISASTER-RELATED
EXPENDITURES
Major General Sprynczynatyk presented
information regarding 2009 flood disaster-related
expenditures, transfers, reimbursements, and general
fund deposits pursuant to 2009 Senate Bill No. 2444.
A copy of the report is on file in the Legislative Council
office. He said disaster costs include four
components--emergency measures, public assistance,
mitigation, and individual assistance. He said
an original estimate of total disaster costs of
$166 million was provided during the 2009 legislative
session. He said current estimates total
approximately $106 million, including $33 million for
emergency measures, $50 million for public
assistance, $11 million for mitigation, and $12 million
for individual assistance. However, he said, the total
Budget Section 12 September 15, 2009
may increase based on more recent Federal
Emergency Management Agency (FEMA) estimates
of the public assistance component.
Major General Sprynczynatyk said actual costs to
date total $75.9 million, including $32.3 million for
emergency measures, $29.1 million for public
assistance, $3 million for mitigation, and $11.5 million
for individual assistance. He said FEMA has
established $78.3 million as the federal cost
requirement. He said when the federal cost
requirement is exceeded, the federal match will
increase from 75 percent to 90 percent. He said the
federal portion of the actual costs to date totals
$67.1 million, or 85.6 percent of the $78.3 million
threshold for the increased federal cost-share. He
said the department anticipates the federal match for
most of the flood response and flood recovery costs
will be 90 percent.
Major General Sprynczynatyk said other federally
disbursed funds that do not qualify as part of the
federal cost requirement for federal participation
include $13.2 million in Small Business Administration
loans and $13 million in national flood insurance
program claims.
Major General Sprynczynatyk said there have not
yet been any reimbursements to the general fund of
funds spent for emergency response by the
Department of Emergency Services, but there may be
funds returned to the general fund when costs are
finalized.
VETERANS' HOME REPORT
Chairman Holmberg announced that the
Legislative Council staff distributed to each member a
written summary report from the Veterans' Home
project manager regarding the status of the Veterans'
Home construction project pursuant to 2009 Senate
Bill No. 2007. A copy of the report is on file in the
Legislative Council office.
COMMITTEE DISCUSSION
AND STAFF DIRECTIVES
Chairman Holmberg announced future meetings of
the Budget Section are tentatively scheduled for
Tuesday, December 15, 2009, and Thursday,
March 11, 2010.
Representative Kaldor asked that additional
information be provided regarding the availability of
federal Unemployment Insurance Modernization Act
funds. Chairman Holmberg requested that Job
Service North Dakota be asked to provide information
regarding these funds at the next Budget Section
meeting.
It was moved by Representative Wald,
seconded by Senator Fischer and carried on a
voice vote that the Budget Section meeting be
adjourned subject to the call of the chair.
Chairman Holmberg adjourned the meeting at
2:09 p.m.
___________________________________________
Sheila M. Sandness
Fiscal Analyst
___________________________________________
Allen H. Knudson
Legislative Budget Analyst and Auditor
ATTACH:1
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