AN ACT to provide an appropriation for defraying the expenses of the various divisions under the supervision of the director of the office of management and budget; to create and enact a new section to chapter 54-44 of the North Dakota Century Code, relating to a state facility maintenance fund; to amend and reenact subsection 1 of section 10-30.5-02 of the North Dakota Century Code and section 9 of House Bill No. 1012, as approved by the sixty-ninth Legislative Assembly, relating to the North Dakota development fund and infant and toddler care provider support payments; to repeal section 11-38-08 of the North Dakota Century Code, relating to county achievement days; to provide for a transfer; to authorize a line of credit; to provide an exemption; to provide for a report; and to declare an emergency.
HB 1015 is the Office of Management and Budget appropriation bill for the 2025-27 biennium. It funds OMB operations and related statewide items, including salaries and operating costs, a new and vacant FTE pool, guardianship grants, community service supervision grants, state employee child care benefits, a student internship program, and several one-time projects. The bill also includes funding and authority for major capital and facility-related items such as a new state facility maintenance fund, Capitol building and governor’s residence improvements, rent/moving/space reconfiguration costs, and a large state hospital project.
Beyond the core appropriation, the bill creates a new state facility maintenance fund and directs a transfer into it from the strategic investment and improvements fund. It also authorizes a Bank of North Dakota line of credit of up to $100 million for construction of a new state hospital, establishes a steering committee to oversee that project, and gives OMB managerial control. The bill amends the North Dakota development fund statute to reference the beyond visual line of sight uncrewed aircraft system program, and it revises the infant and toddler care provider support payment program to clarify eligibility, payment amounts, and reporting. It also repeals the county achievement days statute and includes several transfers, exemptions, reporting requirements, and emergency clauses.
The bill’s impact on state law is broad, but primarily fiscal and administrative. It appropriates general and special funds, creates a new dedicated maintenance fund, changes how certain unused appropriations may be carried forward, and sets rules for executive branch staffing pools and compensation adjustments. It also shifts money among state funds, authorizes borrowing for a capital project, and modifies existing economic development and child care support provisions. In practical terms, it affects OMB, executive branch agencies, state facilities, the Department of Corrections and Rehabilitation, child care providers, and entities tied to the state hospital and development fund programs.
The overall sentiment around the bill appears generally supportive but not unanimous. The bill passed both chambers with substantial majorities, indicating broad legislative backing for the budget package and its major capital and workforce provisions. At the same time, the Senate vote was notably closer than the House vote, suggesting some reservations about the size and scope of the appropriations, especially the large facility and hospital-related spending.
The main points of contention are likely the scale of spending, the use of transfers and one-time funding, and the large state hospital financing structure. The $300 million state hospital project, the $100 million line of credit, and the contingent repayment tied to a federal court judgment are the most significant and potentially controversial items. Other likely areas of debate include the new facility maintenance fund, the staffing pool rules, and the amendment to the infant and toddler care payment program, particularly any concerns about administrative control, future repayment obligations, and the prioritization of state resources.
HB 1015 appropriates funds to the Office of Management and Budget for the 2025-27 biennium and changes multiple statutes and funding mechanisms. It creates a new state facility maintenance fund, authorizes transfers into that fund, amends the North Dakota development fund statute, revises the infant and toddler care provider support payment program, and repeals the county achievement days statute. The bill also establishes new reporting, transfer, and exemption rules for executive branch appropriations, authorizes a Bank of North Dakota line of credit for the state hospital project, and directs several interfund transfers affecting state agencies and capital projects.
The bill appears to have received generally favorable treatment in both chambers, as reflected by strong passage margins in the House and Senate. The votes suggest broad agreement on the need to fund OMB operations, statewide compensation adjustments, facility maintenance, and the state hospital project. However, the narrower Senate margin indicates some unease with the size of the spending package and the large financing commitments embedded in it.
The most likely areas of contention are the bill’s large-dollar capital items and financing mechanisms, especially the state hospital project, the $100 million line of credit, and the contingent repayment tied to a federal judgment. Legislators may also have differed over the creation of the state facility maintenance fund, the scope of executive branch transfer authority, and the revised child care provider support program. The repeal of county achievement days and the amendment to the development fund statute may also have drawn attention, but the hospital financing and overall size of the appropriation appear to be the most significant flashpoints.