[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6363120,"mediaKeyId","2166712-72e2c8cacddfee2deefb64070064a5ee","parentId",2166712,"title","Bank of North Dakota seeks funding tweaks, confidentiality changes and modest capital spending","audioSeconds",1566,"startMs",272000,"endMs",1838000,"viewUrl","/Search/View?dp=1&key=2166712-72e2c8cacddfee2deefb64070064a5ee&start=272&end=1838","thumbnailUrl","https://assets.pipeline.soar.com/2166712-72e2c8cacddfee2deefb64070064a5ee/thumbnail_272000.jpg","articleUrl","/articles/6363120/North-Dakota/Bank-of-North-Dakota-seeks-funding-tweaks-confidentiality-changes-and-modest-capital-spending","mediaUrl","https://secure.pipeline.soar.com/6363120-ffdb300d0831335cd042af8d2032a483/orig.mp4?Expires=1771184509&Signature=XM0L0nuPT6VBdS~mX2ChLEI2iWH0zXEsvpgREU2WtRN0XaFCZZeZVDSIIBFmSPhZs~rkTuLdjyyZgqvxZeaKJ-TvwY74QT38GVxJxMBik6~roG7GCe5tYzsh14YpLqe1~X302avDflYAVU1uzQbB0qbss5MlbUQ9JayK0pMDP--8YHs4I~IFV4fotkqQjEHVD3lEqyuHCEoAFXcYvj0kBTbiS0yc4tQ7T7lTqfCsvNzan4YO82dQiiktJVBiktyNmhq1MiU2DFTrzSQCGhfdj-HOpYiZ5dHCg51aDKQj~Fiyz0cG8avgoo3-Y7kqAFlcFMYta1-PfCAWdBje9N3ImQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Senate Appropriations - Education and Environment Division, ND","date","2025-01-29T00:00:00Z","article","The Appropriations - Education and Environment Division reviewed the Bank of North Dakota’s biennial budget and proposed statutory amendments during a committee meeting, where bank officials asked for limited adjustments to staffing and confidentiality rules and described planned capital spending.

Bank of North Dakota President and CEO Don Morgan told the committee there were no new budget requests beyond the packet the bank had already provided, and that the bank could likely absorb initial cash-management work without adding permanent staff. \"I think we'd be on board with either considering, you know, them temporary or just removing them,\" Morgan said of two positions that had been included in an earlier executive proposal.

The request and why it matters

Bank staff and legislative budget analysts contrasted the Armstrong executive budget with the prior Bergum/Bergham submission. The chief differences discussed were a recommended removal of $600,000 in one-time temporary salaries for cash-management work, a proposed $343,000 “true up” to match historical health-insurance and salary adjustments, and an approximately $4 million capital expenditure request to refresh the bank’s building. Adam, a legislative fiscal staff analyst, noted the bank’s operating budget is largely presented as a single line item; the bank’s separate capital-assets line is roughly $1.5 million.

Confidentiality amendments and program changes

Kelvin Hollitz, the bank’s chief business development officer, outlined three proposed statutory amendments the bank is seeking. The first would align confidentiality protections for the bank’s participation-loan records with those typically afforded to local financial institutions so that the bank can coordinate with local lenders without automatic public disclosure of loan participants. Hollitz said that the bank sometimes functions in the background on participation loans and that public disclosure can identify bank involvement where borrowers and lead lenders expect the bank to be a nonpublic participant.

The second amendment would make amounts of certain insurance coverages confidential — Hollitz cited cyber and liability insurance as examples the bank prefers not to disclose publicly. \"One of the things that we have really focused on in the biennium is thinking about the confidentiality of our records at the Bank of North Dakota,\" Hollitz said.

The third amendment set relates to program changes including a request to increase the allowable interest-rate buy-down for large PACE projects. Bank representatives said the current statutory maximum for a buy-down is $500,000 and proposed allowing up to an additional $1,000,000 for projects with substantial economic impact, while preserving local community buy-in by not increasing the required local match.

Other items discussed included moving the UND Small Business Development Center (SBDC) funding to the bank’s program account and increasing the bank’s SBDC allocation from $1.5 million to $1.9 million to capture the available federal match (bringing total program funding to roughly $3.8 million with federal dollars). The bank also described its preference to avoid requiring staff to pay for internal training events and requested authority to hold up to four staff events per biennium at an estimated total cost of $50,000.

Where the committee is headed

Committee leadership said it would schedule a hearing focused on the proposed confidentiality language to allow public comment. No formal votes or appropriation changes were taken at the meeting.

Ending note

Bank officials emphasized the changes they seek are limited: removing the $600,000 temporary salary request, asking the Legislature to consider a $343,000 true-up, proceeding with planned capital refresh funding, and pursuing confidentiality revisions in statute. The committee said it would publish a hearing notice on the confidentiality proposals.","mediaType","Video","parentTitle","Senate Appropriations - Education and Environment Division Jan 29, 2025\t","oneSentenceSummary","The Appropriations - Education and Environment Division reviewed the Bank of North Dakota’s biennial budget and proposed statutory amendments during a committee meeting, where bank officials asked for limited adjustments to staffing and confidentiality rules and described planned capital spending.","taxTitle","Appropriations - Education and Environment Division, Senate, Legislative, North Dakota","taxId",28899,"location","North Dakota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6363110,"Industrial Commission seeks continued litigation funding, IIJA grid-resiliency grants and grant-management carryovers",1694,6185000,7879000,"/Search/View?dp=1&key=2166712-72e2c8cacddfee2deefb64070064a5ee&start=6185&end=7879","https://assets.pipeline.soar.com/2166712-72e2c8cacddfee2deefb64070064a5ee/thumbnail_6185000.jpg","/articles/6363110/North-Dakota/Industrial-Commission-seeks-continued-litigation-funding-IIJA-grid-resiliency-grants-and-grant-management-carryovers","https://secure.pipeline.soar.com/6363110-2d37bfabaf4ec43a6d6fd328b1cf8c7a/orig.mp4?Expires=1771184509&Signature=FSbdjRw3r3CqMgr~jW3IVyYVCRxDaC9qcFMzlsqQ5~V~U9j2mQMDwUJh6B9ortG8zKqfJSFpdOwBbsyDNdZvzbQBvDO2wijFAnGacJcHW4GtvQZYFjAypCBlhT-snryW2Y-Kccruy~AavxNi00Uj6yL~7HijJeTkSCFtkBLFCREK6oRcI7AX2o7IjRXhOmsPrEysVHU1PLz6RDQ~u3hvjHPPV1~oSmfxsJVV05Yd4Hu3RkuvE9DHqhgKSUrSjoYQ-81NS6kpRi0PQuzxMpJam7NCz6NnJMx7wIMUZZHCHEIqXnQtJ-wiJdEeTWy~9PEsB6tGDmTlLSYpCJOIYxy8~Q__&Key-Pair-Id=KUT5TJCACFTXG","North Dakota Industrial Commission leaders asked the Appropriations - Education and Environment Division to restore or carry forward several budget items tied to litigation, grid-resiliency grants and administrative systems.

Executive-director priorities and litigation funding

Karen Tyler, Executive Director of the North Dakota Industrial Commission, briefed the committee on the commission’s administrative budget and explained a request to split compensation adjustments between the Industrial Commission administrative office and the Public Finance Authority (PFA). Tyler said the commission expects to expend remaining litigation funding: \"To date, we have a little over $2,500,000 of the $3,000,000 that has been spent,\" she told the committee, and she predicted the lignite-related litigation appropriation would likely be fully expended before the end of the biennium.

Tyler summarized active litigation and regulatory matters that drive legal costs, including federal rulemakings (mercury and air toxics standards and regional haze), coal-combustion issues and state responses to other states’ energy legislation.

IIJA grid-resiliency grants and transmission-authority funding

Tyler described the next round of Infrastructure Investment and Jobs Act (IIJA) grid-resiliency grant opportunities and asked the committee to consider available state-match authority. The commission’s request totaled roughly $13.6 million for a next round of IIJA grants (federal grant plus state match components). She noted federal developments may affect some large transmission projects and the administration’s executive orders or federal actions could change the timing of specific awards.

Operational items, software and carryovers

The commission asked to carry forward unspent one-time appropriations for a grant-management software implementation — Tyler estimated a carryover need of about $600,000 into the next biennium — and asked to carry forward remaining funds for a records-digitization initiative and other one-time projects. The commission also described a previously appropriated $3 million for the iPipe pipeline-integrity project, of which only about $100,000 has been spent and the next-phase expenditures are expected in mid-2025.

Where things stand

Tyler said the commission did not request additional FTEs for the admin office but would monitor incoming grant programs that might increase workload and return to the Legislature if resources need to change. The committee did not take final action on the requests during this meeting.

Ending note

Committee members asked follow-up questions about potential continuing litigation needs and funding sources. The commission said it would provide additional detail on bond payment changes, grant implementation schedules and the status of litigation expense drawdowns.","The Industrial Commission’s executive director told the appropriations committee the commission expects ongoing litigation expenses, will request a new round of IIJA grid-resiliency grants requiring state match, and is seeking carryover authority for grant-management and records projects.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6363115,"Housing Finance Agency seeks funds to expand loan-servicing staff, move homeless grants into HIF and boost housing incentives",2544,3696000,6240000,"/Search/View?dp=1&key=2166712-72e2c8cacddfee2deefb64070064a5ee&start=3696&end=6240","https://assets.pipeline.soar.com/2166712-72e2c8cacddfee2deefb64070064a5ee/thumbnail_3696000.jpg","/articles/6363115/North-Dakota/Housing-Finance-Agency-seeks-funds-to-expand-loan-servicing-staff-move-homeless-grants-into-HIF-and-boost-housing-incentives","https://secure.pipeline.soar.com/6363115-114eb5d173536c30bc19f6c64796fdb7/orig.mp4?Expires=1771184509&Signature=c4FbPzk9gRGZ5yAFdVvdURRl~KxGucWZIh7jb5XpbVUkkwewgsuiZscqlfk1BOLQu9pRuC1r6U~M72JriODDbr~WPSXeZm28bo5trnpSZ9J0XrQhfH5v9dL8oeCTBCKaw1Qkbwks4aVaqNwtye~oJRer7Ildqxw9D9AF65uPUqWwA-OpClpeVNfnZN8EilF14THikMekeR73B5UvC-seTimY8K0To7aVSz5rdf9FEcsIyAXgaFsb0CVKnLjVWvGFQWbbrxemuusExf9xTgBYFzrCNeUkMjIOjMgCeaw3oNff6OlBKPjzkYJjDGUWI662MLifgrjDMT-oxzwwPYashg__&Key-Pair-Id=KUT5TJCACFTXG","The Appropriations - Education and Environment Division heard a detailed presentation from North Dakota Housing Finance Agency officials about rapid growth in loan servicing, the agency’s request for additional staff funded from agency earnings, and a push for larger Housing Incentive Fund and homeless-grant appropriations.

Agency leaders summarized growth and risk

Brandon Detloff, Homeownership Director at the agency, described how the agency issues mortgage revenue bonds, acquires loans from participating lenders and services those loans. \"We issue mortgage revenue bonds,\" Detloff said, explaining the agency’s principal funding vehicle for homeownership programs. He told the committee that the agency has 55 participating lenders and that production has increased: the agency funded 1,982 loans last year and sold a little over $500 million in mortgage revenue bonds.

The agency noted its portfolio-servicing workload has increased and now exceeds typical industry servicing ratios. The Mortgage Bankers Association benchmark cited by agency staff was about 835 loans per FTE in 2024; agency staff said their servicing is about 1,031 loans per FTE and projected they will be short three FTEs by the end of the 2027 biennium and five FTEs under projected growth. Brandon said the agency is requesting positions to close those gaps; the agency characterized the requested servicing and bond-accounting positions as funded entirely from agency earnings, not general fund dollars.

Requests for funds and program changes

Jennifer Henderson, Community Grants and Management Director, explained multifamily and homeless programs the agency administers and said the agency is requesting a $40 million appropriation for the Housing Incentive Fund (HIF) and a $10 million appropriation for the North Dakota homeless grant. Henderson said the agency proposes transferring homeless-grant funding into HIF because HIF is an eligible vehicle for those grants and because HIF already has reporting and audit procedures that the Legislature reviews.

Agency officials reiterated a request for additional FTEs. Brandon said two servicing positions were included in the governor’s recommendation and the agency requested two more servicing-related positions plus a senior bond accountant and a business analyst to support their proprietary loan-servicing platform and complex bond accounting.

Impact, priorities and needs assessment

Agency staff highlighted that lower-than-market interest rates on agency loans produce measurable household savings. The agency estimated that their below-market rate in 2024 returned about $4.3 million to borrowers statewide; since 2020 the below-market differential equated to about $14.6 million. Brandon described downstream economic effects tied to home purchases and said a recent North Dakota State University update to the housing needs assessment suggested the state could need up to 20,000 housing units by the end of 2027.

No formal committee action

Committee members asked several technical questions about FTE counts, potential penalties if servicing work is mishandled (the agency noted FHA audits can require reimbursement and suspension of servicing authority if regulatory obligations are not met), and how agency-paid FTEs would be funded. Lawmakers did not take formal votes during the meeting; the agency will return materials and answer follow-up questions as requested by the committee.

Ending note

Agency leaders said their program activity and loan-servicing responsibilities are expanding and asked the Legislature to consider additional HIF and homeless-grant funding and agency-funded FTEs to maintain servicing quality and keep offering below-market financing to North Dakota homebuyers.","Agency officials told lawmakers they need additional staff funded from agency earnings to manage rapid portfolio growth, requested $40 million for the Housing Incentive Fund and asked that the North Dakota homeless grant be transferred into HIF and funded at $10 million.","actionData","errors"]

Article not found

Bank of North Dakota seeks funding tweaks, confidentiality changes and modest capital spending

Industrial Commission seeks continued litigation funding, IIJA grid-resiliency grants and grant-management carryovers

Housing Finance Agency seeks funds to expand loan-servicing staff, move homeless grants into HIF and boost housing incentives