North Dakota Office of Administrative Hearings seeks $150K credit line for cash flow

In a recent meeting of the North Dakota House Appropriations Committee, members engaged in a critical discussion regarding the funding mechanisms for the Office of Administrative Hearings. The meeting, held on March 13, 2025, highlighted the agency's need for financial flexibility amid fluctuating case loads and revenue streams.

Hope Hogan, the Director of the Office of Administrative Hearings, presented a proposal to establish a line of credit with the Bank of North Dakota, allowing the agency to borrow up to $150,000 as needed. This measure aims to manage cash flow effectively, with the stipulation that the interest rate would not exceed the prevailing rates for government entities. Hogan emphasized the unpredictability of case requests and the importance of having access to these funds, even if they are not ultimately needed.

Committee members expressed their support for the proposal, recognizing the unique challenges faced by the agency. Representative Steaman noted the cyclical nature of the agency's workload and suggested that the line of credit could serve as a temporary solution until more stable funding options are explored. However, concerns were raised about the potential implications of introducing general fund appropriations, as this could lead to opposition from other legislators due to the absence of general fund allocations in the current budget.

The discussion also touched on the historical context of the agency's funding, with members acknowledging that past decisions had shifted the agency's financial structure. Representative Miskoff pointed out the stress associated with the current funding model, advocating for a more predictable base level of funding in the future.

As the meeting concluded, the committee members agreed to further evaluate the situation and consider the proposed line of credit as a viable option for the time being. The conversation underscored the ongoing challenges faced by state agencies in securing adequate funding while navigating the complexities of legislative appropriations. The outcome of this discussion may pave the way for future adjustments to the agency's funding strategy, ensuring it can effectively fulfill its responsibilities.