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Guardianship providers urge $9.1M appropriation for PASS program, warn of capacity shortfall
Summary
Nonprofit guardianship providers urged the Senate Government Operations Committee to raise PASS funding to $9.1 million to support a $20-per-day reimbursement rate and expand the number of protected adults who receive court-appointed guardianship services.
Nonprofit guardianship providers asked the Senate Government Operations Committee to increase state PASS funding to $9.1 million so certified guardians can accept more court appointments for adults who lack capacity and who meet program eligibility.
Margo Hout, founder of Guardian Angels Incorporated and president of the Guardianship Association of North Dakota (GAND), asked the committee for support to raise the appropriation and said a higher daily reimbursement rate would allow entities to hire and certify more professional guardians.
"I respectfully urge your approval for the appropriation level of $9,100,000," Hout told the committee, citing an increase in caseloads and a cap the program places on the number of protected persons each entity may serve.
Scott Bernstein, executive director of Guardian and Protective Services, said the increase is needed to sustain services and to expand capacity statewide. Bernstein provided a detailed operational critique of how PASS funds have been managed and warned that inconsistent budgeting and prior mid-biennium rate adjustments have driven some providers to emergency borrowing.
"9,100,000.0 is a realistic fact based amount," Bernstein said. He explained that at $20 per day the $9.1 million appropriation would enable providers to serve an estimated 622 additional protected persons under PASS and that the current appropriation of $7.1 million covers roughly 573 people at the present $17-per-day reimbursement.
Providers described operational challenges tied to how PASS funding flows. Historically, the North Dakota Association of Counties has acted as the administrative conduit for PASS reimbursements; providers said the association previously advanced funds to cover shortfalls but now has said it will no longer float loans when the appropriation is depleted. Providers also raised concerns about parallel judiciary funding for initial guardianship establishment costs (a separate fund that covers up to $3,000 in legal fees and that was nearly exhausted), which could expand demand for PASS payments more quickly than the appropriation is increased.
What the committee heard
- Demand and capacity: Providers said demand exceeds supply and listed hundreds of individuals statewide on waiting lists; Bernstein and others said about 60 people were actively awaiting placement in provider lists maintained by the coalition. GAND reported membership of 55 corporate guardianship entities.
- Rate-history and risk: Witnesses described prior mid-biennium reductions to the per-day reimbursement rate, which they said caused small agencies to incur debt or curtail services; that instability, providers said, discourages new, reputable providers from expanding their caseloads.
- PASS mechanics: PASS reimburses nonprofit guardians for serving protected persons who meet program eligibility; testimony confirmed that the Association of Counties currently administers PASS reimbursements and that the judiciary runs a separate Guardianship Establishment Fund to offset initial legal costs.
Committee context and fiscal interactions
Committee members noted the interplay between PASS funding and separate judiciary requests for establishment funds. Bernstein said the judiciary’s request for additional establishment funding could unintentionally open the door to many more guardianship cases without matching operational PASS funding for long-term guardianship reimbursements. Providers recommended that any expansion of establishment funding be coupled with a corresponding plan for PASS operations to avoid creating unfunded caseload growth.
Requests and next steps
Providers asked the committee to consider the $9.1 million figure tied specifically to a $20-per-day reimbursement rate and to coordinate budgeting with the judiciary and with the Association of Counties to ensure predictable cash flow and avoid mid-biennium rate erosion.
No committee votes occurred at the hearing. Providers said they would engage with committee staff to provide any additional cost or caseload data the committee needs to evaluate the request.
