HHS officials defend FTE block grant, outline $15 million request to retire legacy IT systems

BISMARCK — Department of Health and Human Services deputy commissioner Sarah Stoltz told the Senate Appropriations — Human Resources Division on a budget hearing that the department’s FTE block grant has given program managers “flexibility” to respond to changing staffing needs and that the department is seeking funds to retire aging IT systems.

Stoltz, who identified herself as deputy commissioner for Health and Human Services, told the committee the department used the block grant to convert temporary employees to permanent positions, repurpose long-term vacancies into higher-need roles and to adjust staffing mixes in rural areas where full‑time applicants are scarce. “We were able to fill it with 2 part-time temp positions and repurpose that FTE for an area of greater need,” Stoltz said, describing one example of how the block grant was used.

The discussion came during a hearing on House Bill 1012, the appropriations measure for the Department of Health and Human Services. Stoltz and Chief Financial Officer Donna Auckland provided program and accounting detail, and both repeatedly referenced vacancy and payroll figures taken “as of Dec. 1, 2024” as the basis for reconciliations and the department’s salary roll‑up.

Why it matters

Committee members pressed for specifics because salary and position authority affect how the department can deliver direct services across the state, and because the House reduced parts of the administration’s salary request. Committee chair Chairman…