House appropriations panel reviews carryovers, deferred maintenance and one-time incentives

Committee chair called the House Appropriations — Government Operations Division to order for a briefing and an abbreviated review of requests to carry over prior appropriations and to clarify funding sources for several one‑time expenditures and capital needs.

The committee considered a staff handout that broke a total request into amounts identified as coming from the State Investment Fund (SIF) and the Capital Building Trust Fund: $58,400,000 and $5,350,000, respectively, were cited as the totals staff previously referenced. Joe, a staff member presenting the package, said the handout was “a response to a question from the committee regarding the breakdown of all the items that are requested that would come from SIF and all the items that would come from the Capital Building Trust Fund.”

Why it matters: the committee is sorting which projects should use one‑time SIF dollars versus other sources and which previously authorized but unspent appropriations should be carried forward into the next biennium. Those choices affect the state’s discretionary capital budget and which agency projects move forward this year.

Major items discussed

Pension incentive and SIF appropriateness — Staff described a proposed one‑time incentive for employees who switch from the defined benefit plan to the defined contribution plan during a short election window. Joe said the state would pay “an incentive payment of $10,000 in addition to whatever their fund balance is,” and that the structure of related payments means two of the scheduled payments would fall in the coming biennium. Staff estimated that if everyone eligible accepted the incentive, the total cost could exceed $20 million. Several committee members questioned using SIF for that payment; one member said the general fund might be “more transparent.” Staff responded the office was “ambivalent” about the funding source and had proposed SIF because it is a one‑time cost.

Rent and space reconfiguration on the Capitol grounds — The committee reviewed a rent tally that charges agencies by square footage occupied on the Capitol campus. Joe explained rates reflect actual costs (maintenance, custodial, utilities) and that some buildings, notably the Department of Transportation building, are excluded because DOT owns its own facility. Representative Pyle and others asked about differences in per‑square‑foot rates and whether off‑site leases were included (they are not). The committee discussed a $2.5 million appropriation for space utilization improvements (a general‑fund line) that has not been fully spent; staff said reconfiguring a single floor could cost roughly $400,000–$500,000.

Data processing and IT costs — Staff highlighted roughly $1.56 million in increases tied to data processing costs billed by the state IT office (NDIT) and vendor subscription/maintenance costs for systems such as the procurement and budget systems. Joe said some increases stem from rate changes at NDIT, and some stem from ongoing or one‑time vendor costs tied to implementing an e‑procurement system.

Carryover requests and specific projects — Staff asked for carryover authority (no new money, just permission to spend prior appropriations) on several items: - Condition assessment on state buildings: original SIF appropriation of $500,000 from 2019; about $250,000 estimated unspent and requested to be carried over to update condition assessments that underpin deferred maintenance requests. - GEER (Governor’s Emergency Education Relief) funds: about $380,000 unspent; staff said portions funded programs such as a teacher mentorship program and offered to provide a list of funded activities. - Window project: $4,000,000 appropriation with about $3.94 million remaining; staff asked to carry that over. - Space utilization improvements: roughly $2.3 million remaining of a $2.5 million appropriation, with staff describing the fund as intended to partner with agencies to reconfigure office space and reduce off‑site leases. - Boilers and deferred maintenance: staff reviewed a $20 million deferred maintenance appropriation. About $12 million of that had been allocated to a boiler replacement project; of that allocation roughly $4.5 million has been spent and about $7.5 million remains, including work to replace remaining boilers and convert from steam to hot‑water systems, which will require replacing radiators. - Liberty Memorial Building water mitigation: roughly $300,000 identified as part of the deferred maintenance needs and requested for carryover. - Procurement automation (procurement software): an original appropriation of $400,000 with the expectation most of the amount will carry into the next fiscal cycle as implementation continues.

Small statutory appropriation for county 4‑H agents — The committee reviewed a statutory line that requires the Office of Management and Budget to make a small payment to counties for 4‑H programming (historically $500 per county). Staff reported the last payment was in 2021 and that no appropriation existed in subsequent budgets. When a committee member asked whether to keep the statutory language if the money is not being funded, the chair instructed staff to “remove” the section; the transcript records no formal roll‑call vote on that instruction.

Tour of facilities — The committee scheduled a campus tour focused on indoor projects, including the boiler work and other prioritized deferred maintenance sites.

What the committee did and did not decide

- Direction/draft decisions: Committee members directed staff to prepare carryover language and to remove the small, unfunded 4‑H appropriation from the bill draft (the transcript records the chair saying “Remove”). The committee asked staff to provide more detailed cost information for the remaining boiler work and other deferred maintenance items before final decisions. - No formal recorded votes: The transcript records discussion and directions but no formal motions with recorded roll‑call votes on the appropriation items discussed during this session.

Sources and speaker notes

All quotes and attributions come from committee staff and members during the Appropriations — Government Operations Division meeting. The committee chair led the session; Joe and Becky provided staff detail and answered questions; Representatives Pyle, Bosch, Brandenburg, Brammer and Grant participated in discussion and questions.

Ending

Committee members agreed to review updated long sheets and to take a facilities tour. Staff will return with further detail on the boilers and the proposed carryovers; the committee left open possible adjustments (including reductions) to some carryover requests after members and staff review actual unspent balances.