House Appropriations Government Operations panel dry-runs State Auditor budget amendment; no vote taken

At a meeting of the House Appropriations Committee’s Government Operations Division, members reviewed Amendment 02/2004 (statement of purpose 25.0148.01001) to the State Auditor’s budget but did not take action on it during the session.

The amendment would increase the general fund by $1,669,295 and make a mix of staffing and operating adjustments across special, federal and general funds. Representative Jason Pyle, who carried the bill, walked the committee through line-item changes, including pay and benefit increases, staffing shifts, a federally funded mineral-royalty auditor position and one-time spending for peer review and audit software replacement.

Why it matters: the amendment reallocates FTEs and funds that affect audits of small political subdivisions, cybersecurity assessments for state technology and university systems, and the state auditor’s operating capacity. Representatives discussed how two FTEs moving onto the general fund would affect property tax relief recognition for small communities.

Key changes discussed

Representative Pyle said the amendment adds $219,998 for continuing wages and salaries (described in the meeting as the 4% budgeted adjustment for the 2023–25 biennium) and $927,774 for salary benefit increases for health and retirement. The bill reduces five FTE in the local government division (special-funded) with a budget reduction of $1,149,205, and adds two general-fund FTE to support audit reviews of small political subdivisions with a cost of $412,845.

Pyle told the panel the amendment includes one full-time mineral royalty audit position budgeted at $99,686 in salaries and $107,202 total with operating expenses; he said that position is 100% federally funded for one year and that "if this person isn't hired, then the funds do not come in, and we, as the state, do not cover any of that person's wages or benefits." The committee also reviewed one-time spending for a peer review by the National State Auditors Association at $25,000 and an appropriation to update end-of-life audit workpaper software (TeamMate+).

Cybersecurity and IT spending

Committee members asked about information-technology items. The amendment includes an $80,000 increase for NDIT-related expenses and a separate appropriation to cover cybersecurity/security assessments for the North Dakota Information Technology department and the North Dakota University System of $435,000. A committee staff member noted the IT consultant funding is on its own appropriation line and appears in the bill draft as $585,000 after adding $135,000.

Property tax relief and other clarifications

Representative Dan Bosch pressed for clarity on where IT and other operating adjustments land on the long sheet. Members agreed that shifting two FTE from other funds to the general fund could be framed as property tax relief for the state’s smallest communities; Representative Bosch asked that the floor statement explicitly note that effect so it is captured in the public record.

Next steps

Chairman Munson said the panel would not take action at the morning session and that the amendment may be offered to the full committee later in the week. Representative Pyle said they were conducting a "dry run" and would move the amendment on the floor if everything looked right. The auditor was present for the meeting and is scheduled to appear later in the day for further questions.

Ending

No formal motion or vote on Amendment 02/2004 was taken during the Government Operations Division meeting. Committee members said they expect to return to the amendment in a future full committee session.