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Centers ask for provider‑inflation funding; lawmakers press on residential contracts and building repairs
Summary
Human service center leaders described inflationary pressure on contracts for recovery and residential vendors, a $972,000 building bathroom remodel estimate for Southeast's Fargo facility, and a $1.3 million step‑up in a 3.1 residential contract that committee staff partly offset with federal funds.
Regional human service center directors and department budget staff told the Appropriations Committee that inflation and higher operating costs for contracted residential and recovery vendors are driving significant budget requests.
Southeast interim director Elena Zeller said the Office of Management and Budget hired SiteLogic to assess the center's state‑owned Fargo building and quoted $972,000 to remodel 12 commercial bathrooms that are original to a 1992 build. She provided that figure in response to committee questions about a capital/decision package to address building condition.
Committee accountant Rebecca Bondi and budget staff Courtney Peterson explained components of the centers' funding requests. Bondi identified a roughly $1.3 million increase tied to a next‑step 3.1 residential contract; later in the hearing she and Peterson said some of the general‑fund need was mitigated by identifying federal SUPTRS (substance‑use) grant funds that reduced the net state request.
Elena Zeller also described larger inpatient contract increases for Prairie St. John's and a shift to general‑fund support for an increased Clay County detox contract, historically paid from the substance‑use block grant, in order to remain compliant with federal reporting.
Southeast and other centers also pointed to equipment and professional development increases: several centers converted temporary positions to FTE and budgeted for additional training, tuition reimbursement and onboarding costs. Centers said they had increased overtime and travel related to outreach, and that provider vendors faced higher food, maintenance and staffing costs that made some vendor contracts unsustainable without additional funding.
Why it matters: The committee is weighing requests that would expand funding for contracted treatment beds and capital improvements; presenters said failing to fund provider inflation risks losing contracted beds and vendor relationships that support crisis and residential capacity.
Committee staff asked for and received promised follow‑up detail on the bathroom remodel estimate and contract breakdowns for the 3.1 residential increases.
