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WSI emphasizes safety, stable finances and seeks one-time IT and facility funds in HB1021 hearing

2126009 · January 13, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Workforce Safety & Insurance Director Art Thompson told the committee WSI remains financially strong, with growing employer accounts and declining claim rates; WSI requested $5.2 million for continued CAPS development, $1.4 million for MyWSI enhancements and $2 million for building repairs in House Bill 1021 testimony.

Art Thompson, director of North Dakota Workforce Safety & Insurance (WSI), presented the agency’s budget overview and one-time requests during the Appropriations — Education & Environment hearing on House Bill 1021.

Why it matters: WSI is a special-fund agency (it receives no general-fund dollars) that administers the state workers’ compensation system and pays benefits from employer-paid premiums. The office’s funding, reserve levels, and IT investments affect employers’ premium rates, injured-worker services, and long-term liabilities for catastrophic claims.

Thompson told the committee WSI covers roughly 27,159 employer accounts and a covered workforce of about 412,000; the agency reported about 17,000 claims filed in the last fiscal year and said claims per 100 covered workers are trending down. He described WSI as focused on safety programs and outreach, noting the agency has issued more than $76 million in safety grants since 2005 and said safety-discount participants received roughly $24 million in premium discounts in 2024.

Thompson summarized WSI’s financial position: assets of about $2.2 billion, a long-tail set of high-value open claims (WSI identified reserves on a small number of claims in the multiple millions), and a history of returning surplus funds to premium payers. He said WSI has returned substantial dividends over the past two decades and reported that, when the fund exceeds statutory surplus requirements, WSI declares dividends for employers.

On budget asks, Thompson described three one-time requests the agency seeks in HB1021: $5.2 million to continue development of the claims-and-policy system (CAPS), $1.4 million to complete MyWSI extranet enhancements, and $2.0 million for building repairs and improvements at WSI’s Century Avenue facility in Bismarck. He gave detail on building needs, including about $700,000 in roofing repairs, roughly $1.0 million to replace aged carpeting across four floors, ADA-related bathroom upgrades and exterior block repairs.

Thompson said WSI is not requesting additional FTE authority and noted the agency typically manages staffing by assessing retirements and workload rather than hiring to a headcount. He described current authorized FTE authority (260) and said the agency’s current staff is about 245. He also said the agency expects CAPS to be fully implemented around 2031 while MyWSI’s core build is expected to complete by the end of the 2027 biennium.

On service and outcomes, Thompson emphasized rapid claim resolution and low litigation rates: he said WSI is among the least litigious workers-compensation systems in the nation, with roughly 0.5% of decisions moving to administrative hearing, and that customer-satisfaction survey scores are high (employers 4.41/5; injured workers 4.24/5; medical providers ~3.95/5).

What the committee did: The hearing provided an overview and Q&A; committee members asked about the timing and fairness of facility repairs, how safety grants and training affect premium discounts, and how the agency manages vacant FTE funding. No appropriation vote was taken at this hearing.

What’s next: HB1021 will proceed through the appropriations process. Thompson provided committee members a legislative-session web page of agency materials and offered to follow up on technical budget questions.