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PERS budget compromise reached

A special committee has reached a compromise on the budget bill for the Public Employees Retirement System.

It paves the way for what legislative leaders hope is a short reconvened session next Tuesday.

The bill was left hanging when lawmakers left town last month. The House had put a number of policy items on that budget bill from an earlier bill the Senate killed. Many of the items stemmed from the PERS board’s decision to go with Sanford Health as the insurance carrier for state employees, rather than Blue Cross Blue Shield.  The special committee removed most of those items – before recommending the compromise.

"At noon hour, I wouldn't have bet on us coming to an agreement," said Senate Majority Leader Rich Wardner (R-Dickinson), who chaired the special committee. "But everybody was open, and were willing to negotiate. It was a very open process and we were able to find resolution."

Attorney General Wayne Stenehjem issued an opinion saying PERS could continue to operate without a budget bill -- because the agency has a continuing appropriation.

"We need to be in charge of all budgetary items," said House Majority Leader Al Carlson (R-Fargo).

The compromise would add two legislators to the PERS board. The House had wanted four lawmakers -- and proposed removing the State Health Officer and an employee of the Attorney General's office.

Carlson says this is a good compromise.

"We've put a spotlight on the health insurance," said Carlson. "There's a spotlight on Sanford and their new system."

Wardner says he really doesn't like having legislators on the PERS board.

"You know, if you're in a negotiation, you can't have everything," said Wardner. "In the compromise, that's what happens."

The Legislative Management Committee will convene Wednesday to finalize the reconvened session, scheduled June 16th at 8 AM.

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