The state’s Office of Management and Budget has rolled out a voluntary separation incentive program (VSIP) for state agencies “to provide financial savings to the state by decreasing staffing levels or costs.”
So far, 19 state agencies have opted in to the program – including the state’s largest agency, Health and Human Services.
This is being done because the state proposal won’t have as much money to work with for the next biennium. As the state began the current biennium, there was $1.5 billion in the bank, and now the ending fund balance will be around $400 million.
OMB says it’s “not a time to panic.” But it’s looking for savings, and it remains voluntary.
For the employees of those 19 agencies, employees can file for benefits February 15 through March 31, 2026.
Meanwhile, OMB has begun working on a new revenue forecast, to be used as proposed budgets are built for the upcoming Legislative session. That forecast will be in place before state agencies are given the guidelines for what’s to be included in the Governor’s budget. That will happen later this spring.
Rural Health Grant
Some people are asking if the federal Rural Health grant (part of the “One Big Beautiful Bill”) could be used for other purposes. The answer is no. The nearly $200 million will be spent on the priorities the special session agreed on, and the state could qualify for four more rounds of $200 million, meaning North Dakota could receive up to $1 billion.
Small World
This past weekend, I was one of the moderators at the state Science Bowl competition, sponsored by the Western Area Power Administration. It’s something I have done for years. This year, I was in the room asking questions, as teams from Bismarck High School and Dickinson High School competed. I noticed the captain of the BHS team had an interesting last name: Armstrong. Turns out, she’s the daughter of Gov. Kelly Armstrong. How NoDak is that?
