2019-21 Biennium and the 2021 Legislative Session
The 2021 legislative session was the capstone to a tumultuous and busy year for OMB. Leading up to the 2021 session was a year of disruption due to the COVID-19 pandemic that not only disrupted our personal lives, but also our agency business processes. During this time, many OMB team members adapted to a remote work environment and a new approach to serving customers and connecting with their team.
Despite the many challenges, the OMB team rose to the occasion and found a way to continue providing the essential services that keep state government operating and serving our citizens. But we did not just maintain services, we charged ahead with new projects and initiatives. During the 2019-21 biennium, our team achieved many noteworthy accomplishments that improve our services, increase efficiency, or enhance our learning, including the following:
- Launched a new training program for state agencies – OMB Agency Essentials.
- Delivered Leadership Everywhere training to over 3,100 team members.
- Launched a new Gallup team member engagement survey and training program.
- Launched an online onboarding process for new team members.
- Implemented a new Surplus Property marketing module.
- Implemented a new Risk Management software program.
- Launched new transparency dashboards.
- Completed the Capitol south entrance project.
- Completed a space utilization and capitol master plan.
- Completed capitol complex improvements to improve air quality and reduce points of contact to protect team members and the public from the spread of COVID-19.
- Managed the statewide purchasing card program that generated a rebate of $2.8 million in fiscal year 2020.
- Managed the distribution and reporting of $1.25 billion of federal Coronavirus Relief Funds to help the state respond to the public health emergency and support businesses and citizens.
- Consolidated printing operations for several additional agencies.
- Consolidated payroll administration and procurement functions for several agencies.
- Launched a new OMB website.
- Launched a first ever Team ND Connect intranet site to improve and streamline communication to state team members.
Although our budget process was interrupted by the pandemic, it moved forward to develop a comprehensive and forward-looking budget proposal to start the 2021 legislative session. Many of the executive budget proposals were incorporated into the legislative appropriation. Both executive and legislative budgets:
- Strategically invest federal funds to help North Dakota businesses and individuals recover from the pandemic.
- Provide an allocation framework for future legacy fund earnings.
- Provide for a comprehensive bonding package to make long-term investments in North Dakota infrastructure while taking advantage of historically low interest rates.
- Limit ongoing general fund spending.
- Support priorities such as education and property tax relief.
- Provide a balanced budget with no tax increases.
I am truly fortunate to lead such a devoted, hard-working team. The team at OMB works tirelessly, continually innovates and problem solves, and strives to provide exceptional service to the agencies and team members of North Dakota government.
FISCAL MANAGEMENT
Purchasing Card Rebate
The state’s purchasing card program had another banner year with over $157.3 million of total spend for the 2019-20 contract year. The state received a total of $2,818,369 in rebate with the General Fund receiving $833,710. The rest of the rebate was allocated between the colleges and universities, 19 counties, 75 school districts and 10 cities and state boards. This past year was a new record high for the state’s program.
Biennium End Deadline
The end of the 19-21 biennium is fast approaching. OMB will be sending out various letters in the upcoming month on biennium end business and other fiscal business. Agencies will have till July 28 at 5 p.m. to process any old biennium business. More details will be coming in the month of June and July.
Annual Comprehensive Financial Report (ACFR)
The Government Finance Officers (GFOA) and the Governmental Accounting Standards Board (GASB) has discontinued the use of the acronym for the Comprehensive Annual Financial Report (CAFR). Going forward they are recommending the use of the acronym (ACFR) and changing the name of the report to the Annual Comprehensive Financial Report. This will go in effect with the 2021 fiscal year’s report. OMB has replaced all reference to the acronym for the Comprehensive Annual Financial Report with the Annual Comprehensive Financial Report (ACFR) on our website.
RISK MANAGEMENT
Risk Management Legislation
Following the loss of sovereign immunity in 1995, the Legislature established a self-retention fund (Risk Management Fund) to address liability claims against the State. This legislation provided statutory caps on recovery of $250,000 per person, and $750,000 per occurrence. In 1997, the per occurrence caps were increased to $1,000,000.
This past Legislative Session, the statutory caps were increased for both the State and political subdivisions. See 2021 HB 1057. Effective July 1, 2022, the statutory caps for both the State and political subdivisions will increase to $375,000 per person with the per occurrence limit remaining at $1,000,000. Annually thereafter, the statutory caps will increase as follows:
- July 1, 2023 - $406,250 per person and $1,625,00 per occurrence
- July1, 2024 - $437,500 per person and $1,750,00 per occurrence
- July 1, 2025 - $468,750 per person and $1,875,000 per occurrence
- July 1, 2026 - $500,000 per person and $2,000,000 per occurrence
The Legislature took a measured and incremental approach to increasing the limits over time. The higher limits will necessitate greater contributions to the Risk Management Fund in the future although the impact in the upcoming biennium is small.
FACILITY MANAGEMENT
Events
There are traditionally two large events scheduled at the Capitol grounds during the summer: the annual 4th of July fireworks display and Capital A’Fair in August. Please visit the OMB website at www.omb.nd.gov/events for updates on these events as well as a complete list of other events you will enjoy during the summer.
Tours
Public tours of the North Dakota State Capitol resumed on Tuesday, June 1, 2021, after being suspended over a year ago due to the COVID-19 pandemic. The 18th floor has also been reopened to the public. Tours will be conducted Monday through Friday, on the hour from 9 – 11 a.m. and 1 – 3 p.m. Tours will not be conducted on the weekends as the Capitol is closed on Saturdays and Sundays. Entities wishing to request group tours may fill out the tour request form on OMB’s website.
50 New AED’s on Capitol Complex
The North Dakota Office of Management and Budget is pleased to announce the receipt of 50 new Automatic External Defibrillators (AEDs) to be installed in buildings located on the Capitol Complex. The Department of Health was able to provide the AEDs through a grant.
Facility Management will install the new AEDs throughout the summer. Existing Capitol Complex AEDs will be given to the Historical Society to be used at historical sites across the state. This is a great example of four state agencies collaborating to ensure the necessary equipment is available for use in case of emergencies: Department of Health, Highway Patrol, Historical Society and OMB.
Projects
SB 2146 passed this session, allowing OMB to begin working on the Americans with Disabilities Act (ADA) deficiencies throughout the Capitol in June. This will greatly improve the accessibility to those needing assistance within the Capitol. OMB will work very closely with the Legislative and Judicial branches as well as the Capitol Grounds Planning Commission to ensure the $750,000 appropriation addresses all of the identified deficiencies. The ADA work will conclude prior to the next legislative session.
CENTRAL SERVICES
Procurement Legislation
As passed by the 2021 legislature, Senate Bill 2162 will enact changes to North Dakota Century Code Chapter 54-44.4 State Purchasing Practices. The changes are as follows:
- Bidder Communications - OMB must develop guidelines for a person interested in doing business with the state, addressing communications between interested persons and purchasing agencies before, during and after the procurement process. Communications with state officials or any member of the legislative assembly is not restricted unless the state official or member of the legislative assembly is directly involved with the procurement.
- Emergency Purchases – This section was amended and reenacted to require a written justification for noncompetitive emergency purchase. If the emergency purchase is subject to federal reimbursement, the procurement procedure and documentation must be adequate to satisfy requirements for federal reimbursement.
- Payment – A purchasing and vendor may negotiation payment terms. If the contract does not specify a payment term, payment must be made pursuant to NDCC Section 13-01.1-01.
- Standardized Solicitation Documents/Minimize Solicitation Length - OMB shall establish and maintain standardized procedures for submission of electronic bids and proposals through the SPO Online website. OMB, in consultation with the Office of the Attorney General shall develop standardized solicitation documents. OMB and purchasing agencies shall use their best efforts to minimize the length of the solicitation.
OMB State Procurement will be providing more information related to implementation of this legislation. Contact Sherry Neas, OMB Central Services Director, at 701.328.1726 for more information.
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