The Legislative Task Force on Government Efficiency convened on July 30, 2025, to discuss key changes in the budgeting and accounting processes for state agencies in North Dakota. The meeting focused on the implications of a new continuing appropriation system, which aims to streamline operations and enhance responsiveness to agency needs.

The discussion began with an overview of the previous budgeting system, which involved double accounting—where agencies had both appropriated funds and authority appropriated that matched dollar for dollar. This method created complications in accounting and limited agencies' ability to respond to unforeseen projects. The new continuing appropriation allows agencies to utilize appropriated funds for operational needs without the constraints of hiring new staff, thereby simplifying accounting processes.

A significant point raised was the timeline for establishing service rates, which must be set before agencies submit their budget recommendations to the governor. The rates are determined in the even-numbered years, with agencies providing input on their expected workloads and IT plans. The rates established in May 2024 will dictate costs until June 2027, creating challenges in accurately forecasting expenses due to various external factors.

The task force also discussed the need for an alternative rate structure that separates operational costs from service rates. This change aims to prevent significant increases in service costs that do not reflect actual expenses. The team is currently exploring different options to achieve this, with plans to finalize a new rate structure by the second quarter of 2026.

In conclusion, the meeting highlighted the ongoing efforts to improve government efficiency through better financial management and responsiveness to agency needs. The task force will continue to work on refining the rate structure and preparing for the upcoming legislative session, ensuring that the budgeting process aligns with the operational realities of state agencies.