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Study recommends shifting state dollars away from Bank of North Dakota

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Study recommends shifting state dollars away from Bank of North Dakota


BISMARCK — A cash management study presented to lawmakers on Tuesday, Sept. 17, recommends shifting state money away from the Bank of North Dakota to increase returns for state government.

The state keeps most of its operating funding at the Bank of North Dakota, the nation’s only state-owned bank. A consultant’s report found that this relationship could be harming both parties, but it was met with criticism during a meeting of the Legislature’s Government Finance Committee.

The report, prepared by consulting firm RVK Inc., likened the state to a “captive client” to the bank and reasoned that state agencies are subsidizing the bank’s income by accepting lower returns on their assets.

At the same time, this relationship also puts pressure on the Bank of North “to return dividends to the general fund,” said RVK senior consultant Josh Kevan.

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The consulting firm proposed removing the state’s funds from the Bank of North Dakota and having state agencies take over some of the cash management duties currently performed by the bank.

“That is in no way a recommendation to seize the operations of Bank of North Dakota,” Kevan said. “We assume that that continues to be a valuable part of your state’s infrastructure, but we do recommend exploring other ways to finance the bank’s balance sheet.”

The firm estimated that implementing its recommendations would bring the state an additional $9.5 billion over the next two decades.

The report’s findings drew skepticism and ire from legislators and some members of the banking community, who fear moving the money could hurt the Bank of North Dakota and other financial institutions in the state.

Many questioned how the state would replace the funding if North Dakota were to move forward with the firm’s recommendations.

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Kevan said that this was beyond the scope of the report.

Susan Sisk, director of the Office of Management and Budget, said the study’s steering committee recommends that lawmakers authorize an additional study that would research options for how the state could replace the Bank of North Dakota’s capital if the state’s operating funds were moved elsewhere.

Sisk told lawmakers that the steering estimates such a study would cost between $300,000 and $400,000.

The study presented on Tuesday cost $395,000, not including travel costs, according to the Office of Management and Budget.

Bank of North Dakota CEO Don Morgan, who has led the bank for roughly a month, said he doesn’t yet have a position on the recommendations.

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Don Morgan, CEO of the Bank of North Dakota, speaks following a presentation on a study that recommended the state remove its operating funds from the bank. Morgan told lawmakers during the Tuesday, Sept. 17, 2024, Government Finance Committee meeting he did not yet have a position on the study’s findings.

Mary Steurer / North Dakota Monitor

“This could be a really sound business idea,” he told the committee. “It really could, or it could not. At this point in time, for me, a key point is just not enough information.”

Alexis Baxley, president of the Independent Community Banks of North Dakota, said the association opposed the recommendations because members viewed them as an affront to the Bank of North Dakota’s mission.

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“I think that removing the funding from the Bank of North Dakota would have a devastating impact on all of the rural communities,” said Sarah Getzlaff, CEO of Security First Bank of North Dakota.

Several people remarked during the meeting that they hadn’t had time to digest the report, since it was only made public a day ahead of the committee meeting.

Implementing the changes would require significant changes to state law, Kevan acknowledged.

Gov. Doug Burgum has advocated for a cash management study, highlighting that North Dakota could be earning higher returns for its rainy-day funds. The North Dakota Industrial Commission, led by the governor, oversees the Bank of North Dakota.

This story was originally published on NorthDakotaMonitor.com

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Tony Osburn’s 27 helps Omaha knock off North Dakota 90-79

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Tony Osburn’s 27 helps Omaha knock off North Dakota 90-79


OMAHA, Neb. (AP) — Tony Osburn scored 27 points as Omaha beat North Dakota 90-79 on Thursday.

Osburn shot 8 of 12 from the field, including 5 for 8 from 3-point range, and went 6 for 9 from the line for the Mavericks (8-10, 1-2 Summit League). Paul Djobet scored 18 points and added 12 rebounds. Ja’Sean Glover finished with 10 points.

The Fightin’ Hawks (8-11, 2-1) were led by Eli King, who posted 21 points and two steals. Greyson Uelmen added 19 points for North Dakota. Garrett Anderson had 15 points and two steals.

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The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.



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Port: 2 of North Dakota’s most notorious MAGA lawmakers draw primary challengers

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Port: 2 of North Dakota’s most notorious MAGA lawmakers draw primary challengers


MINOT — Minot’s District 3 is home to Reps. Jeff Hoverson and Lori VanWinkle, two of the most controversial members of the Legislature, but maybe not for much longer.

District 3, like all odd-numbered districts in our state, is on the ballot this election cycle, and the House incumbents there

have just drawn two serious challengers.

Tim Mihalick and Blaine DesLauriers, each with a background in banking, have announced campaigns for those House seats. Mihalick is a senior vice president at First Western Bank & Trust and serves on the State Board of Higher Education. DesLauriers is vice chair of the board and senior executive vice president at First International Bank & Trust.

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The entry into this race has delighted a lot of traditionally conservative Republicans in North Dakota

Hoverson, who has worked as a Lutheran pastor, has frequently made headlines with his bizarre antics. He was

banned from the Minot International Airport

after he accused a security agent of trying to touch his genitals. He also

objected

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to a Hindu religious leader participating in the Legislature’s schedule of multi-denominational invocation leaders and, on his local radio show, seemed to suggest that Muslim cultures that force women to wear burkas

have it right.

Hoeverson has also backed legislation to mandate prayer and the display of the Ten Commandments in schools, and to encourage the end of Supreme Court precedent prohibiting bans on same sex marriage.

Rep. Jeff Hoverson, R-Minot, speaks on a bill Friday, Jan. 10, 2025, at the North Dakota Capitol.

Tom Stromme / The Bismarck Tribune

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VanWinkle, for her part, went on a rant last year in which she suggested that women struggling with infertility have been cursed by God

(she later claimed her comments, which were documented in a floor speech, were taken out of context)

before taking

a weeklong ski vacation

during the busiest portion of the legislative session (she continued to collect her daily legislative pay while absent). When asked by a constituent why she doesn’t attend regular public forums in Minot during the legislative session,

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she said she wasn’t willing to “sacrifice” any more of her personal time.

The incumbents haven’t officially announced their reelection bids, but it’s my practice to treat all incumbents as though they’re running again until we learn otherwise.

In many ways, VanWinkle and Hoverson are emblematic of the ascendant populist, MAGA-aligned faction of the North Dakota Republican Party. They are on the extreme fringe of conservative politics, and openly detest their traditionally conservative leaders. Now they’ve got challengers who are respected members of Minot’s business community, and will no doubt run well-organized and well-funded campaigns.

If the 2026 election is a turning point in the

internecine conflict among North Dakota Republicans

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— the battle to see if our state will be governed by traditional conservatives or culture war populists — this primary race in District 3 could well be the hinge on which it turns.

In the 2024 cycle, there was an effort, largely organized by then-Rep. Brandon Prichard, to push far-right challengers against more moderate incumbent Republicans.

It was largely unsuccessful.

Most of the candidates Prichard backed lost, including Prichard himself, who was

defeated in the June primary

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by current Rep. Mike Berg, a candidate with a political profile not all that unlike that of Mihalick and DesLauriers.

But these struggles among Republicans are hardly unique to North Dakota, and the populist MAGA faction has done better elsewhere. In South Dakota, for instance, in the 2024 primary,

more than a dozen incumbent Republicans were swept out of office.

Can North Dakota’s normie Republicans avoid that fate? They’ll get another test in 2026, but recruiting strong challengers like Mihalick and DesLauriers is a good sign for them.

Rob Port
Rob Port is a news reporter, columnist, and podcast host for the Forum News Service with an extensive background in investigations and public records. He covers politics and government in North Dakota and the upper Midwest. Reach him at rport@forumcomm.com. Click here to subscribe to his Plain Talk podcast.
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Today in History, 1993: North Dakota-born astronaut leaves Fargo school kids starstruck

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Today in History, 1993: North Dakota-born astronaut leaves Fargo school kids starstruck


On this day in 1993, Jamestown native and astronaut Rick Hieb visited Fargo’s Roosevelt Elementary School, captivating students with stories of his record-breaking spacewalks and the daily realities of life in orbit.

Here is the complete story as it appeared in the paper that day:

Students have blast with astronaut

By Tom Pantera, STAFF WRITER

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Like some astronauts, Rick Hieb downplays the importance of the profession. “We have an astronaut office; there’s a hundred of us in there,” he said. “My office-mates are astronauts. My neighbor one street over is the commander of my last flight. The next street over is the commander of the previous flight. We’re kind of a dime a dozen around where we all live” in Houston, he said.

“We sort of realize that if we make a mistake, it’s going to be of historic proportions,” he said. “But you don’t really think of yourself as being some kind of historic figure.”

But the 37-year-old Jamestown, N.D., native said his importance as a role model comes home when he speaks to children, as he did Thursday at Fargo’s Roosevelt Elementary School.

See more history at Newspapers.com

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He kept the kids spellbound with a description of the May 1992 space shuttle mission in which he was one of three astronauts who walked in space to recover an errant satellite — the largest and longest space walk in history. He illustrated his talk with slides and film of the mission, including the capture of the satellite.

But he drew perhaps his biggest reactions when he explained how astronauts handle going to the bathroom during long spacewalks — adult-size diapers — and the peculiar cleanup problems that come with getting nauseous in a weightless environment.

Hieb already has started training for his next mission, when he will be payload commander aboard the shuttle Columbia in July 1994, although he noted the schedule “might slip a little bit.”

It will be an international spacelab mission, meaning a pressurized laboratory containing 80 different experiments will be housed in the shuttle’s payload bay.

“Every one of those scientists wants to teach us their science we’ll be doing on that flight,” he said.

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About 40 percent of the experiments will be done for Japanese scientists, about 50 percent will be for Europeans, 5 percent for Canadians and the rest for Americans. The flight will last 13 days, and the shuttle will carry enough astronauts for two work shifts.

Hieb and others in the crew spent much of December in Europe for training and will be going to Europe and Japan for more training until about June.

He said he could have put in for a flight that featured another spacewalk, but he wanted to be a payload commander of a spacelab instead.

A 1973 graduate of Jamestown High School, Hieb earned degrees in math and physics from Northwest Nazarene College in Nampa, Idaho, in 1977 and a master’s degree in aerospace engineering from the University of Colorado in 1979. He joined NASA right out of graduate school, becoming an astronaut in 1986.

His first mission was in spring 1991 as a crew member of the shuttle Discovery.

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Hieb would not say Thursday if the 1994 mission would be his last.

“I’m not promising anybody anything beyond this,” he said. “A spacelab flight is not nearly as sexy as putting on a spacesuit and going outside and grabbing onto satellites and stuff like that. But for me, it’ll kind of fill out the checklist of all the kinds of things that mission specialists can do. I’ll have kind of done everything that we do. I’m not for sure going to quit, but I’m not for sure going to stay either.”

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Kate Almquist

Kate Almquist is the social media manager for InForum. After working as an intern, she joined The Forum full time starting in January 2022. Readers can reach her at kalmquist@forumcomm.com.





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