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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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Wheeler-Thomas scores 21 as North Dakota State knocks off Cal State Bakersfield 80-69

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Wheeler-Thomas scores 21 as North Dakota State knocks off Cal State Bakersfield 80-69


BAKERSFIELD, Calif. (AP) — Damari Wheeler-Thomas’ 21 points helped North Dakota State defeat Cal State Bakersfield 80-69 on Thursday.

Wheeler-Thomas had three steals for the Bison (8-3). Markhi Strickland scored 15 points while shooting 6 of 11 from the field and 3 for 6 from the free-throw line and grabbed five rebounds. Andy Stefonowicz went 4 of 7 from the field (3 for 4 from 3-point range) to finish with 13 points.

Ron Jessamy led the way for the Roadrunners (4-7) with 18 points, six rebounds, two steals and four blocks. CJ Hardy added 13 points. Jaden Alexander also recorded eight 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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Scientists discover ancient river-dwelling mosasaur in North Dakota

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Scientists discover ancient river-dwelling mosasaur in North Dakota


Some 66 million years ago, a city bus-sized terrifying predator prowled a prehistoric river in what is now North Dakota. 

This finding is based on the analysis of a single mosasaur tooth conducted by an international team of researchers from the United States, Sweden, and the Netherlands. 

The tooth came from a prognathodontine mosasaur — a reptile reaching up to 11 meters long. This makes it an apex predator on par with the largest killer whales.

It shows that massive mosasaurs successfully adapted to life in rivers right up until their extinction.

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The mosasaur tooth was found in 2022 in the Bismarck Area, North Dakota. Credit: Melanie During 

Isotope analysis

Dating from 98 to 66 million years ago, abundant mosasaur fossils have been uncovered in marine deposits across North America, Europe, and Africa.

However, these marine reptile fossils have been rarely found in North Dakota before. 

In this new study, the large mosasaur tooth was unearthed in a fluvial deposit (river sediment) in North Dakota. 

Its neighbors in the dirt were just as compelling: a tooth from a Tyrannosaurus rex and a crocodylian jawbone. Interestingly, all these fossilized remains came from a similar age, around 66 million years old. 

This unusual gathering — sea monster, land dinosaur, and river croc — raised an intriguing question: If the mosasaur was a sea creature, how did its remains end up in an inland river?

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The answer lay in the chemistry of the tooth enamel. Using advanced isotope analysis at the Vrije Universiteit in Amsterdam, the team compared the chemical composition of the mosasaur tooth with its neighbors.

The key was the ratio of oxygen isotopes. 

The mosasaur teeth contained a higher proportion of the lighter oxygen isotope than is typical for mosasaurs living in saltwater. This specific isotopic signature, along with the strontium isotope ratio, strongly suggests that the mosasaur lived in a freshwater habitat.

Analysis also revealed that the mosasaur did not dive as deep as many of its marine relatives and may have fed on unusual prey, such as drowned dinosaurs. 

The isotope signatures indicated that this mosasaur had inhabited this freshwater riverine environment. When we looked at two additional mosasaur teeth found nearby, slightly older sites in North Dakota, we saw similar freshwater signatures. These analyses show that mosasaurs lived in riverine environments in the final million years before going extinct,” explained Melanie During, the study author.

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Transformation of the Seaway

The adaptation occurred during the final million years of the Cretaceous period.

It is hypothesized that the mosasaurs were adapting to an enormous environmental shift in the Western Interior Seaway, the vast inland sea that once divided North America.

Increased freshwater influx gradually transformed the ancient sea from saltwater to brackish water, and finally to mostly freshwater, similar to the modern Gulf of Bothnia. 

The researchers hypothesize that this change led to the formation of a halocline: a structure where a lighter layer of freshwater rested atop heavier saltwater. The findings of the isotope analyses directly support this theory.

The analyzed mosasaur teeth belong to individuals who successfully adapted to the shifting environments. 

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This transition from marine to freshwater habitats (reverse adaptation) is considered less complex than the opposite shift and is not unique among large predators. 

Modern parallels include river dolphins, which evolved from marine ancestors but now thrive in freshwater, and the estuarine crocodile, which moves freely between freshwater rivers and the open sea for hunting.

Findings were published in the journal BMC Zoology on December 11.



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North Dakota highway rollover crash caught on camera

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North Dakota highway rollover crash caught on camera


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