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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Grace M. Kegler, 94, of Grand Forks, ND passed away Monday, December 23, 2024, at Edgewood Vista in East Grand Forks, MN. Memorial Liturgy 1100 a.m. Saturday, December 28, 2024, with a 1030 a.m. Rosary Service in the Historic Norman Funeral Home Chapel. Family Greeting 1000 a.m. to 1100 a.m.
Coming out of a difficult non-conference span of games, this past week was likely a step down in competition for the Alabama Crimson Tide basketball team.
Beginning on Wednesday night, the Crimson Tide did what most programs do not often do, traveling across the country mid-week for a true road game against the North Dakota Fighting Hawks. Alabama would however win that contest in a closer game than most expected, 97-90, and then returned home Sunday for a showdown with the Kent State Golden Flashes in which they were victorious, 81-54.
Because of these results, Alabama now sits at 10-2 overall for the 2024-25 season with the Crimson Tide’s non-conference schedule winding down, and the start of SEC play looming in early-January.
However, just how much did these results affect Alabama’s AP Poll Top 25 ranking, if at all?
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After carrying a ranking of No. 6 last week, Alabama rose one spot up to No. 5 in the latest AP Poll released Monday afternoon. The Crimson Tide were also the third highest-ranked SEC team, trailing only No. 1 Tennessee and No. 2 Auburn.
Riding a four-game winning streak, the Crimson Tide will officially be back in action this upcoming Sunday, Dec. 29 at home against South Dakota State, with tipoff set for 3 p.m. ET on either SEC Network+ or ESPN+.
It has been a year of adjusting for North Dakota State Junior Guard Brennan Watkins, who has found a new home in Fargo after two seasons at VMI.
“It’s different in the stand point that I get to just focus on basketball more. At VMI there was military, a lot of academics and then basketball was kind of an after thought. Obviously there is time for academics but I have more time to be in the gym and get more shots up,” said Watkins looking back at his time out east.
As the Missouri native navigates his first season with the green and gold, Watkins also has to adjust to some new headgear after a gruesome injury in the game against Weber State earlier this season.
“I didn’t even know where I got hit. I just knew there was pain radiating around my face. My reaction was to just put my hands to my face. I kind of took my hands away and my hands were just completely filled with blood and I was like oh no that’s not good” he said.
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Watkins suffered a compound fracture breaking his nose in two places.
“When I was at the game the team doctor readjusted it partially there and they said it was too swollen to completely adjust it. I think once I go back to the doctor they are going to adjust it a second time too. There is not pain but it is difficult to breathe. I’m not really getting as much airflow through my nose as I am used to” said Watkins describing his challenges with the broken nose.
Despite the injury, Watkins hasn’t missed a game or a beat becoming the “Masked Man” for the Bison.
“It’s completely different. I can’t really see out of my peripherals. Once I start to sweat the clear mask starts to fog up so that creates another problem. It’s truly difficult. I don’t think people understand how much of a difference it makes,” he said.
“Brennan has always been a really talented basketball player. Gifted offensive player and we have challenged him on the little things, the winning plays and he is starting to understand those and execute those things and that’s the next step for him,” said NDSU Head Coach, Dave Richman.
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A warrior, Watkins is determined to stay on the floor and make those winning plays for North Dakota State.
“Just do anything for my team and help them win that is just kind of the player I am. It doesn’t matter if I have a broken nose. If I am able to play I’m going to be out there,” said Watkins.
The Bison Men’s Basketball Team has one more non-conference match up against CSU-Bakersfield on Monday night before conference play begins on January, 2nd.
Sam Goetzinger joined WDAY News as a reporter and anchor in 2022 after graduating from St. Cloud State University. Sam worked alongside his Dad in the radio industry for 10 years in his hometown of New Prague, Minnesota before heading off to college. Along with his news responsibilities, Sam also handles play-by-play duties for North Dakota and Minnesota high school athletics.
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