Dakota Beacon

GOVERNOR’S MESSAGE  ND is ready to go.  Gov. Doug Burgum said “I have an enormous sense of optimism . . . and we are poised for the economy to grow.”  The state will end the biennium which ends in June with a record surplus.  ND also has untouched federal stimulus money of $1 billion. “We had a flock of black swans land on our state last year,” Burgum said, but thanks to improving oil prices and the efforts of state employees “North Dakota may be in better shape economically than other states.”

HE’S FOR IT, BUT!  ”These things are so popular in terms of what they draw.  Is it going to be hard? Yes. Is it assured? No. Is it worth trying to figure out how to make it happen? I think yes, it is.” — Gov. Burgum expressed his support for preserving the Bismarck-Mandan Rail Bridge for pedestrians and as a visitor draw, but the support was carefully qualified.  He also mentioned engineering problems and liability issues.  BNSF asked the Coast Guard to remove the old bridge citing multiple problems with lack of progress by Friends of the Rail Bridge.

THE U.S. DROUGHT MONITOR now places 85% of ND in extreme drought. Only the very southeast part of ND is outside the drought conditions with an abnormally dry rating. The Drought Monitor has shown a steady expansion of extreme drought across ND from west to east since last fall.  A livestock specialist at the Carrington Extension Research Center said livestock farmers may have two choices, “sell cattle or buy feed.”  Not an appealing choice said Karl Hoppe, since “Feed prices have doubled and cow prices are down.”

MARK’S IN THE MARKET AGAIN  Former UND President Mark Kennedy is cutting his ties with the U. of Colorado.  A buyout of the final year of his contract is worth $1.3 million — a university spokesman said the separation was “neither a resignation nor a termination.”  There are two principal schools of thought:  The first, the faculty censured him for “a well-documented history of making problematic and hurtful statements without apologies or consequences.”  The second view was voiced by a supportive regent who said Kennedy was “fired for the high crime of not being a Democrat or left-wing academic.”  Kennedy is a former Republican congressman and the Board of Regents in Colorado recently changed from a Republican to a Democrat majority.

FINAL DRUMBEAT  Lutheran Social Services was ND’s largest private social services provider.  The 102-year-old organization was brought to its knees by an ill-conceived investment in low-income housing.  The last step is a Chapter 11 bankruptcy filing which will determine the process for settling with unsecured creditors.  LSS Housing, the cause of the woes, is being liquidated by a receiver, Lighthouse Management.  LSS invested $16 million and borrowed an additional $45 million for the housing business.  ND banks have initiated numerous lawsuits and foreclosures related to the real estate — LSS Housing owned 20 projects and managed another 14 facilities.  As is often the case in failures of nonprofit organizations, board members and prior management appear to be walking away from their mess. 

AN ABSURDITY IS ENDING  A federal bankruptcy judge called it an “interminable absurdity.”  That is the process by which Susan Bala and her wholly-owned Fargo company, Racing Services Inc. (RSI), have been hauled through the courts for nearly two decades.  In 2005, Bala was convicted for illegal gambling and sent to prison — she was released early when her conviction was overturned.  The state of ND made a $15.8 million refund to RSI in 2014 of which about $6 million has since been eaten by legal fees and creditors.  

THE BALA SAGA may soon be ended by closing the bankruptcy estate and releasing the remaining $9.7 million to her.  But don't be sure, ND's attorney general is taking one more shot by appealing the decision of the bankruptcy court.

HOSPITAL DEAL FIZZLES  CommonSpirit Health, the nation’s largest Catholic health system, had a tentative agreement to sell two dozen CHI-branded properties in ND and Minnesota to Essentia Health in Duluth.  The deal included St. Alexius in Bismarck as well as facilities in Carrington, Devils Lake, Dickinson, Garrison, Turtle Lake and Williston.  Opposition by nurses who feared a reduction in patient care was one of the factors which caused the parties to end negotiations.

A SMALL LESSON about diesel fuels made from vegetable oils: Biodiesel is blended with petroleum diesel, but tends to gum up in cold weather.  Renewable diesel is made by a different process, flows well in the cold and can be used alone in diesel engines.  The Marathon Dickinson Refinery has been converted from petroleum and produces 12,000 barrels of biofuel a day from soybean and corn oil.

DICKEY COUNTY so far has had 33 deaths as a result of the pandemic and has the highest related death rate in ND.  The county has less than 5,000 residents.  The deaths definitely made an impression — Dickey County turned around and now has the highest vaccination rate (63%) in the state.

HOW ABOUT THAT NICKNAME?  Are Nodaks inspired by their state’s nickname, “The Peace Garden State?”  Do you think the name is well recognized outside the state?  I earlier suggested a name such as “The Rough Rider State” to exemplify the ruggedness of its people and the state’s connection to Theodore Roosevelt.  But there is a far better nickname — “The Bison State.”  It’s a name already popular in the state, it’s historically appropriate and is used by a major university in the state.  The name would be recognized by and make sense to people outside the state.  The nickname would be a good fit and have some zing like Wyoming’s Cowboy.

DAKTOIDS:  March oil production in ND was 1.1 million barrels a day, a 2% increase over February.  Mineral Resources Director Lynn Helms called the increase “a  nice gentle recovery.”