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CITY, ND – (NewsDakota.com) North Dakota Governor Jack Dalrymple’s announcement that state agencies will have to make a 4.05 percent cut due to a billion shortfall caused by declining oil activity will affect nursing facilities across the state.

Sheyenne Care Center CEO Craig Christianson says Medicaid funding is a large portion of the Department of Human Services budget.

In an interview with reporter Steve Urness, Christianson says the industry can’t afford to make staff reductions being nursing facilities require 24/7 care for their residents.

Despite the gloomy news the Sheyenne Care Center plans to move forward with their $12.5 million renovation construction project.

Christianson says bids for the project will be let again this week. Last year all bids were rejected being they were well above the $12.5 million estimate.

The Sheyenne Care Center in Valley City employs 265 people in Valley City and has 177 residents.