Sandy Blunt could stand trial as soon as December on allegations related to use of public funds for employee incentives and bonuses.

The former Workforce Safety and Insurance executive director pleaded not guilty to Class B and Class C felony charges of misappropriation of entrusted property on Monday at the Burleigh County Courthouse.

South Central District Judge Bruce Romanick tentatively scheduled jury selection in the case for Dec. 11 and 12, with a trial to follow the following week. Prosecutors and Blunt's defense attorney, Michael Hoffman, have 10 days to give Romanick potential questions for a jury questionnaire.

Blunt was charged April 18, 2007, with the three felonies after a state audit of the agency revealed several questionable practices that were later investigated by Bureau of Criminal Investigations.

One charge of conspiracy to commit disclosure of confidential information was dismissed by prosecutors in October.

The two counts of misapplication of entrusted property, which deal with approximately $18,000 in public funds, were dismissed by South Central District Judge Robert Wefald on Aug. 23, 2007. Prosecutors appealed the ruling to the North Dakota Supreme Court, which overturned the dismissal in a decision issued June 30. The case was sent back to the district court.

The Class B felony charge, punishable by up to 10 years in prison and fines of up to $10,000, relates to the use of more than $10,000 in WSI funds for gift certificates, incentives and pay for travel expenses and lunches for legislators.

The Class C felony charge, punishable by up to five years in prison and fines of up to $5,000, relates to money given to three high-level employees close to Blunt: legal counsel Jodi Bjornson, chief of employer services John Halvorson and communications executive Mark Armstrong. Prosecutors defined the money as more than $7,000 in bonuses, exceeding constitutional limits and not complying with statutory bonus programs, though Blunt called the money retroactive pay to adjust for new salary structures.

The Supreme Court sided with prosecutors in determining that there was probable cause that the lump-sum payments were not legal.

Blunt was dismissed from his position in December 2007 and has been temporarily replaced by former Fargo Mayor Bruce Furness.

Hoffman on Monday requested a jury questionnaire be sent to potential jurors to weed out those people who already have strong opinions on the case, and Burleigh County Assistant State's Attorney Cynthia Feland said such a process would expedite the selection process and excuse people with "clear bias."

Hoffman said requesting a change of venue for the trial would not make sense as the case has received statewide media coverage.

"We'll probably need a larger panel of people," Hoffman said.

Romanick told the attorneys to get him the questions within 10 days "or sooner," and to keep the questions focused and to the point.

(Reach reporter Jenny Michael at 250-8225 or jenny.michael@bismarcktribune.com.)