North Dakota Legislative Higher Education Committee

NORTH DAKOTA LEGISLATIVE MANAGEMENT
Minutes of the
HIGHER EDUCATION COMMITTEE
Wednesday, September 23, 2009
Roughrider Room, State Capitol
Bismarck, North Dakota
Representative Bob Skarphol, Chairman, called
the meeting to order at 9:00 a.m.
Members present: Representatives Bob
Skarphol, Lois Delmore, Mark A. Dosch, Brenda
Heller, Nancy Johnson, RaeAnn G. Kelsch, Joe
Kroeber, Darrell D. Nottestad, Kenton Onstad, Clark
Williams; Senators John M. Andrist, Tim Flakoll,
Tony S. Grindberg, Dave Nething, Larry J. Robinson
Members absent: Representatives Kathy
Hawken, Dennis Johnson, Bob Martinson, Ken
Svedjan; Senators Ray Holmberg, Karen K.
Krebsbach, Elroy N. Lindaas, David O'Connell, Tom
Seymour
Others present: Jim W. Smith, Director,
Legislative Council
Representatives Merle Boucher and Gary Kreidt,
members of the Legislative Management, were also in
attendance.
See attached appendix for additional persons
present.
It was moved by Senator Robinson, seconded
by Representative Nottestad, and carried on a
voice vote that the minutes of the August 20, 2009,
meeting be approved as distributed.
Chairman Skarphol said the committee is
tentatively scheduled to meet on October 28, 2009,
and December 2, 2009. He said the State Board of
Higher Education will be invited to the October 28,
2009, meeting to discuss higher education policy
issues.
HIGHER EDUCATION STUDY
Chairman Skarphol called on Mr. Bob Wetsch,
Mandan, to provide testimony to the committee
regarding higher education. Mr. Wetsch expressed
concern with the duplication of programs in higher
education as well as the increasing budgets of
institutions. He suggested the committee develop a
policy for the approval of new programs at institutions.
A copy of the testimony presented by Mr. Wetsch is
on file in the Legislative Council office.
The Legislative Council staff presented a
memorandum entitled Summary of 1999-2000 Interim
Higher Education Roundtable Recommendations.
The Legislative Council staff said the 1999-2000
Higher Education Roundtable utilized six task forces
to develop over 90 recommendations in the areas of
economic development connection, education
excellence, flexible and responsive system,
accessible system, funding and rewards, and
sustaining the vision.
Dr. Marsha Krotseng, Vice Chancellor for Strategic
Planning, North Dakota University System, presented
information regarding the implementation status of the
1999-2000 Higher Education Roundtable
recommendations. She presented the following
schedule detailing recommendations that were
assigned to the State Board of Higher Education for
implementation and further review:
Roundtable Recommendation Status/Outcomes
1. Take the leadership in ensuring key steps required for
implementation of the roundtable are taken, specifically to
develop and recommend (to the executive and legislative
branches):
• A long-term plan for the financing of the University
System.
• A resource allocation mechanism.
• Accountability mechanisms--both performance and
fiscal.
The 2008 Accountability Measures Report was created and is
shared annually with legislators and other stakeholders.
The long-term finance plan was developed and implemented
in 2001 and revised in 2006 by the State Board of Higher
Education.
2. Change policies and procedures to empower campus
presidents and grant to the campuses the same
conditions being sought for the University System--
flexibility with accountability.
State Board of Higher Education Policy 305.1 states "The
Board delegates to the president of each institution full
authority and responsibility to administer the affairs of the
institution in accordance with Board policies, plans, budgets,
and standards . . . within budgetary and other limitations
imposed by law or by the Board."
Institution presidents are evaluated annually.
Campus alignment plans and process reports are produced
annually.
Higher Education 2 September 23, 2009
Roundtable Recommendation Status/Outcomes
3. Develop a University System which has intellectual
capacity and programs aligned with the needs of the state.
The 2008 Accountability Measures Report states that:
• Approximately 72 percent of the 2004-05 graduates who
remained in North Dakota in 2006 were employed in
occupations related to their education or training.
• In fiscal year 2008, TrainND served 1,345 businesses and
11,990 employees.
• Research expenditures grew by 19 percent from fiscal
year 2004 ($152.1 million) through fiscal year 2008
($180.5 million).
4. Develop a delivery system capable of making the
capacities of the University System accessible to all of
North Dakota using:
• Learning centers.
• Distance delivery.
• Collaborative delivery.
• Duplicated programs where appropriate.
The 2008 Accountability Measures Report states that in the
fall of 2008, 15,983 students were enrolled in credit courses
through nontraditional delivery methods. Enrollment in
nontraditional delivery methods has increased 88 percent
since the fall of 2004.
5. Collaborate with other participants in collectively moving
the agenda forward.
The roundtable process has convened on nine occasions
since 1999 (most recently in October 2008).
The Department of Public Instruction, Department of Career
and Technical Education, Education Standards and Practices
Board, and State Board of Higher Education meet at least
once annually.
The University System collaborates with the Department of
Commerce and Job Service North Dakota on workforce
issues.
A copy of the information presented by
Dr. Krotseng is on file in the Legislative Council office.
In response to a question from Representative
Skarphol, Dr. Krotseng said the University System is
working to develop a higher education data
warehouse to track students through college and after
graduation. She said the data warehouse will aid in
measuring student progress for use in reviewing the
higher education accountability measures.
In response to a question from Senator Andrist,
Dr. Krotseng said concerns with higher education are
discussed in Higher Education Roundtable task
forces. She said it is important to have open
communication between the Higher Education
Roundtable stakeholders.
In response to a question from Representative
Skarphol, Dr. Krotseng said the University System
recently developed a new strategic plan for higher
education. She said the outcomes from previous
Higher Education Roundtables were used in
developing the plan.
In response to a question from Representative
Skarphol, Dr. Krotseng said it is important to provide
access to educational programs while avoiding
unnecessary duplication. She said the 1999-2000
Higher Education Roundtable recommended allowing
program duplication where appropriate.
In response to a question from Representative
Delmore, Dr. Krotseng said the higher education
accountability measures use a wide range of
measures, including the education attainment of
citizens and the number of students entering college
from high school.
In response to a question from Senator Grindberg,
Dr. Krotseng said a goal of the University System is to
increase the population of the state through
expanding the economy. She said the University
System is also working to increase the education
attainment of North Dakota citizens.
In response to a question from Representative
Nottestad, Dr. Krotseng said the University System
considers the changing demographics of the state
when developing its strategic plans.
In response to a question from Senator Flakoll,
Dr. Krotseng said students that transfer between
University System institutions are considered as
noncompleters when evaluating student success at an
institution.
In response to a question from Representative
Skarphol, Dr. Krotseng said it is important to use
consistent accountability measures to obtain a
historical perspective when evaluating the measures.
Dr. Michel G. Hillman, Vice Chancellor for
Academic and Student Affairs, North Dakota
University System, said the 2008 Accountability
Measures Report includes measures adopted by the
State Board of Higher Education in addition to the
measures adopted by the Legislative Assembly.
In response to a question from Senator Nething,
Dr. Hillman said new accountability measures adopted
by the 2009 Legislative Assembly will be included in
the fall 2010 Accountability Measures Report.
In response to a question from Senator Robinson,
Dr. Hillman said it is important for higher education
accountability measures to provide the information
needed by legislators and other higher education
stakeholders in the state. He said other states may
use accountability measure information for other
purposes, including incentive funding.
Higher Education 3 September 23, 2009
In response to a question from Senator Andrist,
Dr. Hillman said the enrollment of nonresident
students is increasing at institutions. He said the
number of resident students enrolling in programs with
nontraditional delivery methods is also increasing.
In response to a question from Representative
Delmore, Dr. Hillman said he would provide the
committee with information regarding the enrollment
of adult learners, disadvantaged students, and
nonresident students. He said he would also provide
information regarding potential ways to increase the
enrollments of nontraditional and disadvantaged
students.
In response to a question from Representative
Skarphol, Dr. Hillman said nonresident graduates of
the University System are used to meet a portion of
the workforce demands of the state. He said the
North Dakota/Minnesota tuition reciprocity agreement
attracts Minnesota students to North Dakota schools.
In response to a question from Representative
Skarphol, Dr. Krotseng said institutions pursue
funding sources other than state appropriations and
tuition and fees. She said many institutions receive
federal grants.
Mr. William G. Goetz, Chancellor, North Dakota
University System, said private sector partnerships
are a new source of funding for programs, including
infrastructure support. He said private sector
partnerships also result in more opportunities for
students through internships.
In response to a question from Representative
Boucher, Mr. Goetz said the research activity of
institutions enhances the economy in the state and
has a positive effect on tax revenues.
In response to a question from Representative
Skarphol, Dr. Krotseng said funding provided by the
2009 Legislative Assembly for a two-year program
awareness initiative will help address certain
workforce needs of the state. She said the TrainND
program also assists in meeting the workforce needs
of the state.
In response to a question from Senator Nething,
Dr. Krotseng said it is important that effective
communications occur among secondary education,
higher education, and career and technical education.
Representative Skarphol suggested committee
members attend meetings of the State Board of
Higher Education and the State Board of Public
School Education. He said it is important for
legislators to be aware of education-related
discussions of education boards.
In response to a question from Senator Grindberg,
Dr. Hillman said approximately one-half of all
University System students taking classes online are
also taking classes on campus.
In response to a question from Senator Flakoll,
Dr. Hillman said the University System does not set a
goal for the number of classes to be offered online.
He said the goal of the University System is to meet
the needs of the students.
Dr. Hillman said the University System works to
timely address the workforce needs of the state. He
said the length of time to respond to a workforce need
is dependent on the time required for approval of a
new program. He said funding is also a concern with
new programs because campuses may need to
reallocate funding internally to provide the necessary
funding for a new program to address workforce
needs.
In response to a question from Representative
Kelsch, Dr. Hillman said most online students who are
also on-campus students take both the online and oncampus
classes from the same institution.
Senator Grindberg said it is important for
campuses to generate revenue through online
classes. However, he said, the state needs to
consider the cost of an online program that educates
a majority of students living outside the state.
In response to a question from Representative
Skarphol, Dr. Krotseng said the private sector and
University System exchange ideas through the Higher
Education Roundtable.
Chairman Skarphol asked Dr. Krotseng to provide
committee members a copy of the University System
strategic plan prior to the next committee meeting.
Dr. Hillman presented information to the committee
regarding a report prepared by the Delta Cost Project
regarding higher education productivity. He said the
report indicates that North Dakota is excelling in the
areas of technology and career advising. He said the
state is also ranked high in the measure of higher
education productivity. A copy of the information
presented by Dr. Hillman is on file in the Legislative
Council office.
In response to a question from Senator Robinson,
Dr. Hillman said joint meetings between the State
Board of Higher Education, State Board of Public
School Education, State Board for Career and
Technical Education, and Education Standards and
Practices Board are used to align elementary,
secondary, and postsecondary education.
In response to a question from Representative
Kelsch, Dr. Hillman said limited resources prevent the
use of professional career counselors on campuses.
In response to a question from Representative
Nottestad, Dr. Hillman said the University System is
developing education attainment expectations for high
school students who are entering college to reduce
the amount of remedial education needed.
In response to a question from Representative
Kelsch, Dr. Hillman said institution education
programs are teaching state education standards to
students pursuing education careers.
In response to a question from Representative
Delmore, Dr. Hillman said adequate funding is a key
element to the success of higher education.
Representative Skarphol said increased funding
for higher education does not necessarily increase
higher education productivity.
Representative Dosch expressed concern
regarding fault being placed on high schools when
Higher Education 4 September 23, 2009
students need remedial education when entering
college. He said better preparation of teachers may
reduce the number of high school students who need
remedial education when entering college.
Dr. Hillman said a program involving high school
teachers and college professors setting expectations
for students who plan to enter college may be helpful.
Representative Kelsch expressed concern that
requiring a number of standardized tests results in
less instructional time for students.
In response to a question from Senator Nething,
Dr. Hillman said information is published annually
regarding the number of nonresident students that
remain in North Dakota following graduation.
Representative Delmore said elementary and
secondary education officials have developed
completion standards for students. She expressed
concern regarding the lack of admission standards at
higher education institutions.
Senator Flakoll suggested the committee receive
information regarding the number of nonresident
students that graduate from a North Dakota institution
and move to areas that border North Dakota.
The committee recessed for lunch at 12:00 noon
and reconvened at 12:45 p.m.
Ms. Laura Glatt, Vice Chancellor for Administrative
Affairs, North Dakota University System, presented
information regarding a study of tuition waivers
conducted by the University System. She said state
statute dictates that waivers be provided for qualified
members of the National Guard; for dependents of
resident veterans who were killed in action, died of
service-related causes, were prisoners of war, or were
declared missing in action; and for survivors of
firefighters, emergency medical services personnel, or
peace officers who died as a direct result of injuries
received in the performance of official duties. She
said State Board of Higher Education policy provides
waivers for the student member of the State Board of
Higher Education and for benefited University System
employees.
Ms. Glatt presented the following schedule
detailing the number of tuition waivers granted at each
institution as a portion of gross tuition revenue for the
2007-08 academic year:
Institution
2007-08
Tuition Waivers
2007-08 Gross
Tuition Revenue
Waivers as a
Percentage of Revenues
Bismarck State College $126,109 $11,523,500 1.1%
Lake Region State College 226,706 3,763,367 6.0%
Williston State College 99,251 1,642,941 6.0%
University of North Dakota 7,133,400 74,904,970 9.5%
North Dakota State University 11,179,622 62,666,769 17.8%
State College of Science 607,818 6,594,989 9.2%
Dickinson State University 2,889,152 11,274,889 25.6%
Mayville State University 149,204 2,752,193 5.4%
Minot State University 1,275,051 14,330,395 8.9%
Valley City State University 411,554 3,893,587 10.6%
Dakota College at Bottineau 49,147 1,656,172 3.0%
Total $24,147,014 $195,003,772 12.4%
A copy of the information presented by Ms. Glatt is
on file in the Legislative Council office.
In response to a question from Representative
Williams, Ms. Glatt said the increase in value of tuition
waivers between academic years is due in part to
tuition increases.
Representative Delmore suggested the committee
receive information regarding the number of foreign
students enrolled at institutions, including the number
of those students that receive a tuition waiver.
Senator Nething suggested the committee receive
information on the number of students that receive
graduate assistant waivers and foreign student
waivers, including the number of those students that
reside in the state following graduation.
In response to a question from Representative
Dosch, Ms. Glatt said students may receive a full or
partial tuition waiver. She said even though a student
receives a tuition waiver, the student may pay for
auxiliary costs such as room and board.
Mr. Goetz said tuition waivers are important to
students who are graduate assistants. He said tuition
waivers can be viewed in the following ways:
• Tuition waivers can be used to attract more
students. These additional students help pay
for auxiliary costs of an institution.
• Tuition waivers are used to improve academic
programs and student life by increasing
diversity.
• Tuition waivers can improve economic
development by increasing the workforce
through students who remain in state after
graduation.
In response to a question from Senator Robinson,
Ms. Glatt said some institutions offer resident tuition
rates to certain nonresident students. She said those
institutions reflect reduced tuition revenue instead of
increased tuition waivers.
In response to a question from Senator Andrist,
Mr. Goetz said some institutions provide more foreign
student waivers due to the institution having a strong
international student focus.
In response to a question from Representative
Boucher, Mr. Goetz said the use of tuition waivers
affects the enrollment of institutions. He said he
would provide more information at a future meeting
Higher Education 5 September 23, 2009
regarding the economic impact of students to
communities.
In response to a question from Senator Robinson,
Mr. Goetz said foreign students can lead to business
partnerships with other countries.
Ms. Glatt presented information regarding the
continuation of unexpended appropriations from the
2007-09 to 2009-11 biennium. She said campuses
had unexpended general fund and permanent oil tax
trust fund appropriations of $12,439,751 at the end of
the 2007-09 biennium which were continued into the
2009-11 biennium. She said most of the unexpended
funds relate to major capital projects and deferred
maintenance.
Ms. Glatt said the University System office had
unexpended appropriations of $1,680,781 at the end
of the 2007-09 biennium which were continued into
the 2009-11 biennium. She said of the total
unexpended appropriations, $1,564,207 was from the
general fund and $116,574 was from special funds. A
copy of the information presented by Ms. Glatt is on
file in the Legislative Council office.
Ms. Glatt presented information regarding previous
and current higher education financing plans. She
said the current higher education financing plan is
based on funding institutions at the same levels as
peer institutions. She said the current plan has
components for base funding, capital assets funding,
and incentive funding.
Ms. Glatt said the previous higher education
funding method was used from 1970 to 2001 and
provided funding through the use of five separate
formulas. She said funding was allocated to
institutions based on an instructional formula,
instructional support formula, support services
formula, equipment formula, and physical plant
formula. A copy of the information presented by
Ms. Glatt is on file in the Legislative Council office.
In response to a question from Representative
Williams, Mr. Goetz said the State Board of Higher
Education has appointed a task force to review the
current higher education funding plan. He said a
revised funding plan needs to address the high cost of
certain programs, affordability, collaboration, and cost
efficiencies.
Representative Skarphol said the development of
a new higher education funding plan should be a joint
effort between the Legislative Assembly and State
Board of Higher Education.
Ms. Glatt presented information regarding tuition
reciprocity agreements. She said the North
Dakota/Minnesota reciprocity agreement generally
requires students to pay the higher of the two states'
tuition rate.
Ms. Glatt said tuition reciprocity agreements are in
place for professional programs not offered in North
Dakota, including veterinary medicine, dentistry, and
optometry. She said the tuition reciprocity
agreements allow students to attend an out-of-state
institution offering a professional program and pay a
reduced tuition rate. She said tuition reciprocity
agreements also exist through the Western Interstate
Commission on Higher Education (WICHE) and
Midwest Higher Education Compact.
Ms. Glatt presented the following information
regarding campuses offering unique tuition rates:
Lake Region
State College
All nonresident students, except
international students, receive the
resident tuition rate.
Williston State
College
All nonresident students receive the
resident tuition rate.
Minot State
University
All nonresident students receive the
resident tuition rate.
State College of
Science
Nonresident students who reside in a
residence hall and purchase a meal plan
receive the resident tuition rate.
Dakota College
at Bottineau
Nonresident students from the Canadian
provinces of Manitoba and
Saskatchewan receive the resident
tuition rate.
A copy of the information presented by Ms. Glatt is
on file in the Legislative Council office.
In response to a question from Representative
Nottestad, Ms. Glatt said the University of North
Dakota School of Medicine and Health Sciences
accepts students through the WICHE student
exchange program.
Dr. Hillman presented information regarding the
enrollment at higher education institutions. He said
enrollment reports are modified to account for
students that take classes using multiple delivery
methods or take classes at more than one institution.
Dr. Hillman presented the following schedule
detailing enrollment at each higher education
institution for the 2007-08 academic year:
University System 2007-08
Headcount Enrollment Summary
Degree Credit1 Non-Degree Credit2 Non-Credit3 Total
Bismarck State College 4,122 557 9,035 13,714
Dickinson State University 2,631 0 259 2,890
Lake Region State College 2,499 38 1,712 4,249
Mayville State University 916 43 0 959
Minot State University 3,808 2 311 4,121
Dakota College at Bottineau 740 67 8 815
State College of Science 2,599 489 993 4,081
North Dakota State University 12,702 950 132 13,784
University of North Dakota 13,294 129 2,763 16,186
Valley City State University 1,079 11 0 1,090
Higher Education 6 September 23, 2009
Degree Credit1 Non-Degree Credit2 Non-Credit3 Total
Williston State College 941 42 2,816 3,799
Total 45,331 2,328 18,029 65,688
Less: Students taking classes at more
than one institution
1,744 0 57 1,801
Total University System enrollment 43,587 2,328 17,972 63,887
1All instructional activities that can be applied toward college degree or credit-based remedial courses taken by degreeseeking
students.
2Credit courses taken through continuing education for personal development, such as workshops or seminars, that do not
typically apply toward a degree.
3Instructional activities, such as workforce training, that do not apply toward a degree.
A copy of the information presented by Dr. Hillman
is on file in the Legislative Council office.
Senator Robinson suggested the committee
receive information regarding the number of students
enrolled in remedial education classes for the past
10 years.
Senator Grindberg suggested the committee
receive information regarding the number of resident
and nonresident students taking distance education
classes.
In response to a question from Representative
Delmore, Dr. Hillman said the University System
headcount enrollment report counts any student that
is taking degree credit classes.
Ms. Tamara Barber, Associate Vice President for
Finance and Operations, Bismarck State College,
presented information regarding online education
programs. She said online classes generate
additional revenue that is used to supplement state
appropriations and tuition revenue.
Ms. Barber said the average cost for providing a
class credit online is $183 compared to $275 for a
traditional delivery method. She said the average
tuition rate charged to students is $199 per credit for
online classes and $114 per credit for traditional
delivery methods. A copy of the information provided
by Ms. Barber is on file in the Legislative Council
office.
In response to a question from Representative
Delmore, Ms. Barber said many energy program
students take classes entirely online. She said
examinations for online classes generally require a
proctor in an effort to maintain the integrity of the
class.
Dr. Hillman said there is no significant difference in
the completion rates of students taking online classes
compared to classes on campus.
Mr. Goetz said many institutions are pursuing
grants made available through funding provided by
the American Recovery and Reinvestment Act of
2009. He said he would provide the committee with
updates at future meetings regarding the status of the
grant applications.
Representative Skarphol said he attended the
most recent meeting of the State Board of Higher
Education in Grand Forks. He said the board took
action regarding the cost increases relating to the
presidents' house projects at the University of North
Dakota and North Dakota State University. He said
the State Board of Higher Education is reviewing the
issues and will determine the appropriate action. He
said approval for the increased costs of the projects
still needs to be granted by the Budget Section.
Mr. Goetz presented the committee with a
preliminary schedule of the estimated construction
costs of the presidents' house projects at the
University of North Dakota and North Dakota State
University. He said the institutions are still
determining the final costs of the projects and a State
Board of Higher Education committee will be
reviewing the projects in detail.
Mr. Goetz expressed concern regarding the use of
institutional funding for the presidents' house projects.
He said State Board of Higher Education policy was
not followed by the institutions and reporting was not
done properly. A copy of the information presented by
Mr. Goetz is on file in the Legislative Council office.
Senator Andrist suggested that the University of
North Dakota and North Dakota State University be
held accountable for failing to follow policies and
procedures.
It was moved by Senator Robinson, seconded
by Representative Kelsch, and carried on a voice
vote that the meeting be adjourned subject to the
call of the chair.
Chairman Skarphol adjourned the meeting at
3:45 p.m.
___________________________________________
Brady A. Larson
Fiscal Analyst
___________________________________________
Allen H. Knudson
Legislative Budget Analyst and Auditor
ATTACH:1