North Dakota Higher Education Legislative Committee

NORTH DAKOTA LEGISLATIVE MANAGEMENT
Minutes of the
HIGHER EDUCATION COMMITTEE
Tuesday and Wednesday, January 19-20, 2010
Roughrider Room, State Capitol
Bismarck, North Dakota
Representative Bob Skarphol, Chairman, called
the meeting to order at 9:00 a.m. on Tuesday,
January 19, 2010.
Members present: Representatives Bob
Skarphol, Lois Delmore, Mark A. Dosch, Kathy
Hawken, Brenda Heller, Dennis Johnson, Nancy
Johnson, RaeAnn G. Kelsch, Joe Kroeber, Bob
Martinson, Darrell D. Nottestad, Kenton Onstad, Clark
Williams; Senators John M. Andrist, Tim Flakoll,
Tony S. Grindberg, Karen K. Krebsbach, Elroy N.
Lindaas, Dave Nething, David O'Connell, Larry J.
Robinson, Tom Seymour
Members absent: Representative Ken Svedjan;
Senator Ray Holmberg
Others present: Jim W. Smith, Legislative
Council, Bismarck
Dr. Gary Hagen, President, Mayville State
University, Mayville
Dr. Richard A. Hanson, Interim President, North
Dakota State University, Fargo
Dr. Robert Kelley, President, University of North
Dakota, Grand Forks
Dr. Richard McCallum, President, Dickinson State
University, Dickinson
Dr. Gary Rabe, Vice President for Academic
Affairs, Minot State University, Minot
Dr. Steven W. Shirley, President, Valley City State
University, Valley City
William G. Goetz, Chancellor, North Dakota
University System, Bismarck
Jeff Delzer, State Representative, Underwood
Jim Kasper, State Representative, Fargo
See attached appendix for additional persons
present.
It was moved by Senator Nething, seconded by
Senator Robinson, and carried on a voice vote
that the minutes of the October 28, 2009, meeting
be approved as distributed.
Chairman Skarphol announced that the next
committee meeting will be March 2, 2010, in
Bismarck. He said the committee will have a joint
meeting with the Workforce and Education
Committees on March 31, 2010, followed by a regular
committee meeting on April 1, 2010.
HIGHER EDUCATION STUDY
Chairman Skarphol welcomed Dr. Gary Hagen,
President, Mayville State University, Dr. Richard
McCallum, President, Dickinson State University,
Dr. Gary Rabe, Vice President for Academic Affairs,
Minot State University, and Dr. Steven W. Shirley,
President, Valley City State University, to the meeting.
He expressed concern that the presidents of the
University of North Dakota and North Dakota State
University were not in attendance. He said the
meeting will focus on the future of higher education
while reviewing current higher education practices.
Program Evaluation Procedures
Chairman Skarphol called on the campus
presidents to provide information regarding processes
used to evaluate programs. The campus presidents
indicated the following tools are being used to
evaluate programs on their campuses:
• Results of national examinations.
• Accreditation processes.
• Faculty surveys.
• Tests to benchmark the progress of students in
programs.
• Reviews of program enrollment and semester
credit-hour production.
In response to a question from Representative
Skarphol, Mr. Randall Thursby, Chief Information
Officer, North Dakota University System, Fargo, said
campus input into the statewide longitudinal data
system has been limited so far. Mr. Thursby said
information expectations need to be developed at a
statewide level first.
Senator Andrist said the quality of higher education
in North Dakota is excellent. He said isolated issues
occasionally appear in programs at various
campuses.
In response to a question from Senator Flakoll,
Mr. William G. Goetz, Chancellor, North Dakota
University System, said the University System
accountability measures report contains measures
required by both statute and by State Board of Higher
Education policy. Mr. Goetz said the 2009
accountability measures report will be available within
a few months.
In response to a question from Representative
Skarphol, Mr. Goetz said academic programs and
other factors are used when selecting peer institutions
for financial comparisons.
Dr. Rabe said Minot State University uses three
peer groups that include financial peers, in-state
peers, and aspirational peers. He said aspirational
peers are used to develop plans to become a premier
Higher Education 2 January 19-20, 2010
institution in the region. He said a significant number
of variables are used when selecting peers.
Mr. Goetz said it is important to consider what is
expected of higher education when evaluating
program costs. He said the University System budget
initiatives reflect the need to offer certain programs to
meet the workforce needs of the state.
In response to a question from Representative
Onstad, Dr. Rabe said there needs to be a balance
between access and duplication when evaluating
whether to develop a program at an institution that is
already offered at another institution.
In response to a question from Senator Flakoll,
Dr. Michel Hillman, Vice Chancellor for Academic and
Student Affairs, North Dakota University System, said
a new academic program is automatically reviewed
when the first class of students graduates from the
program. Dr. Hillman said campuses generally do not
receive funding specifically for new programs so
campuses are selective when determining whether to
offer a new program.
Dr. Hillman said all programs are reviewed by the
University System office on a five- to seven-year
cycle. He said course enrollments are used as part of
the program review process.
In response to a question from Representative
Delmore, Dr. Hillman said graduate-level programs
are also reviewed by the University System office. He
said many graduate program enrollments are near
capacity.
In response to a question from Senator Andrist,
Mr. Goetz said the cost of higher education is a
concern to the State Board of Higher Education. He
said funding provided by the 2009 Legislative
Assembly to limit tuition increases was important for
student affordability. He said accessibility needs to be
considered when reviewing higher education costs.
Dr. McCallum said access, affordability, and
relevance are considered when determining whether
to add or remove a program. He said consideration
needs to be given to student interest, contribution to
economic development, cost, contribution to the
institutional mission, and relation to existing programs.
In response to a question from Representative
Kelsch, Dr. McCallum said removing a program
involves phasing out program courses. He said it is
important to allow students already enrolled in the
program to complete the program.
In response to a question from Senator Nething,
Dr. McCallum said a process used to add or remove
programs has been developed at the system level.
He said the necessary steps to add or remove a
program may take several months.
Mr. Goetz said some programs could be expanded
if funding was available. He said the wind energy
program at Lake Region State College could be
expanded, but the college does not have adequate
funding to expand the program at this time.
In response to a question from Senator Robinson,
Mr. Goetz suggested that a pool of funding be made
available to the University System that could be used
to quickly respond to workforce needs. He said the
funds would be allocated to campuses to develop
programs as needed to meet workforce needs. He
said the Legislative Assembly should provide clear
expectations regarding the use of the funds.
In response to a question from Representative
Dosch, Mr. Goetz said the University System received
a substantial increase in funding from the 2009
Legislative Assembly. However, he said, most of the
funding increase was allocated to salary and
operating expenses increases. He said equity funding
was the only flexible funding that was allocated to
campuses.
Representative Skarphol said campuses may need
more flexibility in determining what programs to offer
and what the missions of the campuses should be.
Dr. Hagen said there may be some concerns with
the current missions of institutions. He said the
missions of four-year institutions do not allow the
institutions to respond to current two-year program
access issues in the state.
In response to a question from Representative
Kelsch, Mr. Goetz said a funding pool to address
immediate workforce needs should have clear
guidelines set by the Legislative Assembly. He said
the pool would be used for programs that have a vital
need in the state with either the chancellor or State
Board of Higher Education determining the final use of
funds. He said reporting requirements would be used
to inform the Legislative Assembly on the uses of
funding from the funding pool.
Faculty Engagement and Evaluation
Chairman Skarphol asked the campus presidents
to comment regarding the engagement of faculty in
decisionmaking processes, the process used to
evaluate faculty, and funding available for faculty
development. The campus presidents provided the
following examples of faculty involvement and
evaluation:
• Faculty are involved in developing campus
budget requests.
• Faculty are involved in campus master
planning.
• Campus committees on budget and finance
include faculty members.
• Funds are allocated for faculty initiatives.
• Funds are allocated for the recruitment of
students by faculty.
• Funds are allocated for quality improvement.
• Student course evaluations are used for
evaluation purposes.
• Student retention in courses is reviewed when
evaluating faculty.
In response to a question from Representative
Skarphol, Ms. Laura Glatt, Vice Chancellor for
Administrative Affairs, North Dakota University
System, said the University System has biennial and
annual budget processes. Ms. Glatt said the biennial
budget process begins prior to the start of a legislative
Higher Education 3 January 19-20, 2010
session. She said following a legislative session the
campuses develop annual budgets based on
guidelines set forth by the State Board of Higher
Education.
Ms. Glatt said campus input is provided in the
budget process through campus leaders visiting with
faculty, staff, and students to determine unique
campus budget needs. She said systemwide projects
are also identified. She said the chancellor reviews all
budget needs and then develops a budget to be
presented to the State Board of Higher Education.
In response to a question from Senator Grindberg,
Ms. Glatt said campuses have the ability to reallocate
funding between programs on their campus.
In response to a question from Senator Seymour,
Ms. Glatt said campuses are responsible to project
future enrollments as part of the budgeting process.
In response to a question from Representative
Skarphol, Ms. Glatt said legislative appropriations are
made specifically for each campus. She said the only
opportunity to reallocate funding between campuses
is through the University System biennial budget
request.
Representative Kelsch suggested the University
System focus student recruiting efforts on geographic
areas recently affected by economic recession.
Senator Grindberg said campuses need to be
aggressive in recruiting nonresident students that will
remain in the state following graduation.
Mr. Goetz said the State Board of Higher
Education strategic plan includes a focus on
nontraditional students. He said the University
System office has developed an adult council to
address the educational needs of nontraditional
students. He said the adult council consists of
members of the business community as well as state
agencies, including the Department of Commerce,
Job Service North Dakota, the Department of
Corrections and Rehabilitation, and the Department of
Human Services.
In response to a question from Representative
Skarphol, Dr. Shirley said student evaluations are
used extensively when evaluating new faculty
members. He said all courses at Valley City State
University will include student evaluations of faculty
beginning in 2010.
Senator Seymour said many faculty are evaluated
by students on an annual basis.
In response to a question from Senator Flakoll,
Dr. Rabe said the student evaluation of faculty that
teach online courses is done in the same manner as
for faculty that teach courses in a traditional
classroom. He said online students receive the same
course evaluation form that is completed by oncampus
students.
In response to a question from Representative
Skarphol, Dr. Rabe said tenured faculty may be
placed on a performance improvement plan if they do
not meet performance criteria.
Student Involvement
Chairman Skarphol called on the campus
presidents to provide information regarding student
involvement on campuses, including the role of
students in developing and evaluating programs. The
campus presidents provided the following examples of
student involvement:
• Students complete course and faculty
evaluations.
• Students serve on campus committees.
• Campuses review the results of student
surveys.
• Recent graduates are surveyed for comments.
• Student governments are allowed to petition for
academic changes.
In response to a question from Senator Robinson
regarding the use of external parties to review
programs, Dr. Rabe said the University System
accountability measures report includes a measure of
employer satisfaction with recent graduates.
Dr. Shirley said advisory boards are used to obtain
suggestions regarding certain programs.
In response to a question from Representative
Skarphol, Dr. McCallum said examples of student
records used on campuses to evaluate students
include grade point averages and American College
Test scores.
Mr. Ken Story, North Dakota Student Association,
Fargo, provided comments to the committee regarding
student involvement on campuses. Mr. Story said
many students serve on campus committees that
involve academic and other issues. He said course
and faculty evaluation surveys completed by students
are used for improving faculty performance.
The committee recessed for lunch at 1:00 p.m. and
reconvened at 2:00 p.m.
Higher Education Funding
Chairman Skarphol called on campus presidents to
comment regarding the use of incentive or
performance funding measures. The campus
presidents provided the following examples of
measures that could be used for performance or
incentive funding:
• Student satisfaction surveys.
• Employer satisfaction.
• Standardized tests.
• Retention rates.
• Attainment of strategic goals.
• Research activities.
• Completion rates.
• Response to workforce needs.
Future of Higher Education
Chairman Skarphol called on campus presidents to
comment regarding the future of higher education,
including expected changes in the education
environment, in teaching methods, in physical plant
needs, and in funding methods. Campus presidents
Higher Education 4 January 19-20, 2010
made the following comments about the future of
higher education:
• Campuses are developing plans to address
future regional needs.
• Campuses are expecting a greater percentage
of nontraditional students
• There will be an increasing need for
collaboration among institutions.
• There will be increased demands for
affordability and accountability.
• There may be a shortage of faculty.
• There may be changes in accreditation
standards.
• The use of technology will increase.
• There will be an increase in the number of
remedial courses for students not prepared for
college.
• There will be an increase in the number of
students taking classes from multiple campuses
simultaneously.
• Flexible course scheduling will be needed to
accommodate student schedules.
• There will be an increase in the number of parttime
students.
• There will be an increase in student diversity.
• More students will enroll in health occupations
programs.
Mr. Goetz said discussions should take place with
representatives of elementary and secondary
education regarding the expectations of students
entering college. He said the future of higher
education in the state is linked closely with the future
of the state in general.
Senator Grindberg said the state needs to monitor
current trends in education and react appropriately.
In response to a question from Senator Grindberg,
Dr. Rabe said future accreditation standards may
change due to an increase in distance education. He
said an accreditation focus will be placed on distance
education courses to ensure the courses are meeting
the same educational requirements as a traditional
on-campus course.
Dr. McCallum said the accreditation process has
traditionally focused on inputs into education, such as
library books and faculty degrees. He said future
accreditation standards are changing to an output
focus that evaluates student learning outcomes.
Senator Nething said the Workforce Committee
has received comments from members of the private
sector indicating that college graduates should have
adequate "soft" skills, such as basic education
knowledge and workplace skills. He said focusing too
much on the accreditation process may diminish the
ability of institutions to ensure that graduates have
adequate "soft" skills.
Senator Andrist said the role of remedial education
at universities may need to be evaluated. He said
some students may be better suited to attend a
vocational education institution rather than a
university.
In response to a question from Senator Flakoll,
Chairman Skarphol asked the University System
office to provide information at a future meeting
regarding the use of higher education funding for
items such as financial aid, instruction, and
administration. He also asked the University System
office to provide information regarding the higher
education long-term finance plan and funding
initiatives included in the 2009-11 University System
budget request.
Senator Grindberg said institutions need to
consider what the appropriate charges are for an
online course when the course enrollment is primarily
from nonresident students.
Senator Flakoll said it is important for high school
students to be made aware of the new academic and
career and technical education scholarships, including
the scholarship requirements.
The committee recessed at 3:45 p.m. and
reconvened at 8:30 a.m. on Wednesday, January 20,
2010.
Chairman Skarphol welcomed Dr. Robert Kelley,
President, University of North Dakota, and
Dr. Richard A. Hanson, Interim President, North
Dakota State University, to the meeting.
Tuition Waivers
Chairman Skarphol asked the campus presidents
to comment regarding the use of tuition waivers at
campuses. The campus presidents made the
following comments regarding tuition waivers:
• Both partial and full tuition waivers are provided
to students.
• Tuition waivers are offered in categories that
include cultural diversity, foreign student,
graduate student, higher education exchange
agreement, and National Guard member.
• Most waivers provided at research universities
are for graduate students.
• Most cultural diversity waivers are provided to
American Indian students.
• Many tuition waivers are used to reduce a
nonresident student's tuition costs to the
resident rate.
• Tuition waivers are an important tool for
recruiting students for research activities.
• Tuition waivers are generally not provided to
students that only take online classes.
Ms. Alice Brekke, Vice President of Finance and
Operations, University of North Dakota, Grand Forks,
provided comments regarding the terminology used
for tuition waivers and scholarships. Ms. Brekke said
a tuition waiver is used by an institution to reduce
either part or all of a student's tuition. She said
scholarships are outside sources of funding used to
pay part or all of the tuition of a student. She said she
would provide the committee with information
regarding how many tuition waivers are provided at
the University of North Dakota for full tuition costs
compared to partial tuition costs.
Higher Education 5 January 19-20, 2010
In response to a question from Senator Nething,
Mr. Paul LeBel, Interim Vice President of Academic
Affairs, University of North Dakota, Grand Forks, said
about 45 percent of graduate students at the
university receive a graduate student tuition waiver.
Mr. LeBel said the waivers are limited to the number
of actual credit-hours needed to complete a graduate
course. He said the average graduate student tuition
waiver is approximately $4,500.
Chairman Skarphol asked all campus presidents to
provide information to the committee at a future
meeting regarding the number of students who
receive a tuition waiver that remain in the state
following graduation.
Ms. Glatt distributed the following schedule
detailing tuition waivers granted at each institution for
the 2008-09 academic year:
2008-09 Tuition Waivers
Institution Number Value
Bismarck State College 180 $151,709
Dickinson State University 890 3,484,272
Lake Region State College 147 227,089
Mayville State University 157 222,557
Minot State University 842 1,339,249
Dakota College at Bottineau 38 51,161
State College of Science 842 753,257
North Dakota State University 3,631 13,061,132
University of North Dakota 2,410 7,454,948
Valley City State University 211 442,283
Williston State College 65 77,248
Total 9,413 $27,264,905
Ms. Glatt also provided information regarding
tuition waivers granted during the 2007-08 academic
year. A total of 8,681 tuition waivers were granted
during the 2007-08 academic year with a value of
$24,147,014. Of the total value of tuition waivers
granted, $8,224,898, or 34.1 percent, was given to
resident students and $15,922,116, or 65.9 percent,
was granted to nonresident students.
Ms. Glatt distributed the following schedule
detailing the value of tuition waivers granted at
institutions as a percentage of total tuition:
Institution 2008 2007 2006 2005
Bismarck State College 1.0% 1.1% 1.5% 1.8%
Dakota College at Bottineau 3.0% 3.5% 2.6% 3.7%
Mayville State University 4.0% 5.0% 9.9% 13.1%
Williston State College 4.2% 3.9% 3.5% 3.0%
Lake Region State College 5.2% 4.3% 3.0% 2.3%
State College of Science 5.7% 7.0% 6.0% 5.3%
University of North Dakota 6.7% 8.0% 8.4% 7.9%
Minot State University 7.4% 7.4% 6.8% 6.6%
Valley City State University 8.1% 8.1% 8.5% 7.4%
North Dakota State University 13.2% 12.1% 12.9% 13.7%
Dickinson State University 21.1% 19.3% 16.5% 13.0%
System total 9.1% 9.3% 9.4% 9.2%
A copy of the information distributed by Ms. Glatt is
on file in the Legislative Council office.
Dr. McCallum said tuition waivers provided to
students do not waive auxiliary costs, such as housing
and board. He said campuses benefit by having the
additional students who utilize the auxiliary services.
In response to a question from Senator Andrist,
Dr. McCallum said the mission of a campus may be
the reason that a campus offers more tuition waivers
than a comparable institution.
In response to a question from Senator O'Connell,
Dr. McCallum said each higher education student
generates an economic impact to a community of an
estimated $8,700 per academic year.
In response to a question from Representative
Nottestad, Dr. McCallum said international students
are carefully screened to ensure that students are
able to pay their education costs prior to enrolling at
an institution. He said institutions also use language
proficiency tests to determine if an international
student will be able to adequately learn in a regular
classroom setting.
Ms. Glatt said the University System is developing
a new reporting system for students receiving tuition
waivers that will provide information regarding
auxiliary revenue generated by campuses as a result
of the students.
Representative Kelsch said diversity is an
important part of the educational process. She said
the global economy requires employees who are
familiar with other cultures.
In response to a question from Senator O'Connell,
Dr. Kelley said the University of North Dakota is
focusing research efforts on the areas of energy and
biomedical and life sciences.
Chairman Skarphol asked the University System
office to provide information at a future committee
meeting regarding the use of funds at each institution
in broad categories, such as instruction, research, and
administration.
Senator Grindberg said the Higher Education
Roundtable allowed for the success of economic
development initiatives at each institution. He said the
Workforce Committee is reviewing the state's growth
plan and how higher education is a part of the plan.
Workforce Needs
Chairman Skarphol asked campus presidents to
provide information regarding how institutions are
addressing the workforce needs of the state. The
campus presidents provided the following examples:
• Developing collaborative programs for nursing.
• Adding new programs for community
environment and athletic training.
• Partnering with other institutions for research
activities.
• Developing internship opportunities for
students.
• Increasing the number of energy programs
offered.
In response to a question from Representative
Williams, Mr. Wayne Kutzer, State Director,
Department of Career and Technical Education, said
the department is in the process of training career
Higher Education 6 January 19-20, 2010
advisors. Mr. Kutzer said career advisors need a fouryear
degree and five years of work experience. He
said career advisors also need 120 hours of training to
become certified.
In response to a question from Representative
Skarphol, Mr. Kutzer said there are approximately
12 people currently interested in the career advisor
training. He said increased marketing efforts will be
used to encourage more people to become certified.
Representative Kelsch said some people that are
interested in becoming a career advisor may not meet
the five-year work experience requirements.
Other Higher Education Issues
Mr. Goetz presented information regarding the
collection of data for performance measures. He said
the University System accountability measures report
provides information regarding certain higher
education performance measures. He said the
performance measures relate to the University
System strategic plan. He said each campus is
developing a strategic plan based on the University
System plan.
Mr. Thursby said data is collected from University
System students and stored in a data warehouse. He
said data marts will be implemented in the future that
will allow the data to be effectively evaluated.
Mr. Thursby said there are ongoing challenges with
the statewide longitudinal data system. He said the
University System needs to continue working with the
Information Technology Department and Department
of Public Instruction to determine the types of
information that should be collected.
Ms. Glatt presented information regarding student
loans that are delinquent at each campus. She said
as of June 30, 2009, there were 2,504 student loans
delinquent at campuses with a total value of
$4,311,005. She said very few loans are not
collected. She said 2008-09 loan writeoffs totaled
$83,916.
Ms. Glatt provided a list of grant applications that
have been submitted by University System institutions
for funding provided through the federal American
Recovery and Reinvestment Act of 2009. She said of
the 30 applications submitted, 2 grant requests were
awarded at the University of North Dakota through the
National Science Foundation. She said other
University System projects previously received
funding from federal fiscal stabilization funds
designated for other government uses that were
allocated to the Governor's office through the federal
American Recovery and Reinvestment Act of 2009.
Ms. Debra Anderson, Director of Public Affairs and
Marketing, North Dakota University System, provided
an update regarding the use of an $800,000
appropriation provided by the 2009 Legislative
Assembly for increasing the awareness of two-year
institutions and related careers. Ms. Anderson said
research was conducted to determine how to
effectively market two-year institutions and careers in
the state. She said the initiative will be formally
launched in February 2010 with the use of television
and print advertisements and a new website.
Mr. Goetz said a State Board of Higher Education
task force has been appointed to review the mission
of University System institutions. He said he would
provide more information at future committee
meetings regarding the work of the task force.
Mr. Goetz said a search committee has been
formed for the hiring of the next president of North
Dakota State University. He said the goal of the
committee is to name a new president by the end of
May 2010 with the new president taking office by
July 2010.
A copy of the information presented by
representatives of the University System is on file in
the Legislative Council office.
COMMITTEE DISCUSSION
Senator Robinson suggested the committee
receive information regarding the use of local funds on
campuses, including the transfer of auxiliary funds for
nonauxiliary uses.
Chairman Skarphol said the next committee
meeting will focus on higher education finance,
including the University System long-term finance plan
and the use of local funds at institutions.
Representative Dosch suggested the committee
receive information regarding the tenure process for
higher education faculty.
Chairman Skarphol thanked the campus
presidents for attending the meeting and providing
information to the committee.
Chairman Skarphol asked committee members to
provide suggestions to him for private sector members
to serve on the Higher Education Roundtable.
The committee adjourned subject to the call of the
chair at 12:00 noon.
___________________________________________
Brady A. Larson
Fiscal Analyst
___________________________________________
Allen H. Knudson
Legislative Budget Analyst and Auditor
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