North Dakota Legislative Higher Education Meeting Minutes from April 1, 2010

NORTH DAKOTA LEGISLATIVE MANAGEMENT
Minutes of the
HIGHER EDUCATION COMMITTEE
Thursday, April 1, 2010
House Chamber, State Capitol
Bismarck, North Dakota
Representative Bob Skarphol, Chairman, called
the meeting to order at 8:30 a.m.
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, Dave
Nething, David O'Connell, Larry J. Robinson, Tom
Seymour
Members absent: Representative Ken Svedjan;
Senators Ray Holmberg, Elroy N. Lindaas
Others present: Jim W. Smith, Legislative
Council, Bismarck
Representative David Monson, member of the
Legislative Management, was 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 March 2, 2010,
meeting be approved as distributed.
Chairman Skarphol announced the following
private sector members would be serving on the
Higher Education Roundtable:
• Dr. John T. Hamilton, Williston.
• Mr. Mike Jacobs, Grand Forks.
• Mr. Dave Farnsworth, Bismarck.
• Mr. Bob Wetsch, Mandan.
• Mr. David Batcheller, Fargo.
• Mr. Keith Hovland, Valley City.
• Mr. Don Morton, Fargo.
• Mr. Joe Rothschiller, Dickinson.
• Mr. John Bertel, Fargo.
• Mr. Tom Ross, Minot.
• Mr. Robert Harms, Bismarck.
• Mr. Earl Strinden, Grand Forks.
• Mr. Wayne Biberdorf, Williston.
Chairman Skarphol welcomed the private sector
members of the roundtable in attendance and invited
them to join the committee in discussions regarding
higher education issues. He said additional private
sector members may also be appointed to serve on
the roundtable.
Chairman Skarphol called on Dr. David Breneman,
Professor of Economics and Education, University of
Virginia, Charlottesville, Virginia, to present
information regarding the future of higher education.
Dr. Breneman said there has been a general decline
in state funding for higher education. However, he
said, some states are increasing funding for student
financial aid programs. He said some state student
financial aid programs are used to encourage
students to remain in the state following graduation
from college.
Dr. Breneman said even though most states have
recently reduced funding for higher education, North
Dakota has provided significant increases in higher
education funding. He said North Dakota has an
opportunity to use its current positive financial
condition to encourage businesses to relocate to the
state, which will encourage more students to remain in
state following graduation from college. He said it is
important to link higher education programs to the
needs of the economy.
Dr. Breneman said financial concerns in other
states will force changes in higher education. He said
reduced funding for higher education will increase the
efficiency and effectiveness of programs. He said
higher education in North Dakota should also be
innovative even though the state is in a positive
financial position.
In response to a question from Mr. Farnsworth,
Dr. Breneman said there are two theories regarding
why the cost of education has increased at a rate
faster than other sectors of the economy. He said the
first theory is that higher education has a greater
percentage of labor costs compared to other
industries. He said the second theory is that higher
education institutions generally spend all funding that
they receive.
In response to a question from Mr. Morton,
Dr. Breneman said some higher education institutions
supplement state support and tuition revenue with
other sources of funding. He said some universities
rely on endowments to provide for a portion of
program costs.
Dr. Breneman said the public perception of higher
education is that higher education institutions are
more focused on finances than educating students.
He said it is important for institutions to demonstrate
that costs can be lowered and efficiencies achieved.
He said an emphasis on institutional missions and
setting priorities for higher education can lead to
greater efficiencies.
In response to a question from Mr. Batcheller,
Dr. Breneman said it is important to use the correct
measures when evaluating the use of performance
Higher Education 2 April 1, 2010
funding. He said student completion rates may be an
effective measure.
In response to a question from Senator Flakoll,
Dr. Breneman said some external factors can
influence academic programs. He said recent
external initiatives have placed an emphasis on
programs involving science, technology, engineering,
and mathematics.
In response to a question from Mr. Farnsworth,
Dr. Breneman said programs should be reviewed to
ensure that workforce demand is present for the
programs. He said students need to be aware of
career opportunities associated with the completion of
an academic program.
In response to a question from Representative
Onstad, Dr. Breneman said collaboration among the
various levels of education is important. He said
students graduating from high school need to be
prepared for college.
Mr. Larry A. Isaak, President, Midwestern Higher
Education Compact, Minneapolis, Minnesota,
presented information regarding college access and
success. He said college access and success are
important because the economy requires an educated
workforce. He said there is global competition for
educated workers.
Mr. Isaak said higher education systems should
place an emphasis on students completing programs.
He said alternative education delivery methods may
be utilized to improve student completions.
A copy of the information presented by Mr. Isaak is
on file in the Legislative Council office.
In response to a question from Senator Andrist,
Mr. Isaak said institutions are under pressure to
increase enrollments, which economically benefits a
community. He said successful colleges in the future
will be sought after due to quality programs and high
completion rates.
In response to a question from Representative
Kelsch, Mr. Isaak said a successful core program
should be the foundation for a four-year degree. He
said program courses beyond the core program need
to be evaluated to determine relevance to the
academic program.
In response to a question from Mr. Farnsworth,
Mr. Isaak said students need to be accountable for
decisions they make. He said an emphasis should be
placed on career advising in high school to help
students understand future career options.
In response to a question from Senator Grindberg,
Mr. Isaak said many online students are also taking
classes on campus. He said charges for online
classes should be set at an appropriate level.
In response to a question from Mr. Hovland,
Mr. Isaak said some higher education institutions will
need to adopt new models of education delivery in
order to maintain revenues and viability.
In response to a question from Dr. Hamilton,
Mr. Isaak said some standardization has occurred in
education programs across institutions. He said a
common course numbering system has provided
consistency in classes at North Dakota University
System institutions.
In response to a question from Mr. Bertel,
Mr. Isaak said higher education governing boards
need to be active in increasing the enrollment of
nontraditional students. He said policies should also
be developed to increase the enrollment of students
that may have some education, but no degree.
In response to a question from Representative
Skarphol, Mr. Isaak said the Legislative Assembly
should define state priorities for higher education and
communicate the priorities to colleges and
universities. He said measures should be used to
determine the success of meeting the goals and
priorities.
Mr. Morton said it is important for institutions to
have the ability to quickly determine when an initiative
is not successful.
Representative Kelsch said policies for education
should recognize an increased level of diversity in
student populations.
Mr. Isaak said special initiatives may be developed
to address unique needs of education in the state. He
said an initiative could be developed to improve
completion rates of students from certain ethnic
backgrounds.
Mr. Isaak said it is important to be aware of the
competition in higher education and the workforce.
He said the competition for an educated workforce is
now global.
Mr. Hovland said the state needs to react quickly to
changes and adapt to the future environment of
education.
Chairman Skarphol asked the private sector
members of the Higher Education Roundtable to
consult with their colleagues to determine areas of
higher education to review at future meetings.
The committee recessed for lunch at 11:50 a.m.
and reconvened at 12:45 p.m.
Mr. William G. Goetz, Chancellor, North Dakota
University System, presented information regarding
the University System strategic plan. He presented
the following strategic plan goals and objectives:
State Board of Higher Education
Strategic Plan Goals and Objectives
Goal #1 - The University System is accessible--a view held
by all North Dakotans.
• Increase the percentage of recent North Dakota high
school graduates enrolled in the University System by five
percentage points.
• Increase the percentage of North Dakota's total young
adult population (aged 25 to 34) enrolled in University
System institutions for credit to 6 percent.
• Increase the percentage of North Dakota's total population
(aged 35 to 44) enrolled in University System institutions
for credit to 2 percent.
• Increase the total number of certificates and associate and
baccalaureate degrees awarded by 4 percent.
• Increase the total number of graduate and professional
degrees awarded by 3 percent.
• The percentage of family income in North Dakota needed
to pay for community college after deducting grant aid will
decrease to the national average.
Higher Education 3 April 1, 2010
Goal #2 - North Dakotans recognize that the University
System is affordable at a level that can be sustained.
• North Dakota will rank in the top 20 percent of states in per
capita support for higher education--a level that is both
achievable and sustainable.
• North Dakota will rank in the top 10 percent of the most
productive states in total funding per degree/certificate.
• State strategic plan guides allocation of resources to
achieve the vision.
Goal #3 - The University System increases the overall
vitality of the state through exceptional education,
research, training, and service.
• Increase completions in targeted, high-potential programs.
• Increase the number of certificates and associate degrees
awarded in vocational and technical fields at community
colleges by 5 percent.
• Rank first in the nation for the percentage of degrees and
certificates awarded in science, technology, engineering,
and mathematics fields.
• University System students will perform at or above the
national average on all nationally recognized examinations.
• University System students will exceed the national
average first-time pass rates on all professional licensure
examinations.
• University of North Dakota and North Dakota State
University research will, at a minimum, demonstrate overall
progress on several research criteria based on an external
evaluation, including collaborations in and outside North
Dakota, patents, proposals, publications, and new faculty
hires.
• The centers of excellence will, at a minimum, meet
expectations according to the criteria established by the
Centers of Excellence Commission for annual review.
• University System alumni and students will report levels of
satisfaction with preparation in their selected major,
acquisition of specific skills, and technology knowledge and
abilities that exceed the national average.
• Employers will report high/increased levels of satisfaction
with the preparation of recently hired University System
graduates benchmarked against historical trends.
• Increase the number of businesses served by TrainND
workforce training by at least 4 percent.
Goal #4 - The 11 institutions comprising the University
System work together to achieve the vision effectively.
• The University System will report the number of students
who successfully transfer into a degree program at another
University System institution.
• University System institutions will benchmark the number
of student credit-hours delivered to students attending
another University System institution against historical
data.
• Integrate the role of each University System institution
within the overall system mission and strategic plan.
• Increase awareness of the University System and its
institutions through a common, consistent message.
• Increase State Board of Higher Education opportunity for
discussion of strategic policy topics.
A copy of the information presented by Mr. Goetz
is on file in the Legislative Council office.
Mr. Farnsworth suggested that an objective be
added to the University System strategic plan to
strengthen partnerships with private industry.
In response to a question from Mr. Farnsworth,
Mr. Goetz said institutions have been asked to
increase resources dedicated to career counseling
and advising. He said higher education needs to work
collaboratively with elementary and secondary
education to address career advising issues.
In response to a question from Mr. Batcheller,
Mr. Goetz said the University System strategic plan
could more clearly emphasize the need for increased
cooperation with the private sector for research
activities, including additional research activity
incentives.
Mr. Wetsch suggested information be provided to
the Higher Education Roundtable members regarding
academic programs at each institution, including
student enrollment in each program.
In response to a question from Representative
Dosch, Mr. Goetz said the University System strategic
plan includes expanding education delivery methods
as well as increasing the use of technology.
The Legislative Council staff presented a
memorandum entitled Department of Commerce Draft
Economic Development Strategic Plan and State
Board of Higher Education Strategic Plan. The
memorandum provides information regarding
University System strategic plan objectives that are
related to strategies of the Department of Commerce
draft economic development strategic plan.
Chairman Skarphol asked the private sector
members of the Higher Education Roundtable to
provide suggestions at future meetings for improving
efficiency in education.
The meeting was adjourned at 3:45 p.m., subject
to the call of the chair.
___________________________________________
Brady A. Larson
Fiscal Analyst
___________________________________________
Allen H. Knudson
Legislative Budget Analyst and Auditor
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