North Dakota Legislative Higher Education Committee Meeting Minutes from Bismarck

NORTH DAKOTA LEGISLATIVE MANAGEMENT
Minutes of the
HIGHER EDUCATION COMMITTEE
Thursday, July 8, 2010
National Energy Center of Excellence, Bismarck State College
Bismarck, North Dakota
Representative Bob Skarphol, Chairman, called
the meeting to order at 9:00 a.m. in Room 304 of the
National Energy Center of Excellence.
Members present: Representatives Bob
Skarphol, Lois Delmore, Mark A. Dosch, Dennis
Johnson, Joe Kroeber, Bob Martinson, Darrell D.
Nottestad, Ken Svedjan, Clark Williams; Senators Tim
Flakoll, Tony S. Grindberg, Karen K. Krebsbach,
Elroy N. Lindaas, David O'Connell, Larry J. Robinson,
Tom Seymour
Members absent: Representatives Kathy
Hawken, Brenda Heller, Nancy Johnson, RaeAnn G.
Kelsch, Kenton Onstad; Senators John M. Andrist,
Ray Holmberg, Dave Nething
Others present: Jim W. Smith, Legislative
Council, Bismarck
See Appendix A for additional persons present.
It was moved by Senator Robinson, seconded
by Senator Seymour, and carried on a voice vote
that the minutes of the June 10-11, 2010, meeting
be approved as distributed.
HIGHER EDUCATION STUDY
Dr. Larry Skogen, President, Bismarck State
College, and Mr. Zachery Allen, National Energy
Center of Excellence Project Manager, Bismarck
State College, presented information regarding online
education (Appendix B). Dr. Skogen said student
enrollment in online courses is increasing at a faster
rate than student enrollment in traditional classroom
courses. He said recent studies report that online
education methods may be more effective than
traditional classroom teaching methods.
Mr. Allen said online courses may combine several
learning methods, including animated lectures and
simulations. He said some courses also allow
students to remotely control laboratory equipment
located on campus.
In response to a question from Representative
Skarphol, Dr. Skogen said many students choose to
take online courses due to the increased accessibility
and flexibility of the courses.
In response to a question from Representative
Delmore, Dr. Skogen said it is not possible to provide
all courses online. He said some courses require
students to use equipment and facilities that are
available only on campus.
In response to a question from Senator Robinson,
Dr. Michel G. Hillman, Vice Chancellor for Academic
and Student Affairs, North Dakota University System,
said federal financial aid programs are administered
the same for both online and traditional classroom
courses.
In response to a question from Senator Flakoll,
Mr. Allen said online courses allow a student to review
course materials from a prior presentation if needed.
In response to a question from Representative
Williams, Mr. Allen said developing an online course
requires the cooperation of several faculty and staff
members. He said the development of an online
course requires the use of staff members that have
knowledge of technology applications and graphic
design.
Dr. Skogen said advisory committees are used to
provide input when developing online courses.
In response to a question from Representative
Skarphol, Dr. Skogen said online courses generate
additional revenue that may be used at the discretion
of the institution.
In response to a question from Senator Flakoll,
Mr. Allen said online courses developed by Bismarck
State College may be licensed for use by private
businesses. He said the software is protected to
prevent unauthorized users from replicating the
programs.
The committee conducted a tour of the National
Energy Center of Excellence building. While on the
tour, the committee viewed several laboratories used
for energy education programs. Following the tour,
the committee reconvened in Room 335.
Ms. Debra Anderson, Director of Public Affairs and
Marketing, North Dakota University System,
presented information regarding the status of an
advertising campaign program to increase awareness
of two-year institutions and careers (Appendix C).
She said two media campaigns were used from
February to April 2010 that included television, radio,
newspaper, and social networking website
advertising. She said two additional media campaigns
are scheduled for November through December 2010
and February through March 2011.
In response to a question from Representative
Skarphol, Ms. Anderson said the advertising
campaigns are used to present the advertisements
during specific time periods.
In response to a question from Representative
Skarphol, Ms. Anderson said research costs for the
media campaign are expected to be 15 percent of the
total program budget. She said fewer research costs
Higher Education 2 July 8, 2010
are expected in the 2011-13 biennium if the program
is continued.
In response to a question from Senator Grindberg,
Ms. Anderson said there are many factors that affect
the enrollment of a college. She said the results of
the media campaign will need to be evaluated to
determine the effectiveness of the program.
Chairman Skarphol suggested the University
System provide information to the 2011 Legislative
Assembly regarding the use of funding for the media
campaign program during the 2009-11 biennium and
the expected use of funding for the program if it is
continued during the 2011-13 biennium.
Representative Nottestad said the program to
increase the awareness of two-year institutions and
careers has had a positive effect on both students and
parents.
Dr. Cynthia Lindquist Mala, President, Cankdeska
Cikana Community College, Fort Totten, presented
information regarding grants provided to tribal
colleges for the enrollment of nonbeneficiary students
(Appendix D). She said the completion rate of
nonbeneficiary students at tribal colleges varies
between each college. She said the overall
graduation rate at each college ranges from
11 percent to 52 percent as reported by the Integrated
Postsecondary Education Data System (IPEDS).
In response to a question from Senator Flakoll,
Dr. Hillman said the two-year college completion rate
data reported by IPEDS is based upon the number of
students who graduate within three years of enrolling
at a college. He said students who take more than
three years to graduate or who transfer to another
institution are considered a noncompleter for
statistical purposes.
In response to a question from Representative
Skarphol, Mr. Russell Mason Jr., President, Fort
Berthold Community College, New Town, said the
majority of funding provided to tribal colleges is from
federal appropriations.
In response to a question from Representative
Svedjan, Mr. Mason said there are several career
opportunities for college graduates on the Fort
Berthold Reservation due to the strong economic
climate.
The committee recessed for lunch at 12:15 p.m.
and reconvened at 1:00 p.m.
Dr. Jim Davis, President, Turtle Mountain
Community College, Belcourt, presented information
regarding the college (Appendix E). He said many
students attend a tribal college due to the location of
the college and the community culture. He said many
tribal college graduates choose to further their
education at other institutions.
Ms. Cathy McDonald, Director of Finance, North
Dakota University System, presented information
regarding the 2011-13 biennium budget request of the
University System (Appendix F). She said the
2011-13 biennium budget request includes funding for
19.75 new full-time equivalent positions. In addition,
she said, funding requested for equity distributions,
technology infrastructure, technology maintenance,
and program enhancements may also be used for
additional positions.
Ms. McDonald said the 2009-11 University System
budget includes $2,011,570 of funding from the
student loan trust fund. She said additional funding
from the general fund is being requested in the
2011-13 University System budget request due to a
projected decrease in revenue generated by the
student loan trust fund.
In response to a question from Representative
Delmore, Ms. McDonald said the only new position
being requested for the University System office for
the 2011-13 biennium is a facilities project manager.
She said the other new positions would be located at
various institutions.
In response to a question from Representative
Dosch, Mr. William G. Goetz, Chancellor, North
Dakota University System, said academic programs at
institutions are continuously evaluated, and some
programs are eliminated.
In response to a question from Senator Grindberg,
Ms. McDonald said equity funding may be used at the
discretion of each institution. She said some
campuses may use the equity funding to hire
additional positions.
Senator Grindberg suggested the committee
receive additional information regarding funding
requested by the University System for employee
retirement programs.
In response to a question from Senator Flakoll,
Mr. Goetz said the University System office would not
charge campuses for utilizing the services of the new
facilities project manager position being requested.
Representative Skarphol said consideration may
need to be given to the differences in the costs of
building materials in different locations in the state.
He said due to current demand for construction
materials and services in Williston, building materials
prices are significantly higher than in other parts of the
state.
Ms. Robin Putnam, Director of Financial Reporting,
North Dakota University System, presented
information regarding the University System employee
code of conduct (Appendix G). She said the
employee code of conduct requires each new
employee to review the code and sign a statement
certifying that the employee has read and agrees to
comply with the code. She said all benefited
employees are required to certify annually that they
have read and are in compliance with the code of
conduct.
In response to a question from Representative
Skarphol, Ms. Putnam said the current code of
conduct used by the University System is more
extensive than the previous code of conduct.
The Legislative Council staff distributed documents
provided by the University of North Dakota Foundation
(Appendix H) and the North Dakota State University
Development Foundation (Appendix I). The
documents detail the amount of financial support
Higher Education 3 July 8, 2010
provided by each foundation to its respective
institution by major program area.
Representative Delmore suggested the committee
receive information regarding the number of students
that receive scholarships as a result of institution
foundation support, including the number of academic
and athletic scholarships provided by the institution
foundations.
Dr. Hillman presented information regarding the
missions of University System institutions
(Appendix J). He said the mission of each institution
includes the functional emphasis of the campus, the
program emphasis of the campus, the primary
clientele, and other campus roles. He said the State
Board of Higher Education institutional missions task
force has been reviewing the campus missions to
determine if any changes are necessary.
Mr. Goetz provided an overview of the process
used to set goals for the performance of institution
presidents and the chancellor (Appendix K). He said
goals, objectives, and expected outcomes are set for
each institution president based on the mission of the
institution and the University System's strategic plan.
In response to a question from Representative
Skarphol, Mr. Goetz said the performance evaluation
of each institution president considers the success of
meeting the goals and objectives that have been set
for the president.
Dr. Hillman presented information regarding the
admissions standards of University System institutions
(Appendix L). He said the State Board of Higher
Education policy provides for minimum admissions
requirements. He said additional admissions
requirements are being used at North Dakota State
University and the University of North Dakota.
In response to a question from Senator Robinson,
Dr. Hillman said the State Board of Higher Education
policy provides some exceptions for students not
meeting minimum admissions requirements. He said
four-year institutions may admit students who do not
meet minimum admissions requirements on a
provisional basis.
Dr. Marsha Krotseng, Vice Chancellor for Strategic
Planning, North Dakota University System, presented
information regarding the University System strategic
plan (Appendix M). She said the strategic plan
includes measurements to determine the success of
meeting the goals and objectives of the plan.
In response to a question from Representative
Skarphol, Dr. Krotseng said the strategic plan
provides that goals be met by the year 2013. She
said new goals may be added to the strategic plan
that are to be met after the year 2013.
Representative Delmore expressed concern
regarding the inability to monitor students for success.
Dr. Krotseng said additional methods of monitoring
student success may be needed.
Dr. Hillman presented information regarding the
tenure process for higher education faculty members
(Appendix N). He said tenure is awarded to faculty
members by the State Board of Higher Education
based upon the recommendations of the appropriate
institution president and the chancellor. He said there
were 984 tenured faculty members in the University
System during the 2009-10 academic year, which
represented 29.6 percent of total instructional staff.
In response to a question from Representative
Skarphol, Dr. Hillman said tenured faculty members
receive annual performance reviews. He said tenured
faculty members that do not remedy performance
issues are subject to termination.
In response to a question from Representative
Dosch, Dr. Hillman said tenure provides a faculty
member with flexibility to teach within a discipline
using teaching methods that are not dictated by a
campus.
In response to a question from Representative
Skarphol, Dr. Hillman said faculty tenure only applies
to a specific academic program.
In response to a question from Senator Grindberg,
Dr. Hillman said tenure has generally been associated
with the research component of education. However,
he said, tenure in North Dakota is also focused on the
instructional component of education.
In response to a question from Representative
Dosch, Dr. Hillman said he would provide the
committee with information regarding the number of
tenured faculty that have been terminated at each
institution in the past 10 years.
Ms. Peggy Wipf, Director of Financial Aid, North
Dakota University System, presented information
regarding the state grant program and the science,
technology, engineering, and mathematics (STEM)
occupations student loan forgiveness program
(Appendix O). She said the state grant program
provides $1,200 grants each year to eligible resident
students that are pursuing an undergraduate degree
at a public, private, or tribal college. She said grants
were provided to 7,865 students during the 2009-10
academic year.
Ms. Wipf said the STEM occupations loan
forgiveness program recipients receive $1,500 per
year in loan forgiveness for each year that they are
employed in an approved STEM occupation in the
state. She said a recipient may receive a maximum of
$6,000 in loan forgiveness. She said there were
595 program recipients during the 2009-10 academic
year.
In response to a question from Representative
Skarphol, Ms. Wipf said the STEM occupations loan
forgiveness program gives priority to existing program
recipients. She said new program applicants are
eligible to receive funding after consideration is given
to existing program recipients.
Ms. Wipf presented information regarding tuition
reciprocity agreements with other states and
organizations (Appendix P). She said the University
System has tuition reciprocity agreements with the
state of Minnesota, the Western Interstate
Commission on Higher Education, and the Midwest
Higher Education Compact. She said the University
System also has agreements with the state of
Higher Education 4 July 8, 2010
Minnesota, Iowa State University, Kansas State
University, and the Western Interstate Commission on
Higher Education for the placement of North Dakota
students in veterinary medicine, dentistry, and
optometry programs.
In response to a question from Representative
Skarphol, Ms. Wipf said the North Dakota tuition
reciprocity agreement with Minnesota is based upon
the intent that an equal number of students from each
state will attend an institution in the other state. She
said the agreement provides that a cash payment be
made to the state that receives more students than it
sends to the other state. She said the state of
Minnesota is anticipated to provide a $3.3 million cash
payment to North Dakota for the 2009-10 academic
year.
Chairman Skarphol said future committee
meetings will focus on potential changes to higher
education. He said it is important that everyone,
including University System officials and institution
representatives, participate in the discussions of
potential changes to higher education.
Chairman Skarphol distributed a document with the
following suggestions for potential changes to higher
education:
1. Use a two-tiered or three-tiered system for
higher education budgeting and strategic
investment purposes.
2. Revise the role of the chancellor.
3. Set goals to increase the percentage of
students that complete four-year programs in
four years.
4. Centrally coordinate online courses and
reward collaboration.
5. Update the Higher Education Roundtable to
focus on the next 10 years.
6. Implement zero-based budgeting.
7. Increase the emphasis on fundraising for
institution presidents.
8. Increase coordination between elementary,
secondary, and postsecondary education.
9. Make entrepreneurial training a priority.
10. Provide special effort and recognition to
technology transfer to the private sector and
the creation of new business opportunities.
Chairman Skarphol asked the committee to review
and be prepared to discuss the suggestions at future
meetings. A copy of the document is on file in the
Legislative Council office.
Representative Martinson suggested the potential
changes be included as topics of discussions at the
September 2010 Higher Education Roundtable
meeting.
The meeting was adjourned at 3:30 p.m. subject to
the call of the chair.
___________________________________________
Brady A. Larson
Fiscal Analyst
___________________________________________
Allen H. Knudson
Legislative Budget Analyst and Auditor
ATTACH:16