FARGO - North Dakota's Board of Higher Education trimmed $50 million from a budget request that critics described as too rich by dropping a proposed student scholarship endowment program.

The reduction will lower the cost of one-time projects included in the proposed budget from $136 million to $86 million. Board members said Thursday they supported the endowment proposal, but believed that it was not crucial.

"The question is, 'Do we need the money to run our schools?'" said board member Richie Smith of Wahpeton. "It's a great idea. It would be nice to have. It's hard to justify."

The board approved the budget last month, but met last week to evaluate the numbers after some lawmakers criticized the plan as too expensive. The blueprint will be considered by the 2009 Legislature.

Smith said he did not believe the complaints about cost were a factor in dumping the endowment. "It wasn't for me," he said after the vote.

No changes were made to the university system's permanent budget proposal, which would boost spending from $441.5 million to $557.4 million over two years, an increase of 26.3 percent.

The system's plan also includes the $86 million for one-time initiatives, and $102 million for 14 proposed construction projects, ranked in order of importance.

The proposed $50 million endowment was designed to be matched with money from private donors. Board member Duaine Espegard, a former Grand Forks state senator, said the plan is better suited to be a legislative initiative.

"I certainly advocate for that," he said.

The board spent several hours listening to presentations from the university system's 11 campuses before ranking the 14 building projects for legislative consideration.

The No. 1 project is a proposed $5.7 million renovation of Horton Hall at the North Dakota State College of Science in Wahpeton. Horton, home to three of the Wahpeton school's programs, needs repairs and does not meet safety codes.

"Every item on this list creates health and safety issues," board member Jon Backes said. "Our job is to determine what's most important today."

William Goetz, chancellor of the state university system, said the rankings "create a focus" for lawmakers. "That priority list can change any number of times," he said.

The Legislature has approved money for individual projects, but most of them are typically financed by selling bonds. The bonds are repaid by the state, usually over a period of 20 years.

The board asked the 2007 Legislature to consider 14 building projects. All but three received varying amounts of state money.