A Board of Higher Education advisory panel is backing a 5 percent limit on North Dakota's college tuition increases next year, along with a 5 percent pay raise for university system employees.

The state's 11 public colleges have not set their tuition rates for the next academic year, and some still may ask permission to charge higher rates, said Laura Glatt, the university system's vice chancellor for administrative affairs. She said colleges also have permission to raise tuition by smaller amounts if they choose.

The board's Budget and Finance Committee on Monday reviewed recommendations to keep tuition increases at a maximum of 5 percent for the 2007-08 academic year, and to endorse 5 percent pay increases during the period.

The committee includes three board members. The full board, which has eight voting members, will be discussing the issue Thursday during the board's next meeting in Wahpeton.

The North Dakota Legislature included the 5 percent tuition increase cap in the state university system's budget bill for the next two years.

If any college wishes to charge higher rates, it must seek permission from the Legislature's Budget Section, an interim committee that includes members of the North Dakota House and Senate appropriations committees.

The North Dakota Legislature, which finished its session last week, included money in the university system budget for 5 percent annual pay increases for college workers for each of the next two years. The university system's state general fund support is rising by $81.1 million over two years to $468.3 million, an increase of 21 percent.

Gov. John Hoeven signed the university system's spending bill Monday during a ceremony at Minot State University.

"This legislation, which includes a range of new grant, assistance and savings programs for students and families, will help hold the line on tuition increases and keep the cost of a college education in North Dakota affordable," the governor said.