University system to seek big state spending increase

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BOTTINEAU - North Dakota's 11 public colleges and universities will seek a 53 percent spending increase from the Legislature for the next two-year budget period. At least one member of the state Board of Higher Education wonders if even that will be enough.

The board on Thursday approved the budget request, which also seeks to limit tuition increases for students, boost pay for college faculty and staff, and provide tens of millions of dollars for security improvements and deferred maintenance on campuses. State lawmakers next year will have the final say on the proposal.

University System Chancellor Bill Goetz said the budget request sends a message about the need to address long-term such matters as keeping college affordable for students and ensuring that schools can compete in the marketplace for instructors.

"The budget, as we look at it, is more than just numbers," he said.

The university system's current budget for its permanent operations - salaries, operating costs and other ongoing expenses - and one-time projects totals $477.4 million. The proposed new spending would raise the figure to $729.2 million, a 52.7 percent jump over two years.

"Is it enough?" board member Sue Andrews wondered.

Replied Goetz: "The answer is, depends on who you ask. You ask the presidents, campuses, obviously we can use more resources."

Laura Glatt, the university system's vice chancellor for administrative affairs, said there was a 19 percent increase from fiscal 2007 to 2008 in state operating expense appropriations. She called it an important first step.

"The bad news … is it has to continue because we're coming off several years where that was not the case," Glatt said.

The budget request includes 7 percent yearly pay increases for faculty and staff. North Dakota State University professor Thomas Barnhart, the board's faculty representative, said the proposed increase would enable institutions to better compete for faculty, bring employees closer to regional pay averages and help reduce turnover.

"Over the past five years, staff have identified low salary as the major factor influencing their decision to leave the North Dakota University System," he said.

Barnhart said North Dakota faculty salaries rank last among states while North Dakota ranks 31st in both cost of living and average per capita income.

"As faculty, a big goal for us is to be 31st" in pay, he said.

If enrollment remains stable, the budget plan would impose a two-year freeze on tuition rates at two-year colleges and would limit annual tuition increases at the state's four-year schools to 4 percent. Both measures would take effect in the fall of 2009.

Board members and others said keeping a college education affordable in North Dakota is a big worry.

"There is strong evidence that students are having to borrow more" to pay for their education, said Peggy Wipf, director of financial aid for the university system.

College presidents who attended the Board of Higher Education meeting offered support for the overall budget request.

"There's nothing in this budget that we think is unimportant," said Valley City State President Ellen Chaffee, who is retiring after 15 years. "It's not the full meal deal, but it's a whole lot better than what I've seen."

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