BISMARCK - Programs, employees, pay raises and a variety of other essential services would be on the chopping block at the University of North Dakota if lawmakers move forward with the higher education funding bill as it is.
University officials spoke Monday with the state Senate Appropriations Committee about House Bill 1003 - the higher education funding budget for 2015 to 2017.
The House changed the funding formula from the one approved during the last legislative session, which gives more money to universities with more completed student credit hours.
UND Vice President for Finance and Operations Alice Brekke said several factors could influence how bad of a budget deficit the university could face should the bill pass in its current form.
"Without an increase in the per credit funding amount, to fund the state share and of course depending on the assumptions that are made and knowing we would need an increase in the student share, the gap for UND could be as high as $29 million,” she said.
ADVERTISEMENT
If tuition is increased 3.8 percent, that deficit decreases to $17.2 million, Brekke said.
“At the end of the day we understand we must live within the resources available and will need to take actions accordingly,” Brekke said to the committee. “You have tough decisions to make.”
According to documents presented to the committee, the cost to cover increased health insurance premiums and salary increases averaging 3 percent during the 2015-2017 biennium is $18.9 million at UND. The school is asking the state cover 60 percent of the cost with $11.3 million while a tuition increase would cover the rest.
The school’s increasing utility cost is slated to total $6.9 million ,and the state’s share of that would be $4.2 million.
Within UND’s request, $22.3 million in appropriations were also sought for UND’s School of Medicine and Health Sciences that Dean Joshua Wynne said were already agreed upon during the last legislative session.
“The amount requested was approved last session, but because we didn’t need the funds until this biennium, we deferred it until the coming biennium,” he said.
UND President Robert Kelley spent most of his presentation detailing some of UND’s successes, including internal and external partnerships.
For example, Kelley said the School of Engineering and Mines is working together “more than ever” with the Energy and Environmental Research Center.
ADVERTISEMENT
“We have heard very clearly the expectation you have for University of North Dakota,” Kelley said to the committee. “I do believe the institution is moving in the direction you desire.”
Wynne also highlighted achievements, noting the medical school has made strides in lessening student debt while maintaining low tuition when compared regionally.
Wynne said average medical student graduates with $175,000 of debt, about $150,000 is due to their medical school education and $20,000 is from undergraduate studies.
Wynne said the numbers had improved in the last year with the RuralMed Program of student loan forgiveness for those who commit to working in rural areas for five years.
The new $124 million, 325,000-square-foot, four-story medicine and health sciences building that is currently under construction on UND’s campus will open during the summer of 2016.
“Most importantly the project is on time and on budget,” Wynne said.
