Changes in 03-05 state general fund appropriations

• The NDUS appropriation (excluding Ag Extension and Research Centers) dropped from 21.0% in 01-03 to 20.1% in 03-05 of the state’s general fund budget. This nearly one percent reduction is equivalent to a loss of $16 million. In 1981-83, over 24% of the state’s general fund budget was dedicated to higher education. Based on total 03-05 state general fund spending, the NDUS would have almost $75 million more in funding today if it received 24.2% of the budget as it did in 81-83.

• No new funding was provided to cover the state’s share of operating cost and utility inflation; operating and utility costs for new facilities; continuation of legislatively funded salary increases for 02-03; and 03-05 employee health insurance cost increases. The total cost of these items, including the state’s share, was almost $17 million.

• No new funding was provided to cover the state’s share of the cost of 03-05 employee salary increases. Estimated total cost for an annual increase of two percent per year is $10 million, including state share.

• Across-the-board reductions of $5.8 million were made to base campus operations in the final legislative appropriations.

• Reductions of $1.4 million were made to campus and system information technology budgets in the final legislative appropriation.

• New funding provided by the legislature was targeted at specific initiatives or projects and was not available for general base operations (general operating, utilities, health insurance and employee compensation adjustments).



Other Factors Influencing Rate Increases

• More students to serve. Fall 2004 enrollments increased by over 2,000 students over Fall 2003. Systemwide enrollments, both headcount and full-time equivalent, are at an all time high.

• Increasing demand for electronic access, resulting in increased technology costs. Over 6,000 headcount students were enrolled in E-learning courses (e.g. video, internet) in 2002-03, an increase of almost 14% between the 2001-02 and 2002-03 academic years.



How Do We Compare?

• In 2002-03, tuition and fees at all NDUS institutions, except the 2-year campuses, were between $586-$790 or 14-22% less than their regional counterparts. The average NDUS 2-year campus rate was $129 or 6% more than the regional average.

• Tuition and fees in 2002-03, as a percentage of median ND household income, was comparable to, or less than, the regional average, except at the 2-year campuses where a larger proportion of median income was consumed by tuition and fees in ND, than in the region.

• ND’s average four-year tuition and fee rate increases (1999-00 to 2003-04), by type of institution (research, 4-year and 2-year), was less than or similar to the midwest average increase, based on data provided by the Midwest Higher Education Compact (dated 1-29-04) as follows: