North Dakota University System budget talks come with inflation concerns

GRAND FORKS — The North Dakota Board of Greater Schooling voted to approve a 2023-25 finances request, however not with out speak of how inflation will have an effect on the anticipated prices outlined by the board.

Board members accredited an working finances request of $680.1 million and a capital finances request of $252.7 million.

The finances request needs to be submitted to the North Dakota Legislature by August, mentioned David Krebsbach, vice chancellor for administrative affairs/CFO. Then, the NDUS finances is consolidated with finances requests from different state businesses, and from that, the governor places collectively a finances request primarily based on what every company submitted. When the Legislature meets in January 2023, representatives from the college system could have an opportunity to current the finances to the Legislature, which can make a remaining resolution on the finances in April 2023.

With the deadline to submit the finances request and the date will probably be accredited to this point aside, members of the board voiced their considerations concerning the request’s relevance with rising costs.

Board Member Jeffry Volk worries that college and employees salaries within the college system must be elevated to maintain up with inflation, and tuition and charges will in flip need to be elevated to make up the distinction within the finances, inflicting enrollment to drop. He says the board must ask the Legislature to fund these fund extra pay will increase as a result of inflation.

“We’ve a really unstable atmosphere coming proper now, and one of many issues we in all probability want to have interaction the Legislature in is stabilizing this technique proper now,” mentioned Volk.

Greater than a plan for simply the 2023-25 biennium, says Volk, the college system ought to have a plan with legislators and the governor’s workplace for a way the entities will work collectively by means of inflation, particularly with rising building prices for capital enhancements.

“Within the 2021-23 biennium we collectively, utterly missed the impact of inflation, and that’s not a dart at anyone. It occurred, proper?” mentioned Volk. “I feel there must be a robust effort to return and sort of make amends for what we didn’t know, what the legislators didn’t know and what we’ve skilled on this state.”

After an government session, the board renewed NDUS Chancellor Mark Hagerott’s contract for an extra two years, with a 2.7% wage enhance. Hagerott’s 2021-22 wage was $389,516, and a 2.7% enhance brings his pay to $400,033.

This was the primary yr that the chancellor’s overview was performed in an government session. Beforehand, the chancellor’s overview was performed in an open session, however state regulation modified to require the dialogue to be held in a non-public session, the identical as discussions about college presidents’ contracts.

“He’s getting the identical therapy that presidents are given, and I feel, significantly better as a result of I feel board members really feel extra open to creating solutions that may be helpful, but when not interpreted appropriately, may very well be dangerous,” mentioned Board Chair Casey Ryan.

Board members additionally accredited contracts for presidents within the college system after a second closed government session, and introduced that the SBHE has initiated a compensation research with the Affiliation of Governing Boards of Universities and Faculties to look at presidential salaries within the college system. Particulars of the presidents’ contracts and wage will increase weren’t obtainable on the assembly.