College costs compared to national figures

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North Dakota college students pay a larger portion of college costs than the national average, according to a recent report.

The Delta Cost Project released a report in January on trends in college costs. The report gives a national and state-by-state glimpse at college costs. Institutions are grouped by Carnegie classification and whether private or public.

The report looked at trends in revenue, expenses and student costs for public research, masters and community college institutions and for private research, master's and bachelor's institutions.

For public research institutions, students in 2006 paid 60 percent of higher education costs, compared to 51 percent nationally, according to the report analysis. A North Dakota University System report, "Financing Public Higher Education: How Does North Dakota Compare," puts the student share of costs in all institutions at 44.9 percent, compared to 36.1 percent. It was an increase from 31.7 percent in 1997-98.

Locally, students at Bismarck State College pay about half the cost of the community college. From 2004-05 to 2007-08, the student share of costs has increased from 50 percent to 52 percent.

"We try and keep those costs as low as possible," BSC Executive Vice President Dave Clark said.

College costs can be placed in eight categories, including instruction, academic support, student services and operation and maintenance. Institutions pay for these costs through student tuition and fees, investments, endowments, grants, gifts, state appropriations, federal appropriations and auxiliary enterprises, such as campus bookstores.

Although North Dakota college students pay a greater percentage of college costs than average, they pay less than the national average in tuition. The average tuition in North Dakota is $6,748 per student, compared to a national average of $6,909 per student.

Unlike four-year institutions, community college students in North Dakota are paying more than the national average. Two-year college students are paying 131 percent of the national average, according to the North Dakota University System report. Tuition and fees at BSC average $3,773 compared to $2,737 nationally, according to a report by BSC to the state Senate Appropriations Committee in January.

A short-term remedy could be a tuition freeze for two years at community colleges in exchange for more state money.

The average state subsidy also is less than the national average. North Dakota's state subsidy is about $2,276 less than the national average of $7,149. How state subsidies are divvied up among the schools varies from state to state. For the 2006-07 school year, the NDUS report showed an average state appropriation of $4,726 per full-time student or equivalent, compared to a national average of $6,718.

The ratio of student costs to state subsidy is out of balance with the state's goal of a 75 percent state to 25 percent student cost sharing. The goal is part of the NDUS long-term finance plan.

Budgets for higher education in North Dakota have increased 10.8 percent from fiscal year 2003 to fiscal year 2007. During the same period, the state subsidy per student decreased 33 percent. Institutions receive money based on parity and equity, Clark said. Parity covers operational expenses and equity is based on funding at 50 percent of funding at peer institutions.

The state's funding formula is not able to keep up with increased enrollments at some of the NDUScampuses. Every institution receives a base amount to cover operational expenses, but it is not based on enrollment, Clark said.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@;bismarcktribune.com.)

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