North Dakota's Board of Higher Education may seek a 53 percent spending increase from the Legislature during the state's next two-year budget period, board members say.
The request includes 7 percent yearly pay increases for college faculty and staff. If enrollment remains stable and North Dakota's colleges get the money they are seeking, the budget plan would limit annual tuition increases at the state's four-year colleges to 4 percent.
The proposal would impose a two-year freeze on tuition rates at North Dakota's five two-year colleges. Both the 4 percent tuition cap and the freeze for two-year schools would take effect in the fall of 2009.
University system officials say the state's two-year colleges in Williston, Devils Lake, Wahpeton, Bismarck and Bottineau already are more expensive than others in the region.
The blueprint suggests raising the North Dakota university system's state general fund support for its permanent budget from $441.5 million to $557.4 million, an increase of 26.3 percent over two years. The permanent budget includes salaries, operating costs and other ongoing expenses.
The plan also asks for $135.9 million for one-time projects, including $20.6 million in security improvements and $54 million for deferred maintenance. For the current two-year budget period, the Legislature provided about $36 million for one-time expenditures.
The university system's current budget for its permanent operations and one-time projects is $477.4 million. The plan's proposed new spending would raise that sum to $729.2 million, which is a 52.7 percent rise over two years.
The board's budget, audit and finance committee endorsed the proposal during a telephone conference call meeting Monday. It will be considered later by the full Board of Higher Education.
In addition, the budget plan includes $18.6 million for agricultural research and North Dakota State University's extension service. The university system and the Legislature both keep separate accounts for the extension service.
The proposed sums would take a healthy chunk of the state treasury's budget surplus and reserves, which could add up to more than $600 million by June 2009. The amount includes a $200 million fund that is supposed to be reserved for budgetary hard times.
Last year, the Legislature approved a 21 percent general fund spending increase for North Dakota's university system.
The increase was good for the current 2007-09 budget period, which ends June 30, 2009. Tuition increases at the system's 11 colleges were limited to 5 percent each year.
Posted in State-and-regional on Monday, March 24, 2008 7:00 pm Updated: 2:18 pm.
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