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State Board recommends preserving predictability, adding incentives for private partnerships
Summary
Kevin Black, chair of the State Board of Higher Education, told the committee the board completed a 2024 internal study and supports predictability through the formula, while recommending adjustments — including removing averaging, protecting growing institutions, and developing incentives to leverage private investment in programs
BISMARCK — Kevin Black, chair of the North Dakota State Board of Higher Education, briefed the committee on the board’s 2024 internal study of the funding formula and offered recommendations the board has already shared with legislators. Black emphasized predictability and said the formula provides a stable base so institutions can plan year-to-year. The board’s review concluded there is “tremendous wisdom in the formula” for predictability and alignment with program costs, but the board also identified areas for improvement. Major points the board raised: remove or replace the averaging function to avoid harming individual campuses; protect growing institutions from funding declines by treating incremental credits differently; revisit program weightings to align funding with workforce needs; and consider “incentive levers” within the formula that would encourage institutional participation in public–private partnerships (the board suggested bonus weighting in exchange for private match or industry commitments). Black also asked the committee to consider clearer criteria for capital prioritization and to support the continuation of one-time workforce innovation grants that the 2025 legislature funded (the board cited $10 million for workforce education innovation grants across nine institutions, plus $16 million each for NDSU and UND initiatives in the same appropriation cycle). Why it matters: The board framed its suggestions as policy-level alignments between legislative priorities (workforce outcomes, return on state investment) and the mechanics of the funding formula. The board offered to provide additional materials and said board members intend to sharpen their system strategic plan after a recent retreat. Ending: Black said the board will continue to engage the committee, share worked examples and return with more specific criteria for capital and formula priorities.
