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Online out-of-state students bring formula impact and revenue but raise accountability questions
Summary
Commissioner Sanford and campus leaders reported that remote nonresident (online out-of-state) credits widened the funding base and, after exclusions and formula runs, produced a roughly $22 million impact in the formula; UND and Bismarck State described industry-sponsored and military-affiliated online students as revenue sources that sustain programs, while legislators asked for clearer data and the campus-level program breakdowns.
Brent Sanford, the Commissioner of Higher Education, presented enrollment breakdowns and introduced the committee’s deeper look at online out-of-state students (OSOS). He said North Dakota’s headcount was 47,522 (36,150 FTE) and that dual-credit, part-time and online students drive divergence between headcount and FTE. Sanford and system staff described methodological choices for isolating OSOS students (excluding contiguous states on the assumption that many contiguous-state students become residents) and reported that applying that methodology to biennial credits and plugging the result into the funding formula yielded a roughly $22,000,000 amount that would be associated with remote nonresident credit production under the formula.
Dan Longane,…
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