The North Dakota House Appropriations Committee convened on March 11, 2025, to discuss the budgetary needs and funding requests for the North Dakota University System (NDUS) for the upcoming biennium. The meeting, which lasted from 7:55 AM to 11:40 AM, covered a range of topics including funding formulas, salary increases, and capital projects.

The session began with a report on capital building funds, highlighting a transfer of authority from operations to capital lines for institutions that had completed necessary adjustments. The state auditor's report indicated no findings, providing a clean slate for the committee's discussions.

The committee reviewed the NDUS's budget request, which totaled approximately $2.8 billion. This included $810 million in general funds, $698 million from tuition, and $1.3 billion from other sources. A significant portion of the budget is allocated to the funding formula, which is designed to distribute resources based on student credit hours produced by each institution.

A key point of discussion was the funding formula's averaging method, which has raised concerns among committee members. Some representatives expressed confusion and frustration over how the averaging impacts funding for individual institutions, particularly those that may be penalized despite increased credit production. The committee acknowledged the need for further clarification on this issue as discussions progressed.

The budget proposal also included a request for a 3.3% salary increase for staff, which was part of a broader compensation package. The committee examined various funding initiatives, including support for nursing education, high-performance computing, and student financial aid programs. Notably, the Nursing Education Consortium received a request for an additional $2 million, while the AI and machine learning initiative sought $3 million.

The committee also addressed capital projects, with requests totaling over $121 million for various campus improvements. However, many of these projects were not funded in the Senate's version of the bill. The discussion highlighted the prioritization process for capital requests, emphasizing that life safety projects are ranked higher than others.

In conclusion, the meeting underscored the complexities of funding allocation within the NDUS and the ongoing challenges faced by institutions in securing necessary resources. The committee plans to continue discussions on these topics, with a focus on refining the funding formula and addressing the needs of all institutions within the system. Further meetings will be scheduled to ensure comprehensive review and consideration of all budgetary requests.