The Education and Environment Division spent the later portion of its Feb. 11 meeting reviewing long‑sheet budget proposals for the North Dakota University System Office and the system's institutions, discussed a proposed 11‑member study of the higher‑education funding formula, and considered — then rejected — an amendment to allow two private colleges to receive challenge‑grant funds.

Committee staff reviewed the system office long sheet and the institutions' long sheets dated Feb. 11. The discussion covered ongoing items (salary, health insurance, FTE adjustments), one‑time requests (dual‑credit scholarships, challenge grants, Dakota Digital Academy and a professional student exchange program), and capital requests across campuses. The long sheet noted the Bank of North Dakota profits as a funding source for $1.5 million in dual‑credit scholarships and a proposed transfer of SIF (Strategic Investment Fund) dollars for challenge grants.

Chair members discussed creating a formal, legislatively constituted study to do a deep dive on higher‑education funding. The chair proposed a shall‑study composed of seven legislators (three senators, three representatives and a chairman appointed by Legislative Management) plus five non‑voting institutional vice‑presidents to advise on finance and capital distribution. Senator Scheibaly suggested specifying geographic and institutional representation (e.g., NDSU and UND plus regionals and two‑year institutions) to ensure balanced input.

On challenge grants, Senator Connelly moved an amendment to authorize awards to the University of Jamestown and the University of Mary; that amendment was seconded for discussion but the committee voted it down on a roll call.

Specific items discussed or tentatively approved on the long sheets included:
- System office: adding funding for student financial assistance system maintenance and operations ($205,000 biennial option presented by staff with a $25,000 one‑time implementation option if hosted centrally by CTS), $2 million for increased need‑based grants (to expand eligibility to new state residents), and $1.5 million one‑time dual‑credit scholarship funding from Bank of North Dakota profits.
- Institutions: multiple one‑time capital requests and programming asks across NDSU, UND, Minot State, Bismarck State, Mayville State, Dickinson State, Lake Region, Valley City and Williston; the committee discussed placeholders rather than final allocations and directed staff to return with an updated, consolidated funding sheet.
- UND: the committee discussed authorization to sell two parcels of land (approximately 3 acres and 20 acres) and asked for appraised values before final action; Senator Meyer agreed to obtain appraisals by the next committee meeting.
- UND Medical School: program‑operation request of $2 million ongoing for mobile simulation/van services (SIMND) was on the table as an operational request.

Committee members emphasized they were working toward an overall fiscal target and would balance requests across institutions. The chair asked members to review institution requests and return with prioritization; staff will update long sheets and draft a study proposal to be finalized by legislative management.

Ending: The committee rejected the Jamestown/Mary amendment for challenge grants and asked staff to return with revised long sheets and a draft study charge and membership for a higher‑education funding study to be considered at a subsequent meeting.