North Dakota college presidents plead for a response to Minnesota's free tuition plan

Jun. 27—VALLEY CITY, N.D. — Presidents from five of North Dakota's 11 colleges and universities are making a plea for the state to respond in kind to Minnesota's new program offering free tuition for some families.

The presidents, all from institutions on the eastern side of the state nearest Minnesota, appeared at the State Board of Higher Education meeting in Valley City on Tuesday, June 27.

At a time of continued declining enrollment, college officials fear the North Star Promise program passed by the Minnesota Legislature this spring will lure even more students who might otherwise have planned to attend schools in North Dakota.

The program will provide free tuition to students from Minnesota families with annual incomes of less than $80,000, with applications starting in fall of 2024.

North Dakota State University President David Cook said 52% of NDSU students come from Minnesota.

"This has catastrophic implications. This is a very serious situation for us," he told the board.

Mayville State University President Brian Van Horn said his school has 135 Minnesota students out of a total enrollment of 1,100. Of those, more than 100 could be impacted by the Minnesota initiative.

"How many of those could we retain? That's the big question," Van Horn said.

Cook asked for the issue to be brought to the interim Higher Education Committee, which meets regularly in between legislative sessions. He also suggested a special legislative session as a possibility.

"This is a big deal, and so I hope that that is even something that gets considered," Cook said.

Also in attendance were University of North Dakota President Andrew Armacost, North Dakota State College of Science President Rod Flanigan and Valley City State University President Alan LaFave.

House Majority Leader Mike Lefor, a Republican from Dickinson, said lawmakers are "acutely aware" of competition from other states, and that setting up universities for success is key to fueling North Dakota's workforce.

He said he hasn't been contacted by any of the college or university leaders but is open to hearing from them.

"I don't have a problem in the short term getting a group together to discuss it, but I think it's on higher education to put something on the table for us to look at," Lefor said.

A special session can be called by the governor, but legislative leaders could do so as well, as lawmakers used 75 of the body's allotted 80 days.

"The legislative branch can call itself back into session and have five days at its disposal if we feel the need to do so," Lefor said.

The North Star Promise program is expected to cost the state of Minnesota $117 million over the next two years, according to House and Senate fiscal analysis. In subsequent years, it would cost nearly $50 million per year.

In addition, every student attending Minnesota schools will benefit from a tuition freeze for the next two years, expected to save each student from $150 to $300 each year.

North Dakota lawmakers also addressed college affordability this past legislative session by freezing tuition and fees for the next two years, the first time that's happened in 28 years.

Without it, students would have seen a 4% tuition increase.

Rep. Bob Martinson, a Republican from Bismarck who sits on the Higher Education committee, said if a similar free tuition program like Minnesota's were passed in North Dakota, he fears people would take advantage of it.

For example, a person or persons in a household making $87,000 annually might simply decide to work fewer hours to get under the $80,000 threshold and get free tuition, Martinson said.

"We may just have to live with what we have, which would be very difficult for Fargo in particular," Martinson said, referring to NDSU's potential loss of Minnesota students.

NDSU stands to lose $6.5 million in combined tuition, fees and funding formula loss and UND would lose $4.6 million from the first year of the Minnesota North Star Promise, per estimates presented at the meeting.

SBHE Chair Casey Ryan suggested Cook and Armacost co-lead an effort to communicate with the Higher Education Committee and Gov. Doug Burgum's office, with assistance from North Dakota University System Chancellor Mark Hagerott.