State Board of Higher Education extends chancellor's contract

Jun. 28—VALLEY CITY — The North Dakota State Board of Higher Education voted to extend Chancellor Mark Hagerott's contract during its regular meeting on Tuesday.

The decision was made during an approximately two-hour-long executive session.

Under the agreement, Hagerott's contract will run from 2023-2025. He will receive a 6% raise to his current salary of $400,033.

The board approved a motion from board member Nick Hacker — who served in his final meeting as he is limited to two four year terms — to review compensation for all presidents within the North Dakota University System no later than one calendar year from the date of the motion. If this does not occur, equity pay adjustments for the NDUS' vice chancellors and chief of staff will be rescinded per Hacker's motion.

Hacker said he believes some presidents are under-compensated, and that the state board has neglected to address this.

"We've kicked this can down the road for far too long," he said. "This isn't against our vice chancellors — I believe they do phenomenal work. But when our leadership turns around and says 'let's give equity adjustments to our systems staff,' and we're not taking care of our own leadership on our campuses, I feel that's wrong."

The board also approved a memorandum of understanding to continue a tuition reciprocity agreement with institutions of higher learning in Minnesota.

Under the agreement, students from North Dakota are eligible to pay resident tuition rates at Minnesota schools. Undergraduate students from Minnesota attending North Dakota schools will pay 12% above resident rates, and graduate students 27% above resident rates.

Board member Kevin Black expressed concern that the policy would disincentivize students from Minnesota from attending North Dakota schools.

"I'm assuming when these rates and policy were set, times were much different," he said. "Now we're in a very significant battle for human capital. I really question the wisdom of a policy that would disincentivize students — whether they're from Minnesota, South Dakota or Montana."

David Krebsbach, vice chancellor for administrative affairs at the NDUS, said the rate for Minnesota students is lower than that charged for other out-of-state students. He also said NDUS institutions have the flexibility to charge varying rates of tuition, as well as terminate the agreement with 30 days notice.

Board Chair Dr. Casey Ryan said under the terms of the agreement, the state of Minnesota has been appropriating $8.5 million annually to North Dakota, distributed among the NDUS institutions.

Hacker added that the agreement serves as a subsidy to keep tuition lower.

"By not doing this, we would technically be pushing tuition up on Minnesota students, because we take more Minnesota students in than we send out," he said.

In other news from the state board:

* Darin King, vice chancellor for information technology/chief information officer for the NDUS, said the implementation of the body's ban on accessing TikTok via university networks has run according to plan.

* The board formed a task force to be led by UND President Andrew Armacost and NDSU President David Cook to examine potential impacts of the North Star Promise free college tuition initiative. Board members and university presidents expressed concern that the initiative — which would offer free tuition for certain students who commit to work in Minnesota upon graduation — may have an adverse impact on NDUS institutions' enrollment.