Interim Chancellor Reveals $800,000 Shortfall in North Dakota University System: What It Means for Students and the Future

FARGO — North Dakota’s higher education system is facing a familiar challenge. The board that oversees its colleges and universities is grappling with the financial aftermath of settlement agreements tied to departing presidents.

The State Board of Higher Education will meet to discuss its new budget. Interim Chancellor Brent Sanford is preparing to finalize funding for the next two years. However, it seems they’ll have less money than expected. This is partly due to an $800,000 reimbursement owed to Bismarck State College and Lake Region State College in Devils Lake.

These payments stem from Senate Bill 2003, which outlines funding for the university system. Sanford noted that lawmakers considered the settlement payouts to former presidents as “excessive.” He emphasized that this feedback has been taken seriously.

The settlements include about $550,000 for Doug Jensen, president of Bismarck State, who left in December. Doug Darling of Lake Region will retire soon with around $250,000. This isn’t the first time the board has faced this issue. The previous biennium saw a controversy when former North Dakota State University President Dean Bresciani was let go, costing the system $400,000.

To mitigate the financial strain, Sanford said they plan to manage their budget through attrition, avoiding layoffs. Mark Gorenflo, the chief of staff, and Jerry Rostad, vice chancellor of strategy, will retire, and their roles won’t be filled, helping to save costs.

The issue of severance payouts has wide-ranging implications. Many groups and individuals are concerned about how such agreements can strain university budgets. A recent study revealed that severe financial challenges could impact educational quality in the long run.

As the board navigates these complexities, Sanford is optimistic about higher education’s role in North Dakota’s future. He believes it’s essential for the higher education system to contribute effectively to the state’s workforce. Balancing financial responsibility and quality education will be crucial as they move forward.

In the end, the focus will be on finding solutions that benefit students and the community while maintaining fiscal discipline.



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