ND Higher Education Challenge Fund Meeting
June 16, 2014
Governor’s Conference Room
Conference Call in Number: 888-346-3559, Passcode: 58503
Present: Rick Burgum, Rep. Bob Martinson, Kathy Neset, Rep. Mark Dosch, Lt. Governor Wrigley, Senator Karen Krebsbach,
Meeting called to order at 9:36 a.m.
Burgum moved approval of minutes, Martinson Seconded. Motion carried.
University of North Dakota
Collaborative Energy Center. UND is requesting a match for $2.5 million for the Collaborative Energy Center. This will go towards a Hess innovation lab, a 3D lab, a service company lab and the history curriculum. Total project is 14 million dollars. Other private gifts will be contributing to the remaining amount.
Rep. Dosch asked if this project would start before raising all funds? Kelly stated that the total amount would be raised before starting. There are additional naming opportunities that are available to raise the money privately to fund the construction of the building.
Neset asked how this fits into the entire plan of the department. This is a new department that is growing fast and how does it compare to other programs across the country. Kelly said that the College of Engineering and Mines has a number of departments. When the Herald Hamm donation was given, there was an opportunity to further develop the College of Engineering and Mines with specific emphasis on geology. The building that is proposed today is designed to connect the program with all sources of energy, including research.
Rep. Martinson moved for approval. Neset seconded. Motion carried.
North Dakota State College of Science
Construction & Design Technology Program Endowed Fund. Richmond said this is in the area of land surveying.
Lt. Governor asked for the breakdown of the funds. Brad Barth, NDSCS Foundation Director, explained that it will vary from year-to-year according the needs and the demands of industry. One year the industry may want assistance with targeted recruiting, and other years they may need more training for instructors.
This project does have scope approval.
Burgum stated that he thinks this application is veering from the intent of the legislation. He recognizes that scope approval has been granted.
Neset asked about the accountability to the funds. Effertz explained there are the quarterly reports and the NDUS office is auditing all activity of the foundations and campuses associated with Challenge Funds. Neset clarified that if there are 3 allowable uses of funds for the project, will the committee know the breakdown of funding within the allowable uses.
Kelly stated that foundations are audited by the state and a third party for both programmatic and financial reasons. The breakdown of the use of funds is reported in these audits.
Neset requested to see the internal audit reporting. Lt. Governor stated there will be further research on the audit process and how the committee can receive additional reporting.
Neset moved for approval. Martinson seconded. Motion carried.
C&S Farms Chris & Suzanne Johnson Agriculture Endowment. The earnings of this endowment will go towards an agriculture student that is from a rural community that has a 3.0 GPA after the first semester of college. Burgum moved for approval, Sen. Krebsbach seconded. Motion carried.
LL(Swede) & Ione Johnson Endowment Scholarship. This is an endowment intended for a scholarship for a diesel technology student who maintains a 2.0 GPA. There were questions from the committee regarding the lower GPA requirement. Barth explained that this donor is a former instructor and felt strongly that there were a number of good students at the 2.0 level that need financial assistance.
Burgum moved approval, Sen. Krebsbach seconded. Motion carried.
Scope Approval
North Dakota State College of Science
Skills Development Project. This is a project for new Americans and underemployed individuals with Processional assessment of personal needs and goals. This is not an endowed program.
Lt. Governor questioned the list of potential donors and what would qualify for matching funds and what would be eligible for the foundation.
Martinson suggested that we approve the scope and wait for the application to determine if the funders would be qualifying match entities.
Lt. Governor reminded the committee that public funds are not eligible for match and wanted to know the source of the funds that Lutheran Social Services would be providing.
Barth stated that the intent of the project is for training skills of language, job and soft skills. It may be skill specific as well.
Burgum is supportive of the project itself. He asked how long the program is intended to last.
Barth stated that the Otto Bremer Foundation grant is a 2 year grant. This is delivered in the Skills & Technology Center in Fargo and is classroom based. The additional match dollars will allow them to train more students.
Martinson moved for scope approval, excluding the public funding sources. Seconded by Burgum. Motion carried.
NDSCS Facilities Marketing Initiative. This is an upgrade project going from traditional signs to electronic signs. This is a $45,000 project.
Burgum stated that he would have trouble supporting this project.
Burgum moved to decline. Krebsbach seconded. Motion carried.
Burgum requested a status sheet of the campuses. Effertz will send out the summary sheet of each campus to the committee.
Burgum requested to have a discussion of the future of this program for next legislative session including the language detailing the requirements of the program.
Martinson asked Burgum of how to differentiate the research institutions from the others.
Burgum suggested for discussion a dollar for dollar match for the smaller schools because they do not have the infrastructure to raise the money. He thinks we should keep the focus of the overall program very narrow, specifically when the funds are dedicated to buildings.
Discussion was held about holding meetings via video conferencing.
Lt. Governor stated that the in-person component has been very helpful, providing broader understanding of permissible match parameters, and ensuring campus accountability.
Sen. Krebsbach stated that when there is discussion about continued guidelines, could there be interviews of each of the campuses and foundations to know their recommendations. Lt. Governor agreed.
Meeting adjourned at 10:49am.
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