Approved on May 27, 2015

ND Higher Education Challenge Fund Meeting Agenda

January 5, 20151 - 5 p.m.

Governor’s Conference Room

Conference Call Number:888-346-3659

Participant Passcode:58505

Present: Lieutenant Governor Drew Wrigley, Representative Bob Martinson, Rick Burgum, Senator Joan Heckaman, Kathleen Neset, Terry Hjelmstad, Connie Nicholas and Senator Karen Krebsbach

Lt. Gov. Drew Wrigley called the meeting to order at 1:04 p.m.

The Lt. Gov. asked committee members, presidents, and foundation directors if there were any questions about the meeting minutes from Dec. 17, 2014. Rick Burgum moved to approve the meeting minutes, Terry Hjelmstad seconded. Motion carried.

Committee Business

Summary of Funds Approved to Date

The Lt. Gov. reviewed the document and asked the committee if there were any questions or comments regarding the information provided in their materials. There were none.

Summary of Scope Approved to Date

The Lt. Gov. asked the committee if there were any questions or comments regarding the information provided in their materials and there were none.

Competitive Round

The Lt. Gov. praised the committee for their assistance in making the Challenge Fund program such a success. He then proceeded to outline the process for approving applications for funding during the competitive funding round. During the competitive the committee should:

  • Go through each application.
  • Score each application on a worksheet provided to each committee member.

Rep. Bob Martinson asked if the committee could just award the schools funding up to their maximum allotted funds. Kathy Neset stated that some schools hadalready reached their match goal of either $10M or $1M. Rep. Martinson expressed a concern that some of the funding applications for scholarshipsdidn’t seem legitimate. The Lt. Gov. stated that 1) all applications will be audited, and 2) the foundations are on the hook if they were to misrepresent their applications.The Lt. Gov. stated that he believes the committee has to trust the schools just as they have donein every other Challenge Fund meeting.

Rep. Martinson recommended keeping $100,000-200,000 for the committee’s own auditing purposes. The Lt. Gov. didn’t believe that the committee had the ability to do that.

Sen. Joan Heckaman stated that she thought the committee’s job was to award funds with discretion, not to withhold funds. She also asked how far ahead a school could have funds pledged. It was confirmed that the answer was seven years.

Nesetresponded to Rep. Martinson’s suggestion by saying that ultimately the schools are the ones responsible for auditing.

The Lt. Gov. continued with the discussion about how funding would be approved during the competitive round. During the competitive round:

  • The schools that were ranked highly on the worksheet would then be ranked again.
  • The schools that ranked the highest would have the opportunity to be awarded funds.

Burgum didn’t think it would be possible to rank one scholarship over others of similar merit. He then suggested the committee go through the regular round first before moving forward with how the competitive funding round would operate.

Rep. Martinson moved to consider the requests of schools that had met their allotted maximum in the order thatthe applications were accepted, Connie Nicholas seconded.

Burgumthought the committee was changing the pre-established guidelines with Rep. Martinson’s motion. The Lt. Gov. stated that the committee would have to decide how to break a tie between the schools, if one should occur.Rep. Martinson’s motion carried.

REGULAR FUNDING ROUND

Application for Funding

Williston State College

President Raymond Nadolny presented the application for WSC’sScience Addition. Neset asked for clarification on whether or notthe application was for capital construction. Pres. Nadolny clarified that the funds would be used to build new laboratories and classrooms, along with the purchase of lab equipment. Neset moved to approve the application, Burgum seconded. Motion carried.

Pres. Nadolny presented the application for the TrainND-Workforce Training Center. Burgum moved to approve the application, Hjelmstad seconded. Motion carried.

Dakota College at Bottineau

Dean Ken Grosz presented the application for the Endowed Scholarship Program. Burgum moved to approve the application, Rep. Martinson seconded. Motion carried. The Lt. Gov. asked Dean Grosz if this application was part of an over-arching fundraising campaign and Dean Grosz confirmed that it was.

Dickinson State University

President D.C. Coston presented 15 applications for funding to the committee. The applications were for the:

Agnes KuklaBurian Memorial Scholarship

Steve Burian Memorial Scholarship

Edward H. and Rozie Schwartz Endowed Scholarship

Hazel and Kelly Jorgenson Scholarship

John and Alice Travers TR Endowed Scholarship

Douglas J. Jaeger Memorial Basketball Scholarship

Celebrate the Arts Scholarship

Engel-Kesting Endowment Scholarship

ArlanHofland Scholarship

James Stanton Scholarship

Teach Well-Educational Scholarship

Dan and Carla Porter

Janae’s Way at DSU

Rick Enderud Rodeo Scholarship

Winn Construction Endowment Scholarship

Rep. Martinson moved for approval of all 15 applications, once again with the understanding thatno funds would be awarded by North Dakota University System until the committee is satisfied with the stability of the DSU Foundation, Nicholas seconded.

Burgum asked if a scholarship could be tailored to one individual as specifically as was the case in the Steve Burian Memorial Scholarship.The scholarship would give priority to new DSU students who are employed by Hilltop Home of Comfort in Killdeer and are pursuing either an associate of applied science or a bachelor of science in nursing. Rep. Martinson said that the schools could do that and used Williston State College as an example. Pres. Coston clarified that the scholarship was an endowment and would be offered to many students with varying backgrounds in the future.

Rep. Martinson’s motion to approve all 15 of DSU’s applications carried.

Burgum asked when the committee would receive an update regarding DSU’s receivership status. Pres. Coston said that they have a report that could be made available. The Lt. Gov. said he would like a presentation to be made in writing and in person to the committee on the status of DSU’s receivershipsome time soon.

North Dakota State University

PresidentDean Bresciani briefly presented NDSU’s seven applications for funding. The applications were for the:

Ron and Sue Nichols Agriculture Scholarship

Ron and Sue Nichols HD and E Scholarship

Bradley J. Burgum Scholarship

Endowed Chair of Potato Pathology

Center for Risk and Trade

Helmsley American Indian Public Health Scholarship

Ross Keller College of Business Endowment

Neset asked for a more detailed explanation of the Center for Risk and Trade. Pres. Bresciani explained the finer details pertaining to that application.

Hjelmstad moved for approval, Sen. Heckaman seconded. Motion carried.

Mayville State University

President Gary Hagenbriefly presented the three applications MSU submitted. The applications were for the:

125th Anniversary Academic Excellence Annual Scholarship

125th Anniversary Foundation for Educational Excellence Campaign

Rural Nursing Excellence Online RN to BSN Program

Burgum moved to approve all three applications, Neset seconded. Motion carried.

Lake Region State College

President Doug Darling briefly presented LRSC’s three applications for funding. Pres. Darling described the LRSC Auditorium/Lecture Bowl Technology application in more detail as was requested when the application was given scope approval on Nov. 17, 2014. He noted that the funding would be used to equip the auditorium with technology that would allow for events and academic courses to be held in the space.

Sen. Heckaman moved to approve all three applications, Rep. Martinson seconded.

Burgum asked for more clarification on what LRSC means by program support in the application for the LRSC Auditorium/Lecture Bowl. Pres. Darling confirmed that the term“program support” was referring to equipment that would be used for concerts and plays, as well as for classroom work.

Sen. Heckaman’s motion carried.

COMPETITIVE FUNDING ROUND

Burgum moved to rescind Bob’s earlier motion to consider the requests of schools that had met their allotted maximum in the order that the applications were accepted, Neset seconded. Motion carried.

The Lt. Gov. called a brief recess, stating that the meeting begin again at 2:30 p.m.

Application for Funding

Minot State University

President Steven Shirley presented the 15 applications for match funding MiSU submitted. The applications submitted were the:

Minot State University Alumni Scholarship Endowment

Tom and Mary Probst Scholarship Endowment

Emma L. Misner Nursing Scholarship Endowment

E. James McIntyre Scholarship Endowment

Anonymous Scholarship Endowment

Cole Altringer Scholarship Endowment

Minot Symphony Association Scholarship Endowment/Minot State University Summer Theatre Scholarship Endowment

Jim and Karen Jensen Nursing Scholarship Endowment Fund

Bert Leidholt Athletic Scholarship Endowment

Don and Joyce Anderson Scholarship Endowment Fund

Douglas J. Jaeger Memorial Basketball Scholarship Endowment

Mary Lou Soukup Excellence in Music Education Scholarship

John and Leslie Coughlin Scholarship Endowment

William N. “Skip” Shirley Memorial Nursing Scholarship Endowment

Northwest Center for the Arts

Pres. Shirley suggested that an option for awards during the competitive funding round would be for the committee to approve all endowed scholarship applications for each school that had applied. The dollars remaining in the competitive funding pool would then be applied toMiSU’s applicationfor the Northwest Center for the Arts.This suggestion would bring the total dollars approved by the committee to $29 million.

The committee agreed that they would consider that option.

The Lt. Gov. asked for clarification on the Minot Symphony Association Scholarship Endowment/Minot State University Summer Theatre Scholarship Endowment. He wanted confirmation that the application was for one donation split into two endowments.Pres. Shirley confirmed that that was in fact the intention of the application. The Lt. Gov. asked if the committee had any questions on applications 1-14. There were none.

Rep. Martinson moved to approve applications 1-14, Sen. Krebsbach seconded. Motion carried.

Valley City State University

President Tisa Mason briefly presented VCSU’s eight applications for funding.

Endowed Scholarship Campaign

Lindstrom-McGregor Scholarship

Gerald Norberg and Dean Hall Elementary Education Scholarship, Lenora (Bartz) Jenson and Bruce Johnson Memorial Scholarship, Patricia E. Lundberg Elementary Education Scholarship and Jack and Jan Fuller Scholarship IMO James Lade

Steven Welken Memorial Scholarship, JLG Architects Scholarship Endowment Fund and the Sharon Clancy Memorial Scholarship Fund

The Psychology Scholar Award, Alex Lowe Peterson Memorial Theatre Scholarship and the Harry O. Pearce Scholarship

Mary Arendes Scholarship, Dr. Alvin E. Home Memorial Scholarship and Elane F. McCarriar Memorial Scholarship

Nyle and Arlene Burchill Scholarship, Kunnandi Sophomore Scholarship, Simonson Family Scholarship, Ken and Linda Astrup Endowed Scholarship and General Student Scholarship

Schilling Family Scholarship and the Wilma Nelson Trust Scholarship

Burgum moved to approve all eight applications for funding, Neset seconded. Motion carried.

University of North Dakota

The applications submitted by UND were not reviewed by the committee because there were no funds left in their competitive funding pool.

North Dakota State College of Science

President John Richman briefly presented each of the four applications submitted by NDSCS to the committee. Those applications were the:

Aldevron Scholarship and Training Funds

Halvor and OrmaNesheim Scholarship Fund

CASE/IH Program Fund

Komatsu Diesel Program Fund

Neset moved to approve all four applications, Burgum seconded. Motion carried.

Bismarck State College

Interim President Dave Clark and BSC Foundation Executive Director Gordon Binek presented one application for $131,524.10. The funds would be used to support endowed scholarships.

Rep. Martinson moved to approve the application, Neset seconded. Motion carried.

Lake Region State College

Pres. Darling briefly presented all three of LRSC’s applications for funding. The applications were the:

LRSC Nursing Education

LRSC Academic Library Support and Curriculum Development

Technical Center Campaign II

Sen. Heckaman moved to approve all three applications, Sen. Krebsbach seconded. Motion carried.

Rep. Martinson moved to approve the remaining balance in the competitive funding pool to go to MiSU for their Northwest Center for the Arts. Burgum seconded. Motion carried.

Meeting adjourned at 3:00 p.m.