FARGO — The board overseeing North Dakota higher education has approved salary increases for seven of its college and university presidents, along with a budget for the next biennium, at a time when it faces many financial challenges.
The moves come just days after Brent Sanford, the North Dakota University System’s interim chancellor, acknowledged an $800,000 budget hit from separation agreements previously made with two departing presidents.
At its Thursday, June 26, meeting in Devils Lake, the State Board of Higher Education agreed to salary increases for seven current presidents ranging from 3% to 7%.
Sanford said the increases, decided on during an executive session and thus not made public Thursday, were based on how far below each president’s compensation is viewed to be from a 50th percentile median.
The percentages came from a compensation study, sparked in part by action from a former board member in 2023, who said certain top employees should have to give back their equity raises unless the board agreed to such a study.
Board member Kevin Black, who succeeds board chair Tim Mihalick from this point forward, said the goal is to get all presidents to that 50th percentile over the course of three years.
“I think there's a pathway to get there. We don't do it overnight. That's just not sustainable, and it's politically not very smart either, but we can get there over time,” Black said.
Presidents who received contract renewals and salary increases Thursday are:
David Cook, North Dakota State University; Andrew Armacost, University of North Dakota; Steven Shirley, who leads both Minot State University and Dakota College at Bottineau; Brian Van Horn, Mayville State University; Alan LaFave, Valley City State University; Rod Flanigan, North Dakota State College of Science; and Bernell Hirning, Williston State College.
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Cook and Armacost top the list, with salaries prior to the increases of nearly $498,000 and $492,000, respectively.
Leaders at Dickinson State University, Lake Region State College in Devils Lake and Bismarck State College were not in the mix, as they are either new or interim presidents, Sanford said.
Casey Ryan, in his final board meeting after serving since 2017, has been an advocate for increasing pay for college and university presidents.
“I know some people will think, ‘Well, they're being overpaid.’ No, they're not. They're being paid market,” Ryan said.
He suggested board members look at a different contract mechanism, so as not to end up having to pay out large settlements.
The $800,000 in settlements, paid as reimbursements to Bismarck State and Lake Region, resulted from action by state lawmakers in May on the appropriations bill for the university system.
Doug Jensen, former Bismarck State president, received an approximate $550,000 buyout of his contract in a “voluntary separation” last December, and President Doug Darling of Lake Region will retire at the end of June with an approximate $250,000 settlement.
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“We have to avoid that,” Ryan said, referring to such payouts.
While the board approved the university system’s biennial budget without discussion Thursday, details were hashed out in the months prior during budget and finance committee meetings.
However, several board members expressed concerns about the financial picture going forward, urging the board not to spend a lot of money on a consultant in hiring its next chancellor.
The board is in process of issuing a request for proposals for such a consultant, at various costs and stages.
Jeff Volk, in his final board meeting after serving since 2021, expressed concerns about potential costs and how long the process has already taken.
“We don't need $600,000 worth of effort. We don't need $200,000 worth of effort. In my opinion, what we need is less than $100,000,” Volk said.
He said the consultant should hear from people “in the trenches,” because he said the system of relationships within the university system isn’t working.
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“They need to be listened to confidentially so they can (speak) without fear of reprisal,” Volk said.
Black said he’s worried about the timeline and the cost of hiring a consultant.
“I don't think we've identified where in our budget this is going to come out of and be paid for yet, so I think that's a little bit of a problem,” he said.
The board will not hold a meeting in July, Black said, and will consider combining its August meeting with a board retreat.
Two new members coming on board are Levi Bachmeier of West Fargo and Patrick Sogard of Williston.
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