Staff for the North Dakota University System have given the Board of Higher Education’s Budget and Finance Committee a first look at how the allotments, plus Gov. Jack Dalrymple’s request for 90 percent budgets for the upcoming two year period, will affect the System’s spending.
System chief financial officer Tammy Dolan told the committee – when you take the 6 ½ percent allotments, plus another 3 ½ percent cut – to add up to 10 percent – it would mean a $49.5 million reduction for the 2017-2019 biennium. Dolan said the biggest area of spending is in personnel.
"If you look at the count from the '15-'17 allotment, and the '17-'19 budget, it's about 490 positions," Dolan said.
Of that 490 -- 190 are vacant positions, 125 would be early retirements, and 70 would be reduced contracts or part-time workers. Dolan said that would leave a potential reduction in force of about 105 staff. Dolan also said these numbers could change, as the 2017 Legislature meets.
"A budget is really just a plan," Dolan said. "That's all that it is."
Board member Greg Stemen said all state agencies are going through a similar exercise – and he complemented the campus presidents for their work on the budget issues.
"Some people might confuse being realistic with being pessimistic," Stemen said. "But with the current environment, we have to realize exactly what's taking place."
"I think we all wish we could have a magic wand, and we wouldn't have to face what we're facing," said Board member Nick Hacker. "We just don't have that."
Hacker said he will push for more shared services -- and more consolidation of services -- among the 11 campuses.
"I've had feedback that these don't save that much," Hacker said. "If it saves us from reducing 490, and we only have to reduce 489, It think it's successful."
