A BILL for an Act to amend and reenact subsection 2 of section 15-18.2-03 of the North Dakota Century Code, relating to state aid for institutions of higher education; and to provide legislative intent.

69th Legislative Assembly (2025-26)

The bill preserves funding for credits above prior levels by applying a 1.0 growth factor to excess credits, preventing penalizing drops in completion factors.

Second reading, failed to pass, yeas 0 nays 47

SB 2034 — Summary (Higher Education Funding; North Dakota)

Status (as provided)
- Bill number: SB 2034
- Subject: Amend and reenact subsection 2 of NDCC § 15‑18.2‑03 (state aid for institutions of higher education); legislative intent.
- Introduced: March 7, 2025.
- Note on procedural records: the materials supplied include conflicting procedural entries (a header line listing “Second reading, failed to pass, yeas 0 nays 47” and a separate legislative actions list that records later passage and gubernatorial approval). These conflicts appear to come from mixed-source document content. Verify current official status on the North Dakota Legislative Branch website for final disposition.

Purpose and intent
- The bill seeks to modify how the higher education funding formula treats changes in institutions’ credit‑hour completion that would otherwise reduce an institution’s credit completion factor. It also states legislative intent that certain courses (wind energy technology and law enforcement) be moved into the career & technical education (CTE) instructional program classification within the funding formula.

Key provisions
- Amendment to NDCC § 15‑18.2‑03(2):
- If an institution’s completed credit‑hours would produce a decrease in its credit completion factor compared to the prior biennium, the State Board of Higher Education must:
- Multiply the product computed under § 15‑18.2‑02 by a credit growth factor of 1.0 for credits in excess of the factor the institution received during the prior biennium.
- Require that any weighted credit‑hours receiving that credit growth factor carry a weight of 1.0 under § 15‑18.2‑02.
- Multiply the remaining weighted credits by the credit completion factor the institution received in the prior biennium.
- Legislative intent clause:
- Directs that wind energy technology and law enforcement courses be transferred to the career & technical education instructional program classification for purposes of the higher education funding formula.

Who is affected
- Public two‑ and four‑year institutions in North Dakota (funding allocations under the state higher education funding formula).
- State Board of Higher Education (administration of formula adjustments).
- Programs/courses reclassified to CTE (wind energy tech, law enforcement) — may change how those credits are weighted and funded.

Likely impact
- Prevents an immediate funding penalty (via a reduced completion factor) for institutions that see a decline in the completion factor by preserving prior‑biennium factor for most credits while applying a 1.0 growth factor to incremental credits above prior levels.
- Reclassifying specified programs to CTE may alter per‑credit weights and thus shift funding distribution across institutions and programs.
- Implementation will require administrative adjustments by the State Board and possibly updates to program classifications and institutional reporting.

Recommendation
- Because procedural records in the supplied materials conflict, confirm final enactment and any effective date with the official North Dakota legislative records before relying on the bill as law.