JILL SCHRAMM/MDN Sen. David Hogue, R-Minot, left, and Tim Mihalick with the North Dakota Board of Higher Education participate in a discussion on higher education Thursday, June 18, at a retreat of the North Dakota University System Public Affairs Council at Minot State University.

Given North Dakota’s workforce needs, incentivizing the state’s colleges and universities to attract more students could be money well invested, according to decision-makers who spoke at Minot State University Thursday, June 18.

State Senate Majority Leader David Hogue, R-Minot, and Tim Mihalick of Minot, member and former chair of the State Board of Higher Education, spoke about what might be ahead for higher ed during a retreat of the North Dakota University System Public Affairs Council.

Post-secondary data compiled by North Dakota state agencies for 2023-24 shows about 3,000 high school graduates that year declined to pursue higher education, or nearly 41%. The 59% who chose higher education was down from 65% six years earlier.

For policymakers, the percentages raise concern that jobs could go unfilled due to lack of trained workers.

According to the the North Dakota University System (NDUS), the data identify the 41% of North Dakota youth who steer away from higher education upon high school graduation as those entering the military, the workforce, a trade program, cosmetology school or who are not employed.

Mihalick said thought needs to be given by institutions to how to attract more of those North Dakota students who aren’t choosing some form of higher education.

Hogue said enrolling more students on campuses is a priority.

“In my view, and the view of a lot of legislators, higher education cannot only educate our students, but they can be the number one solution in terms of our workforce challenges by bringing additional people into the state. It’s not an overlooked attribute with higher education,” Hogue said.

Universities that successfully draw students from neighboring states or Canada should be rewarded when the state considers higher education funding, he said. It becomes a good investment when those students stay after graduation, which frequently happens, he said.

Mihalick, who had come from Ohio to attend Minot State University and remained in the state, acknowledged the benefits of attracting out-of-state students but noted the controversy around pursuing online students, who never actually come to the state. However, from a business perspective, if online education generates revenue for the universities, it can translate into benefits for all students, he said.

Hogue said he has no issue with online education, but attracting an out-of-state, online student because North Dakota’s tuition is lower isn’t the goal the state should be aiming toward.

North Dakota’s nearly 49,000 higher education students are subsidized by taxpayers, he noted. As a legislator, it is harder to justify subsidizing an out-of-state student who likely will never be part of the state’s workforce, he said.

For those North Dakota high school graduates who sought higher education in 2024, a four-year public institution was the most popular choice, favored by 32.6%, even though down from 36.2% six years earlier. Two-year schools attracted 9.5% and private schools attracted 4%, which was similar to six years ago. About 13% went out of state for higher education, according to the state data.

The National Center for Education Statistics found about 42% of recent high school graduates nationwide were enrolled in four-year institutions and 20.7% were enrolled in two-year institutions in 2024, which has been fairly stable over the past five years.

Meredith Larson, chief operating officer for the NDUS and moderator for Thursday’s discussion at MSU, said the percentages indicate a need for less competition for the same students among higher education institutions and more focus on capturing more students overall through the variety of training programs offered through the schools.

In Bismarck, Lisa Johnson, deputy commissioner for Academic and Student Affairs for the NDUS, said there are from 80,000 to 100,000 North Dakotans with some college but no credentials. That is a market higher education institutions need to recruit from, she said, whether those individuals are candidates for degrees or simply could become more valuable in the workforce with certifications.

“If we could re-engage with that population, that would be really critical,” she said.