UND also faces financial woes

As more discussion arises surrounding the impending national recession and the $700 billion bailout plan making headlines, the financial integrity of this country and some of its legacy institutions are feeling the impact.

But it's not just Ford, GM, Crysler and a handful of financial institutions that are feeling the impact - universities across the country are suffering as a result of difficult times. UND and NDSU are, by no means, protected from the dramatic change in financial pace.

Two weeks ago, the Grand Forks Herald reported that NDSU is suffering tough financial times. Compared with their debt in 2003 sitting at $51.4 million, their current figures now stand around $117.8 million. What has caused this figure to nearly double in such a short time? Each year since 2004, the NDSU has financed a major bonding project. These have included residence halls, the Memorial Union expansion, and the construction of a fitness and wellness center addition.

With such an increase in debt, it may be hard to believe that NDSU has two more large projects in the future plans, including on campus apartments and a new parking ramp. However, John Adams, the vice president for finance and administration explained that because of growing enrollment, revenue has increased, and thus so has the capacity to absorb debt.

According to him, the debt of NDSU is still in a very manageable position.

So how does that compare to the University of North Dakota? Although UND was cited as having nearly $105 million dollars of debt as of June 30, Alice Brekke of UND's budget office claims, "UND is in a very good position from a debt perspective." While UND's debt has increased in the past years, Brekke said that a lot more goes into it than just the raw numbers.

"When an institution goes forward and considers whether additional debt is a good idea, there are some ratios that we look at. We work with bond counsel to make sure that we aren't getting too far out on a limb, and we are certainly well within the standards on those ratios."

Like NDSU, UND has also had some major bonding projects as of late. Most recently, Brekke spoke of the Wellness Center. She said the center was financed by revenue bonds and a student fee put in place that supplies revenue for the operating expenses and the bond retirement.

As for future projects, she was not certain of any immediate plans, though she did speak of an Information Technology System that would join all the areas on campus that relate to IT. Together with renovations and additions to the Education Building, the financial office is hoping to receive government funding for these projects.