Unfortunately , an analysis of recent classes ( whose ultimate bar pass rates were over 90 %) indicates only roughly 6-8 % of original out-of-state students per class decide to locate in North Dakota .
The ease of obtaining in-state tuition negatively impacts our efforts to recruit in-state students . If we were able to collect out-of-state tuition , we would be able to afford lower in-state rates while enjoying higher revenue . South Dakota Law ’ s in-state tuition is under $ 17,000 , but it collects its out-of-state rate of $ 36,334 from 37 % of its class for all three years . That enables it to keep their in-state tuition low while still covering costs .
A third factor impacting our finances are increasing costs impacting the entire university . We pay 15.8 % of our revenue back to UND for its strategic investment pool . We also pay our share , according to our size , of service unit costs and overhead . Those are the campus units , ( IT , library , facilities , etc .) that do not generate revenue . Those costs have been increasing and that trend appears likely to continue . We want to do our part . As a small school , we lack multiple programs where we can find efficiencies and opportunities for growth . While we are planning to increase enrollment from 85 to 100 next year , we do not believe we could expand beyond that without needing additional resources or accepting students that may struggle to pass the bar exam .
This year we conducted a three-year budget analysis to better plan and determine potential solutions . Under realistic projections , we will face a potential $ 2.1 million budget deficit at the end of fiscal year 2028 . We simply need to increase tuition every year , as all schools do , to be financially sound . We are considering increasing our class from 85 to 100 students to increase revenue and help us meet the enormous need for more lawyers .
We are also considering a tuition increase of up to 15 % for next year ’ s incoming 1L class , and up to a 6 % increase for our 2Ls and 3Ls . We are considering eliminating our contiguous rates for 1L students . This would implement the increase in stages so no current law student will face a large increase or lose their contiguous tuition rate . Assuming no schools increased their tuition , these measures would rank us the 14th most affordable law school . We would also reduce our potential deficit to roughly $ 350,000 , something we can eliminate through targeted cuts and smart planning .
I believe in transparency , and I want our bench and bar to understand the underlying rationale for any tuition increase . The next step is for us to take a proposal to UND , through the state system , and then through the legislative process . I am grateful for your support , and for the support of UND , our philanthropic partners , and our legislature . We are responsible stewards of our funds . I am confident , despite our challenges , we are heading in the right direction by using a three-year budget outlook , regularly raising tuition as needed , and focusing our efforts on recruiting and preparing North Dakota residents to be excellent lawyers . As always , please feel free to reach out to me at UND . lawdean @ und . edu with any thoughts or suggestions .
1 . https :// www . lawhub . org / trends / tuition
2 . https :// www . alanet . org / legal-management / 2023 / february / columns / the-lsat-and-its-lack-of-relevanceto-lawyering #:~: text = THE % 20LSAT % 20IS % 20 PREDICTIVE % 2C % 20BUT % 20NOT % 20 RELEVANT & text = To % 20its % 20credit % 2C % 20the % 20- LSAT , correlation % 20of % 200.9 % 25 % 20on % 20average .
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A final factor impacting our finances is our scholarship endowments , which will increasingly be a focus of our efforts in the years to come . Currently we have $ 7.1 million of endowed scholarships that generate $ 225,000- $ 250,000 each year for 12 to 15 one-year scholarships . We are confident we will set a fundraising record this year as we recently received $ 1.75 million , the law school ’ s largest one-time gift . Often the dollars raised are through estate gifts , as it was in this instance , and so it will not be realized for years to come . The larger the scholarship endowment , the more scholarships we can offer while remaining financially sound .
TIMOTHY G . RICHARD trichard @ serklandlaw . com
JACK G . MARCIL RETIRING JANUARY 1
Thank you , Jack , for your contributions to the legal profession in ND since 1968 !
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