The state Board of Higher Education agreed Thursday to let North Dakota State University use nearly $200,000 of its own money to cover cost overruns for a new president's house.

The board had said it would not allow state money to be used to cover added costs for new houses at NDSU and the University of North Dakota. It had estimated that the houses would cost about $900,000 each, and the construction was to be financed with private money. The price tag for NDSU's house skyrocketed to more than $2 million.

The NDSU Development Foundation, the school's fundraising arm, had agreed to cover all but about $196,000 of the extra costs. Under the plan approved by the board Thursday, the balance will be paid from NDSU funds that are not part of tuition or taxpayer dollars, including money from interest income and commission on soft drinks.

UND professor Jon Jackson, the faculty adviser to the board, said the foundation should put the money to better use, possibly for new programs.

"I personally like the idea of holding the people who took on the authority to build those houses accountable for funding them," Jackson said.