Board of Regents Fiscal Year 2015 Budget Hearing Joint - - PDF document
3 Overview Presentation - BOR - FY15 Thursday, January 30, 2014 5:05 PM Dean Krogman, Board President Dr. Jack Warner, Exec. Director South Dakota Board of Regents Fiscal Year 2015 Budget Hearing Joint Appropriations Committee February 4-5,
Dean Krogman, Board President
3 Overview Presentation - BOR - FY15
Thursday, January 30, 2014 5:05 PM
Fiscal Year 2015 Budget Hearing Joint Appropriations Committee
February 4-5, 2014
South Dakota Board of Regents - 2014
Brookings, President
Madison, Vice President
Spearfish, Secretary
Jack Warner, Executive Director and CEO jack.warner@sdbor.edu
(605) 773-3455
Research
Develop the workforce
Educate more of our citizens to higher levels Encourage out-of-state students to make South Dakota their new home for higher education and a futu re career
Use public university research capacity to strengthen South Dakota's economic development and to commercialize new ideas
Make the most of faculty expertise and high-tech research innovations
Expand access to public higher education for more South Dakota citizens
Help high school students become 'college ready' Work directly with under-served student populations
, Examples: low-income, first-generation, and American Indian students
Once enrolled, ensure each student's success, leading to graduation and preparation for a successful career
dependent Students have picked up a bigger share of the cost each year, as state support fails to keep up with growing costs and growing enrollments The greater the level of state (taxpayer} support, the greater the ability to offer South Dakota citizens a lower-cost public education
By many measures, South Dakota sits at the low end of state support for higher education in our region Our vision:
Provide a quality education to all citizens Prepare students to compete in a state, national, and international economy
Our challenge?
Reverse South Dakota's t rend of cost shifting to students!
Unique demographic challenges facing South Dakota Projected Change in SD Population
by Age Group: 2010-2040
80,000 ~-------------------~ 80.0% 70,000 68,485 60,000 -+------------------ 50,000 +---------------------1 40,000 -+----------------~- 30,000 +---------------~-- 20,000 10,000 11,259 0-19
5.0%
20-39 40-64
Source: UVA Weldon Cooper Center for Public Service, Narlonal & Slote Population Projection , 2013
65+
58.7
60.0% 40.0% 20.0% 0.0%
Number Percent
Did Not Attend (21 ACT or higher), 4%
Institutions
higher)
Source: SD Dept. of Education graduate data; Notional Student C learinghouse
Steady growth in students being served by South Dakota's public universities.
40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 25,719 Source: BOR Foct Book Fiscal Year 2014
Public University Headcount Enrollment
~
.u,~65
Completed Degree at Home Institution 49.2% 49.6% 51.6% Completed Degree in Regental System 54.0% 54.1% 56.4% Completed Degree at Institutions Outside 59.7% 59.9% 61.9%
Continued Enrollment 67.2% 67.3% 69.1%
Source: Regents' Information Systems, National Student Clearinghouse
2012 Freshmen Migration Study
South Dakota is a net importer of college fresh
Gain to SD improved by nearly 46% between 2008 and 2010
72% of South Dakota resident students remain in state after college to work or pursue additional education 33% of out-of-state students also stay in the state following graduation
Sources: BOR Student Migration Analysis, 2012; BOR Placement Study, 2013
Preparing South Dakotans for tomorrow's workforce
1,800
1,553
1,600 1,400
1,117
1,200 1,000 800 600 400 200
2012-2013 Degrees from SD Public Universities
958 666 608 582 563 314 232
0 +--_.__....._~...,__--'-~.....___._~--'---'----'----'~--'--'-.....--'----_.__~._...,__~_.__............., Source: Regents' Information Systems
Unemployment and Earnings by Educational Attainment, 2012 (US)
2.5% • Doctoral Degree 2.1% • Professional Degree 3.5% - Master's Degree 4.5% - Bachelor's Degree 6.2% Associate's Degree 7.7% Some College, No Degree 8.3% High School Diploma 12.4%
< High School Diploma
16% 12% 8% 4% 0%
Source: U.S. Bureau of
Labar Statistics, Current Population Survey
$0 $84,736 $90,528 $67,831 $55,621 $40,959 $37,933 $34,020 $24,576 $25,000 $50,000 $75,000 $100,000
The financial value added of higher education
South Dakota Median Income by Field of Study and Degree Level
N$90,000 ~-------------------"'~
.----------------------
....
.,,
$80,000 +-----------------------=---------------------- $70,000 +---------------------1 $60,000 +----... "'
,__
____ ~~-----\I')
~
$50,000 +----=
~,__
__
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ll'l_<"l.-t .
'° "'
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"$40,000 +--
00
0.t
~
$30,000 $20,000 $10,000 $0
Bachelor Grad / Prof
Source: U.S. Census Bureau - American Community Survey (2006-2010 5-Yr E st.)
A more highly educated population:
Pays more taxes and relies less on income-support programs Is more likely to receive health insurance and pension benefits Leads healthier lifestyles, reducing health-care costs Improves voter participation and civic engagement Results in better education
for children Increases the chances that adults will move up the socio-economic ladder
Who benefits?
Local communities Our state The nation
Source: The College Board, "Education Pays 2013"
and Economic Development
S200,000,000 -r------------------------------------------- S180,000,000 -+------------------------------------------ S160.000,000 -+--------------------------------~--- ~----- S120,000,000 +--------------------------....,,,.-=:-+-----~-----=---,:--::=--::---=-=:-:--- SI00,000,000 +--------------------::Jlll'o::::....---------#-------:-,...------'~----"'IE:---- S80.000,000 t------------:::::;;;;;;;-,,,it-~----::t.;;;;;;;;;;;;._.,..,il!!.~--------~---- S60.000,000 +-----..,...rrmmn-.,"'-----:::::aa_.Cii=-~--------------------- $40,000,000 +-------~~,,,,,,e.:::..._
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so +---~--~-~-~~-~-~--~-~---r---~--~-~-~~-~-~--~-~
FYOO FYOI FY02 FY03 FY04 FYOS FY06 FY07 FYOS FY09 FYIO FYll FY12 FY13 Awards E xpenditures E conomic Impact
Source: BOR system office
Centers
$30.7 Other State
(funding in millions of dollars) Source: BOR system office
Federal
$121.9
Funds
$18.9
Invention disclosures - 318 Patent & IP protections signed - 138 Patents/licenses issued - 65
$300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0
$3.9 $0.9 $8.1
BHSU
(in millions of dollars)
DSU NSU
SDSM&T
Awarded
$244.8 39.8
SDSU USD
Source: BOR system office
Pl' \11111
~
NANOFIBER
S EPARATIONS
Biorefinery World, LLC
Redefinfog ,efinc,; c,
CalxAqua, LLC
Ht!althy Vatl'r for Soc IV
National: 68% of students earning 4-year degrees graduate with debt
SD: 78% of students earning 4-year degrees graduate with debt
South Dakota's percent-with-debt figure is higher than any other state
$20,000
Undergraduate Resident FY14 Total Cost to Students
$17,254 $17,529
$30,000
$15,000 $13,785 $14,037 512,653 $12,895 $13,079
55,000
so 1'"D MT WY NE SD Ml\ IA $20,000 $15,000 $10,000 $5,000 J
So
$15,022
Average Student Loan Debt South Dakota System
2012 National Average: $29,400
s
20•300 $20. ns $17,472 $24,986 $24,143 $25.408 $23,052
1998-99 2001-02 2004-05 2007-08 2009-10 2010-112011-122012-13
Average Loan Default Rates for Institutions in the United States
2009-2011
(3-Year Averages)
South Dakota Nation SD State Rank
All Institutions
7.7% 9.3% 23
Private
6.5% 4.8%
36
Proprietary
14.3% 14.1%
36
5.6% 8.4% 8
South Dakota Public University Loan Default Rates 2007-2011
Regental 2.2% 2.6% 4.0% 5.2% 4.3% 3.7%
Source: U.S. Department of Education
FY12 Public Postsecondary Education Educational Appropriations and Net Tuition Revenue Per FTE
$16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000
so
Iowa Minnesota Montana Nebraska
$4,390 $4,607 $4,007 $6,933 Net Tuition Revenue per FTE $7,060 $7,589 $4,834 $4,477 North Dakota $6,938 $6,647
Source: SHEEO Store Higher Education Finance (SHEF) R eport, 2012
South Wyoming National Dakota Average $4,195 $14,105 $5,906 $7,129 $2,253 $5,189 (Note: SHEF data adjusted for enrollment mix and cost of living, so numbers will differ from BOR Fact Boak.)
Declining state support drives up tuition and fees, limits access for lower-income students
65%
Student f upport
60%,
L· ..,._.
,:::..,o61 O SS%
55~
/ ) 9' Vo
52% _E%
,L,,.r
51% 55%
.....
..........-s1
48% 48% 49%
I',...
45,o
., ,.......
:state
45' o ~ 1 1t .
Support
~w .
SO% 45% 40%, 38% 35% 30%
FYOJ FY04 FYOS FY06 FY07 FYOS FY09 FY10 FYl l
FYll
FY13
State support of South Dakota public higher education has dropped from 55% to 39% in 10 years.
Source: BOR Focr Book FY 2014
39°/o of Educational Costs and
21
% of
Total Public Higher Education Budget
Supported by State Tax Dollars
Board of Regents All Funds by Funds Source Fiscal Year 2014 $793,246,655
Room & Board $36,555,742 , 4.6% \ Other $142,405,050""'-..... 18.0% Source: BOR system office Federal Restricted $161,074.672 20.3% Federal Appropriated $8. 93. 4 1.1% ---..: chool & Public Land $1,918,043 0.2%
for resident students
$3,955,862 to support salary policy, health insurance & benefits, operating inflation
supported resident students in FYlS
for all state employees
match
Year two of a four-year phased-in match Brings HEFF M&R up to 2% of academic buildings' replacement value
$1,161,671 for utilities' funding
Medicine expansion
Increases class size by 11 per year= total of 44 new students Addresses future need for new physicians
Comprehensive Annual Financial Report
Governor requests CAFR be audited and issued no later than Dec. 31; requires all agencies to shave at least 3 months off current timelines Supports additional reporting capabilities and staff
preceptor reimbursements at SDSU
Payments to mentors of Doctor of Nursing Practice students in practice settings
Supports growth in e-learning courses FY13: served 429 students from nearly 90 school districts
$111,000 for additional PA preceptor funding at USD
Supports mentorship of 5 new physician assistant students added in FY13
decade totaling $258,123,679 Student fee implemented FY94; this is on top of 20% of all tuition dollars into HEFF Board is increasing HEFF commitment at 6% per year
Studant M&R FH HEFF • 20% of Tuition
5%· 6% lncraasa General Funds Year 1&2 of 4-Year Plan FY15 Request Total Current Percent o f Replacement Value Academic Facility Replacement Value
2% of Replacement Value Goal Additional Need
3-Yaar Phase-In FY13
$980,835 $11,667,008 $583,350 $0 SQ
~13,231,193
1.12%
FY14 FY15
$984,848 $970,810 $14,250,358 $15,105,379 $855,021 $906,323 $1,729,824 $1,729,824 SQ Sl,647.447
~17,820,051 ~20,359,783
1.51% 1.72% $1,182,733,747 $23,654,675 $4,942,340
$1,647,447
$2.6 million - FY14 Health Insurance Shortfall
Offsets portion of shortfall on tuition- and fee-funded employees BOR still short $1.9 million that needs to be covered (see next
slide) $599,524 - FY14 Utility Shortfall
Updated energy utilization data from BFM
$235,250 - Governor's Faster CAFR
Funds data modeling and report development, reporting tools, security software needed to generate state-required financial reports more quickly
$41,833 - South Dakota Opportunity Scholarship
Funding to cover all scholarship payments to current SOOS recipients
BOR Request for One-Time Funds - SB94 (Health Insurance Shortfall)
December 2013: Governor recommended increase of $2.6 million in general funds to help pay for BOR tuition/fee portion of increased state employee health insurance costs in
FY14
covered Without state support, the only funding source to cover these increased insurance costs is the student!
cover the insurance shortfall for BOR employees compensated by tuition, fees, and other funds Total request: $1,894,008
Unit supports research, teaching, and Extension needs of South Dakota's pork industry
methods or standards
HB1112 completes funding package, allows project and important pork industry research initiatives to move forward this year
State general funds requested: $2,037,000 Other authority requested to spend $1 million from the Higher Education Facilities Fund (HEFF)
Joint Committee on Appropriations
(letter dated December 11, 2013)
improve student success (supported by
faculty and support staff
integrated picture of student performance
that leads to graduation
registration, and other processes
. maJor
through credit-bearing courses
remediation coursework
projects
~
Successful efforts will be brought to scale
~
Revisions to policies and practice
(since 2010)
59 academic degree programs
bachelor and associate degrees
remediation
least 15 hours/semester, so they can complete degree in four years
interest area
majors in the interest area
to support student success initiatives
T: ended a contracted
maintenance agreement 12/31/13, services to be performed in house
programs)
federal funds reduction)
to improve teacher quality)
PuBLIC UNIVERSITIES & SPECIAL SCHOOLS