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, 2014

Stewardship of Public Higher Education in South Dakota South Dakota Board of Regents - 2014 • Dean Krogman • Terry Baloun, Sioux Falls Brookings, President • Harvey Jewett, Aberdeen • Randy Schaefer • Kathryn Johnson, Hill City Madison, Vice President • Joe Schartz, Humboldt • Randy Morris • Kevin Schieffer, Sioux Falls Spearfish, Secretary • Bob Sutton, Pierre Jack Warner, Executive D irector and CEO jack.warner@sdbor.edu (605) 773-3455

Our challenge ... our vision • Dean M. Krogman, President

What is our challenge? • Deliver a Career-Ready, Job-Ready Workforce • Strengthen Economic Development through Research • Keep Higher Education Accessible, Affordable

Our Vision: Public Higher Education is Vital to South Dakota's Success • All of this is important to South Dakota's future! 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 , Examp l es : low-income, first-generation, and American Indi an students Once enrolled, ensure each student's success, leading to graduation and preparation for a successful career

Access and Affordability: They Go Hand in Hand • South Dakota public universities have become very tuition 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, nationa l, and international economy Our challenge? Reverse South Da kota's t rend of cos t sh i fting to students!

The state of public higher education in SD • Jack Warner, Executive Director & CEO

Workforce Development Unique demographic challenges facing South Dakota Projected Change in SD Population by Age Group: 2010-2040 80 , 000 ~-------------------~ 80.0% 68,485 70,000 58.7 60, 000 -+------------------ 60 .0% 50 ,000 +---------------------1 Number 40, 000 -+----------------~- 40.0% 30,000 +---------------~-- Percent 20,000 20.0% 11,259 10, 000 5.0% 0.0% 0 0-19 20-39 40-64 65+ Source : UVA Wel d on Cooper Cen ter for Public Service , Narlonal & Slote Popula tion Projection , 2013

Postsecondary Placement of High School Graduates in South Dakota Did Not Attend • Regental System (21 ACT or higher), 4% • Technical Institutes • Private / For-Profit Institutions • Out-of-State Institutions • Did Not Attend • Did Not Attend {21 ACT or higher) Source: SD Dept. of Ed ucation graduate data; Notional Student C lea ri nghouse

~ As a State, We are Making Progress to Enroll More Students Steady growth in students being served by South Dakota's public universities. Public University Headcount Enrollment 40,000 .u ,~65 35,000 30,000 25,000 25,719 20,000 15 ,000 10 ,000 5,000 Source: BOR Foct Book Fiscal Year 2014

Six Year Graduation Rates: Steady Improvement Over Time 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% of Regental System Continued Enrollment 67. 2% 67.3% 69. 1% Source: Regent s' Information Sy s tem s, National Student Clearinghouse

Attracting and Retaining a Future Workforce 2012 Freshmen Migration Study South Dakota is a net importer of college fresh • 2, 288 freshmen imported from other states • 1,458 freshmen lost to other states • Net gain to So u th Dakota = +830 students • Import-to-export ratio has improved steadily since 2000 Ga in to SD imp rov ed by nearly 46% bet ween 2008 and 20 10 • Placement Study of Public University Graduates 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 Migrati on Analysi s, 2012 ; BOR Pla ce ment Study, 2013

Filling the Workforce Pipeline Preparing South Dakotans for tomorrow's workforce 2012-2013 Degrees from SD Public Universities 1,553 1, 800 1,600 1,117 1,400 1,200 958 1, 000 666 800 608 582 563 600 314 400 232 200 0 +--_.__....._~...,__--'-~.....___._~--'---'----'----'~--'--'-.....--'----_.__~._...,__~_.__............., Source: Regents' Information Systems

Benefits of Higher Education • Benefits to the individual Unemployment and Earnings by Educational A ttainment, 2012 (US) $84,736 Doctoral Degree 2.5% • $90,528 2.1% • Professional Degree $67,831 3.5% - Master 's Degree $55,621 Bachelor's Degree 4.5% - $40,959 Associate's Degree 6.2% $37,933 7.7% Some College, No Degree High School Diploma $34,020 8.3% < High School Diploma $24,576 12.4% $0 $25,000 $50,000 $75,000 $100,000 16% 12% 8% 4% 0% • Unempl oyment Rates, 2012 • Median Annual Earnings, 2012 Sou r ce : U.S. Bur eau of La ba r S ta tistics, Current Populati on Survey

~ ~ Wage Premiums: The financial value added of higher education South Dakota Median Income by Field of Study and Degree Level N 0 $90,000 ~------------------ -"'~ .---------------------- .... .,, $80,000 +-----------------------=---------------------- $70 ,000 +---------------------1 $60,000 +---- ... "' ,__ ___ _ ~~ ----- \I') ---- --- ,..: ...... r-,... ("1 _."',...."~ -----,- o:,':l'_ ,__ __ $50,000 +----= ~ ,__ __ ll'l_<"l.-t . '° "' "' " "' '° q 417 -..,....-e 0 " $40,000 +-- 0 .t 00 $30,000 $20,000 $10,000 $0 • High School • Associate Bachelor Grad / Prof So ur ce: U.S. Ce nsus B ure au - Ame ri can Community Survey (2006-2010 5- Yr E st .)

Higher Education Serves the Public Good, Builds Stronger Communities A more highly educated Who benefits? population: Local communities Pays more taxes and relies less on income-support Our state programs Is more likely to receive The nation 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 Source: The College Board, " Edu cation Pays 2013 "

Growing research capacity to benefit South Dakota • Paul Turman, System Vice President of Research and Economic Development

Research is Economic Development S200,000,000 -r------------------------------------------- S180,000,000 -+------------------------------------------ S160.000,000 -+------------------------------- -~--- ~----- S1 20,000,000 +-------------------------- ....,,,.-=:- +-----~- ----=---,:--::=--::---=-= :-:--- SI00 ,000,000 +----------------- ---::Jlll'o::::.... ---------#-------:-,...------'~----"'IE:---- S80.000,000 t---------- --:::::;;;;;;;-,,,it-~ ----::t.;;;;;;;;;;;;._.,..,il!!.~--------~---- S60.000,000 +----- ..,...rrmmn -.,"'-----::: ::aa_.Cii=-~--------------------- $40,000,000 +-------~~,,,,,,e.:::..._ _____________________________ _ s 2 o, ooo , ooo +------' S "' J .c. 3 "' 1 .c. 87 '-=- 27 ;..;; 2 ;..._ ____________________________ _ so +---~--~-~-~~-~-~--~-~---r---~--~-~-~~-~-~--~-~ FYOO FYOI FY02 FY03 FY04 FYOS FY06 FY07 FYOS FY09 FYIO FYll FY12 FY 13 Awards E xpenditures E conomic Impact Source: BOR sys tem o ff ice

Governor Research Centers • Five initial research centers funded in FYOS • $3.3 million state investment annually • $30.7 million total funding over eight years • Generated $222.5 million in external awards • 7:1 return on investment Centers $30.7 Other State Funds $18.9 Federal $121.9 (funding in millions of do ll ars) Source: BOR system office

Research is Job Development • Job creation - Faculty research efforts (FTE) - 607 • Research innovations - FY07-FY12 Invention disclosures - 318 Patent & IP protect ions signed - 138 Patents/licenses issued - 65 • Institutional-level grant activity $300.0 $244.8 $250.0 $200.0 $150.0 $100.0 39.8 $50.0 $8.1 $3.9 $0.9 $0.0 BHSU DSU NSU SDSM&T SDSU USD (in millions of dollars) • Submitted Awarded Source: BOR system off ic e

~ ~ Examples of Commercialization Activity in South Dakota Pl' \11111 AQ!JA T CH NANO FIBER S E PARATIONS Biorefinery World, LLC Red efi nfo g ,efinc,; c, CalxAqua, LLC tran Ht!althy Vatl'r for Soc IV