Budg t H nng Joint Appr pri tion 1n1nitt January 17-1 , 2012 The - - PDF document

Agency Presentation Slides FY13 - BOR

Fi al Yi r 201 Budg t H nng Joint Appr pri tion 1n1nitt January 17-1 , 2012

• The State of Public Higher

Education in South Dakota

• uth Dakota Board of Regents - 201 2
• Kathryn Johnson

Hill ity, Pre ident

• D an Kr gman

Br king , Vi

Pr id nt

• Randy cha £ r

Madi on

• Tc rry Baloun,

n ca

• Jam

Han en , Pierre

• Harv y J w tt, Ab rd en
• Randy M rri , p arfi h
• Carol Pagon

ioux Fall

• Patri k Wi b r, Montro

• Our Challenge:

Delivering a Career- and Job-Ready Workforce

Higher education and · workforce deYelop1nent go hand in hand . ur priorities are to :

• Enroll and graduate more itizen .

rm d with du ation and skills, th y will h Ip build , D' nomy.

• Attract new residents to South Dakota.

With an aging demographi , it i e ential to attract more yomig people to D

as our future workforce.

• Leverage univer ity-based re ear hand develop1nent.

Research initiative contribute significantly to D's conomic growth.

• Grow graduate programs.

lmpro e ' low ranking of itizen v ith graduat or prof . ional d gr , who

"ill become our future workforce

.

...

,

• Higher Education Pays Personal Dividends

Increasing levels of education pay off in higher earnings and lower unemployment rates.

nempl )nlCnl llal~ -01 I di n \nnual Eamine in 20 10

\I

I \ 'I han

II h hool Oiplom

u

.

...

Source: U.S. Bureau ef labor Srarirrics, Current Populanon Surrer

• SD Wages by Hiring Preference Levels

I liring Preference

• ndary du ati n at I

than th

• iat d gr

I v I

A ociate deor e

Bah lor' · cl gr

Ba h lor' d gr

and, ork xp n n c

Mat r' cl gr

Doctoral d gr e Fir t pro£

i nal cl gr

2009 Average Salary

29,625 41,27 45,2 9 0,27_ 54,543 $64,5 6 121,345

Source: SD Deparrmenc of Labor &.Re9ulat1on

• Higher Education Also Serves the

Public Good

• A n1ore highly educated

p pulation:

Attra t and retain high-te h bu ine and indu tr · Luw r s unemploym nt rate

~

Low r h alth costs

)"" lmproYes Yoter participation

and ci\;c engagem ent Re ult in better edu ation

for hildr n

)"" Rai

aggr gat arning and incom e potential

• Who benefits?

)"" Local

• rmnuniti s

)""

w · tat

)"" The Nation

Source: The olle9e Bou rd, "Educat,on Pays 10 IO"

• As a State, We Are Making Progress to

Enroll More Students

. ..

• A near-record

number of students are

being served by D public universities, at the same tim that K-1 2 enrollments ha, e declined, th n 1 , 1 d.

Public University Enrollment

K-1 2 Enrollment

,.........,

8 g 8

,--,

......

• urces: Board ef Re9ents' Fact Book FY 2012;

South Dakota Department ef Edt1 canon

• ... but There is Much More to Do
• En ure higher education re1nain affordable for c 11 citizen
• ar full · n1anag tuition and f

mer as

• SD i

nl) tat with ut a tat -fm1d d n d -ba d finan ic 1

aid

progra1n to incr ase low-inc01n coll g participation.

Undergraduate Resident- FY12 Tuition & Fees as a Part of Total Cost

30.000 5.000 0.000 15,000 10.000 5,000

• Total Cost
• Tuition

s2;,ooo

s 1 ;,ooo

so

Average Student Loan Debt South Dakota System

2011 National Average: $25,250

• No Growth in State-Funded FTE
• t th

ain tin1 that student headcount is up 21 °/o (6,259) .

• 3. 1

50 3.300 3,150 3,000

• 2. 50
• · 00

2.550

• .~oo

_.250 2,100 1,950 1,800 1.650 l, 00

• eneral f unded

• FrJOand Fl'I I .~11.11.ifundtJ FTE art ,nc/udtd ,n t.bt Gma.,J Funtkd column .

• Today's Reality:

Declining state support drives up tuition and fees

and limits access to lower-income students

57%

tate uppo1t

• -r---t--t-:.---,:..+-

so•.

45',

4 %

upport

State support of South Dakota public higher education dropped from 57% to 39% in 11 years.

39%

Why has this happe n d? , I · .6°1

cut in general fi.md support OYeT 3 ye.i.rs equals a S27. million cut to higher cduca ion' budget. >" ~o new state dolJars since FY98 to fw1d state-support eru·olJment grnwth of 69 students equals a hortfall of S

• 3. I million.

, S

18 million shortfall in state fundina of

utilitv costs.

3 million loss in purchasing power since 199 .

• Soum. FYOJ .FYIJ

R,11""'' fJtt &,el, fl'J 2- Pro1ur.ed daLa

Limited State Support Puts Pressure

• n Tuition to Fill Funding Gaps

Appropriations Per FfE

FYlO Publi Po tsecondary :du cation

NetTuition Revenue Per FfE

FY10 Public Postsecondary

Education

su~t s~.126

• 000

s.

• I. 46

I

MT D

U

WY

D Source: SHEEO Srau H19hu Education Finance 1 SHEF) Report, 2010

• (. 1-1£1- J'1IU t1Jp1 uJ

• lums. l t) numbcn n,1/ J1f,:,fr"m ~o·

• 19% of Public Higher Education Budget

Supported by State Tax Dollars

Board of Regent FY12 All Fund by Fund ourre

$793,301,375

"'

3 . General Funds SlSO 748,788 19%

1•.

HEFF S20,092,844

3•.

• •.

Source: BourJ ef Rc9enis'J,s ul '!ffiu

Getting more students graduated ...

Groups

Pl'rcentagl' Freshmen 4,470 4,865 4,721 4,857 5,336 5,241 +17% Undergraduate Degree Graduates 3,616 3,728 4,004 4,075 4,256 n/a +18% Fall FTE Enrollment 23,605 24,089 24,512 25,468 26,625 26,719 +13% Total Graduates 4,788 4,918 5,272 5,360 5,591 n/a +17%

• urce: Board ef

Re9enrs' irscem Jaw

• ... to stay and become our future

labor force in South Dakota.

Projected Change in South Dakota Population by Age

2005-2025

80,000 73,003 70,000 60,000 50,000 40,000 30,000 20,000 10,000

118

• 944
• 1 ,913
• 1,380
• 10,000
• 20,000

0-17 18-24 25-44 45-64 65 and Older

Source: U .S. Census Bureau

• Meeting our Goal to Produce More

Graduates: BOR Policy Changes

• Redu ed er dit hour

require1nents for mo t bachelor and as ociate degrees

From 128 to 120 er cl.it hours for bach lor d gr e

~

From 64 to 60 credit hours for a o iate d gre Chang effecth- Summer _OL h1dent saYings to degree of S2 000

• R d ign of r 111 dial

ur " 'ork

• evv gener 1 tudie degre

for 'r ad) adult '

• B f d-up rti ul ti n

agree111 nt " 'ith t hni al

in tih1t

• il g -r adin

initiativ

with DOE

Also considering:

• P rf
• nnanc fw1<ling
• w r - o t a ociate deore

at t, o univ r ity

nt r

• Postsecondary Placement of High

School Graduates in South Dakota

• Regental ystem
• Tedmical I

n tih1te

• Prh·ate/ For-Profit In titution

Out-of- tate In tih1tions D Did ·ot Attend

Source: U .S. Department of

Educanon, D19est of Educanon Scanmcs

2010-11 Undergraduate Degrees

Awarded at SD Public Universities

1000 ~

~

• 900

800 700 600

;oo

400 300 200

100

Source: /Joard ef Re9enu' FYI 2 Face Book

• How are we doing?

Pla ement Study ofBOR Graduates

• 70o/o of D re ident

tudent re1nain in tat after college graduation to work or pursue additional edu ation.

• About 3 of every 10 out-
• f-state students also stay

in at f

• lluwing

graduation .

Fre hn1e11 Migration

• Dis net importer of
• il ge fre hmen (200 data):

~

2, 1 34 freshmen imported

from oth r states;

~

1 , 5 64 fresh1nen left to attend college out of state.

Net gain to SD= 570 students

in

2000, impor / xport ratio ha hift d.

• Default Rates: South Dakota

Students Pay Back Their Debts

Average Loan Default Rate for In titution in the U. .

2007-09 (3-Ye<1rAverages)

All

Proprietary

• uth Dakota

+.90°0 4.50°0 10.30°0 3.+o0o . 'ation 7.; 0°0 4.00°0 1-.;0°0 6.+o0o D's tate Rank 10

31

14 +

South Dakota Postse ondary Institution Loan Default Rates

2006-09

In titution

Type

_006 2007

_

• os

2009 PdYatc 1.88°0 +.00°0 3.30° 0 6.20° 0 PI"op1ietan· 7.1 00 .0000 9. 00 13.50°0 Technical +.31°0 3.90°0 +.20° ,o 6.90°0 Rcgcntal 1.s1°0 2.20°0 2.60° 0 4.00°0

Souru: U .S. Depanment of Education cchorr default rates

• Facing Facts: Public Higher Education

is an Economic Powerhouse

• Publi tmiv r itie in outh

Dakota generate about

$1.97 billion a year in

long-run annual economic impact to

• uth Dakota.
• Public tmiver itie

directly support 5,326 jobs in outh Dakota.

• urce:

USD Government Research Bureau (2010 study based on FY09 data)

Public Universities: Inve tm nt & R turn

Fi al Y ear 2009

/

I

.'tat lnY stm nt I

1

conomic lmpa t

V

176 million 1.97 billio

• The Research Agenda and South

Dakota's Research Centers

Kathryn Johnson, Pr id nt Gary J hn n y tern Vi Pre id nt for Re ear h

Record Levels of University Research Lead to a More Robust State Economy

I 0,000,000 $160,000,000 $140,000,000 120,000,000 I 00,000,000 80,000,000 40,000,000 $20,000,000

• wards
• Expenditures

134,893,278 $33,800,000

FYOO FYOI FY02 FY03

06 FY07 FY08 FY09 FYIO FYU

1n r

arch xp nditur

b tw n FYOO and FY 11 .

• Total expenditures increased from $33 .8 n1illion to 120.1 million.
• Source: Board ef

• Research Expenditures: Still a Big Hill to

Climb for South Dakota

Re ear h & Developm nt E penditur at Univ r itie and Coll ge - FY09

00, 0 700,000,0 0 600,000 000 500 000,000 400,000,000 00, 00,0 0 200, 00,000 100,000,000

S757,74i,OOO S562.569,000 393,611,000 SI i ,70 ,000 SIS! 649 000

.1 I

S 101,-99,000 77,633,000

T I ,-a

M D MT D WY

Source: Xaoonal Snence fuundanon, :!O 11

South Dakota EPSCoR Programs

• 600,000 tate match.
• Historically a 25:1 return on state investment.
• D EP CoR Advisory Committee (REACH) oversees state programs.
• uth Dakota receive EP CoR funding from 4-5 federal agen ie .
• FY10 EPSCoR Awards

$15,994,225 FYll EPSCoR Awards $8,432,597

DOE

• urce: D EP CoR

Research Centers

• Eleven centers established since 2004:
• 5 in third year of

funding

• 5 have graduated
• 1 wa terminated early
• $24.6 million state inve tment to date
• $179 million return on investment
• $258 million economic impact
• Have supported 200+ researchers and 600+ students
• Center for Bloprocesslng

• Future Research Considerations
• nford Undergrotu1d Re earch Facility at Home take

w ph ics Ph.D. d gr

to support futur r s ar ch activiti at th anford lab and nationally;

• D on of onl two stat

without a doctoral-I vel acad 1nic

progra1n in physics.

• M r r

ar h r n d d t ndu t 1n r r r h

• ampu

la k 'b n h tr ngth' in r ar h rank , maxing out

• n abilit to initiat additional r

ar h proj t .

• Emphasi on t chnolog tran £ r and int 11 ctual prop rty

d v lop1n nt

• tate match support for P
• R and P
• R-like program

• Overview of FY13 Budget Request;

Responses to Items of Interest

Jack Warn r Ex utiv Dir ctor

• FY13: Salaries Top Budget Concern
• Top priority: salary policy for

all state employees.

Regents support GoY. Daugaard's plan:

3% salar_- policy;

• % one-time payment.

, Public wliver itie mu t compete in a national market for their talent.

• 1,070,011 to ducate and train

more phy ician and phy ician assistants.

Expand MD program by 4 tudent per e, r ( 16 to till and adds nu-al education track. Funds 5 additional PA student each )·ear 15 total). , rili al n

cJ given st t ,, aging

population .

• 10,623,423 to replace federal
• stimulus dollars.

Federal dollar were plugged into high r du ati n's budg t during th economic downturn. Ongoing budget needs must be met.

83,774 to support £-Learning enter at

U:

Reinstatement of FYl 2 budg t cuts.

• 5,922,158 in on -time funding

for initiatives important to South Dakota' economy.

Workforce deYelopment. tudent succes initiatiYe . , Research projects and infrastructure.

• FY13: One-Time Investments
• GoY. Daugaard pro

po e 5. 9 1nillion in on -tim fund for Board of Regent in FY 13.

• Focu will b on workforc d Y lop1n nt, r

arch initiatiY and student succe s.

• $3 million - Mat h universiti ' contribution to a Performanc

Fw1d pool.

Graduate smdents in high-need workforce areas; Emphasize sp cific academi di ciplin and degre le,· 1 .

• $2 million - Fo t r r

ar h grmvth.

Builds on S920,000 FYl _ inYestment in performance improYem ent a,Yards· Empha i on "ind energ ·, bio-fuel , medical re earch, financial enice , tmderground cience, and material cience engineering .

• FY13: One-Time Investments
• $805,932 - Fund tudent u ce

initiative .

• Refine the Degree Audit tool.

,/ Web-based tool structures student course selection;

../ Place and keep tudents on a quicker path to graduation.

• Pilot new tudent rem di< tion program :

» Math Jam - readies students for college algebra;

tudents who haYe failed college-leYel cour es;

» Eno-lish cademy - improves reading and writing skills;

Co-requi ite Engli h cour e - provides remedial and upplemental in truct:ion, in onjunction with first-year, college-level Engh h course .

• $116,226 -

upportAdvan ed Pla m nt our

d liv ry at

U' C nt r ~

r tat wi E-L c:rning.

Help maintain AP enrollments at current levels; Provide fw1ding for K-12 cohort teacher .

• FY12: One-Time Investments
• Th 2011 L gi latur dir t d 1.

5 million in n -ti1n fund t th Board of R g nt for tud nt succ ss and res arch initiativ s:

• 380,000 - Purcha ing tatevlide arly-alert ' tern that target

student most in need of academic support and g ts them the help they ne d .

• $920,000 - Fund d r search projects at all six campu e · priorit ,

given to:

Projects requiring matching S S in support of federal or prin te research proposals; ew fa ulty tar t-up fm1ds; cientific equipment to enhance capabilities of campus research laboratories.

• S200,000 -

upport d our e d liYer y to D hool di tri t from the U enter for tatevvide E-Learning .

• I

nstitutiona I Faci I ities

• Plant Yalu of m r than 1.

7 billion .

• HEFF (20°/o of tuition) and M&R £

(S6. 3 p r CT dit ar only dedicated fund ource to build and 111aintain academic facilities.

• D i

nl tat in r gi n that pa , for ntir fa iliti tuition.

0 ·t \ ith

• Re idential f, "

liti

built, nd 1n, intain d ·

with rent revenue .

• tudent unions and w llnes facilitie built and maintained ,vi.th

tudent fees .

• tud nt taking 30 CT dit will pay S877.20 to upport faciliti .
• tat appr priati 11 do u1 p rt
• 2. 5 1nillion f recent

1en e laborat r) upgrad & r n v, ti 11 .

• 10-Year Capital Plan (HB 1051)
• Two previous 10-year plans completed (2005 & 2001)·
• Total plant Yalue of academic facilities is 1. 2 billion;
• tem-wid fa ilit) a e ment and tour determined prioritie
• HEFF cash flow projections can support $ 105 million of bonded

projects;

• Major renontions and facility replacement reduce M&R backlog;
• Propo ed plan addr

e 28.6 million infra tructure n ed and S76.4 million on tru tion/renovation;

• Institutions must raise S99.5 million in federal, private, or other

monie.

• Bill includes:
• 172,000 q. ft. ofr noYat d pace·
• 176,000 q. ft. net increa e) of nevv academi

pace;

• 252,000 sq. ft. of new research space

.

Other Facility Authorization in 2012

• nat Bill 45-

Ext nd < ilability f ppr pri ti n t r I la storage [; ciliti s at D U 's

• tton,, ood Agricultural xperimcnt

tati n (auth riz d X

I nditur

fron1 _ 0,00 t S450 000

• enate Bill 46-

Purcha e of airport tructure for u e by

lI

aYiation in tru tion progra1n (S 1 100 000

• enate Bill 4 7-

lncrea es authorized quare footag for n1otor p 1 building at D U (authoriz d XI nditur from _ 4 300 to 304 300

• For More Information

...

South Dakota Board of Regents

306 East Capitol Avenue, Suite 200

Pierre, SD 57

501-2545

Website: www.sdbor.edu E-mail: info@sdbor.edu Phone: (605) 773-3455 Fax: (605) 773-5320