South Dakota Board of Regents PRESENTATION TO THE HOUSE EDUCATION - PowerPoint PPT Presentation

South Dakota Board of Regents PRESENTATION TO THE HOUSE EDUCATION COMMITTEE JANUARY 24, 2020 1

John W. Bastian Kevin Schieffer Jim Morgan Vice President President Secretary STEWARDSHIP OF PUBLIC HIGHER EDUCATION IN SOUTH DAKOTA Pam Roberts Lucas Lund Barb Stork Randy Schaefer Joan Wink Jim Thares 2

Mission Statement The South Dakota Board of Regents’ mission is to provide an excellent, efficient, accessible, equitable, and affordable public university and special schools system  that improves South Dakota’s overall educational attainment and research productivity ,  while enriching the intellectual, economic, civic, social, and cultural life of the state, its residents, and its communities . 3

Organizational Structure 4

Higher Education in South Dakota IS the Economic Engine of the State  Attracts and generates income  Draws new and expanded business  Enhances individual wealth  Each university creates an economic circle of influence around it 5

Public Universities Attract and Generate Income $284 million in federal money in FY19 ◦ Compares to $224 million from state’s General Fund 6 Source: SDBOR Fact Book 2019

Governor’s Research Centers Research Funding: $343,593,908 A Snapshot of Success $21,945,239 Centers funded: 18 $51,589,608 Funding leverage: 6:1 Students trained: 1,271 $171,394,628 Innovations disclosed: 186 $98,664,433 Patent filings: 75 Patents issued: 19 License agreements: 25 Federal Private R & C Council State 7

Research is Job Development FY19 job creation – Faculty research efforts (FTE): 655.9 Research innovations – FY07-FY19 ◦ Invention disclosures – 663 ◦ Patent and intellectual property protections filed – 309 ◦ Patents/licenses issued – 196 Source: BOR system office 8

Research and Economic Development Initiatives Responding to the Governor’s request for the “Next Big Thing”  Bio-products Initiative  Collaboration between SDSU and SDSM&T  Will impact how our state does business  Make agriculture and manufacturing a cohesive machine 9

More Education = Enhanced Individual Wealth Median Annual Earnings National Median Annual Income By Education Level State Median Annual Earnings $70,000 $61,000 Linear (National Median Annual $60,000 Income) $50,000 Linear (State Median Annual Earnings) $42,000 $43,000 $37,000 $40,000 $40,000 $35,000 $30,000 $27,000 $29,000 $30,000 $23,000 $20,000 $10,000 $0 Less than HS HS Diploma, No Some College, No Associate Degree Bachelor's Degree Diploma College Degree 10 Source: Measuring the Value of Education, US Bureau of Labor Statistics (2018). Retrieved from https://www.bls.gov/careeroutlook/2018/data-on-display/education-pays.htm. Note: Salary wage calculations based on median weekly earning data multiplied by 52 weeks, rounded to nearest thousand. Source: A.P. Carnevale, J. Strohl, and N. Ridley, Georgetown University Center on Education and the Workforce, Good Jobs that Pay Without a BA: A State-by-State Analysis (2017). Retrieved from https://goodjobsdata.org/wp-content/uploads/Good-Jobs-States.pdf.

Special Appropriations Requests 11

Special Appropriation Requests from Governor Noem  In her proposed budget, Governor Noem requested:  $5 million for construction of a new School of Health Sciences building at the University of South Dakota  $396,000 for the Cyber Incubator and Entrepreneurial Center at Dakota State University  Gov. Noem recommends current fiscal year funds for these projects. Projects were introduced this session as emergency special appropriations:  Senate Bill 40 (USD Health Sciences)  House Bill 1044 (DSU Cyber Incubator) 12

Other BOR Legislation This Session  Authorize SD Building Authority revenue bonds for ongoing maintenance and repair of facilities ($24.5 million in debt financing)  Construction of Facilities Building at USD  Demolition of three storage structures and construction of a Grounds Facility at USD  Renovation of E.Y. Berry Library at BHSU  Renovation of Devereaux Library at SD Mines 13

BOR Highest Priority: Dakota’s Promise FY21 14

Dakota’s Promise Scholarship - $2 million  Needs-based scholarship designed to provide support to eligible students  $2,500 total per year - $1,250 from state with $1,250 institutional match  Pell Grant eligible  ACT score of 22 or higher  High School GPA of 3.0+  First Time, Full Time Freshmen  South Dakota residents  Sponsors will introduce bill this session 15

Issues Impacting Public Universities in the Near Future 16

Student Aid Critical to Access 17

Without Dakota’s Promise – NO HOPE FOR CHANGE Lack of Need-Based Funding per Pell Recipient = High Average Net Cost South Dakota $17 Montana $27 Nebraska $562 Iowa $863 North Dakota $1,081 Colorado $1,263 Minnesota $2,109 Wyoming $2,620 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 18

Net Cost is Hurting Student Opportunity Cost to Educate a Student is Lowest in Region – BUT South Dakota Students Bear a Bigger Burden of the Cost FY17 Public Postsecondary Education Educational Appropriations and Net Tuition Revenue Per FTE $26,837 $27,500 $25,000 $22,500 $18,950 $20,000 $18,242 $17,133 $16,872 $15,281 $17,500 $14,404 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $0 North South Iowa Minnesota Montana Nebraska Wyoming Dakota Dakota Total Funding per FTE $18,950 $17,133 $15,281 $18,242 $16,872 $14,404 $26,837 Funding Per FTE - State $7,835 $7,871 $6,543 $8,959 $9,235 $6,364 $21,649 Funding Per FTE - Tuition $11,115 $9,262 $8,738 $9,283 $7,637 $8,040 $5,188 Source: SHEEO State Higher Education Finance (SHEF) Report, 2017 (Note: SHEF data adjusted for enrollment mix and cost of living, so numbers will differ from BOR Fact Book.) 19

State Support Impacts Affordability FY15 and FY17 tuition freezes, supported by the Governor and Legislature, improved affordability for South Dakota students. 65% 59% 59% 60% 56% 53% 57% 56% 56% 56% 55% 54% 55% 52% 51% 50% 49% 45% 48% 46% 45% 44% 44% 44% 47% 43% 40% 44% 41% 41% General 35% Student 30% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 State support of South Dakota public higher education increased from 41% to 45% over the past six years. Source: BOR Fact Book FY20 20

Board of Regents’ System – Despite the Challenges, We Are Working Hard to Help Students Afford A University Education + $1,490 + $1,800 + $1,987 Two fewer courses/ Three high Reduction Exploratory school dual from 128 to Studies credit courses 120 credits Potential Savings of $5,277 21

Dual Credit Enrollments – Great for Students HSDC Course Enrollments by Semester 4,500 3,787 3,947 4,000 3,446 3,743 3,500 3,749 3,000 3,012 2,590 2,500 2,173 2,307 2,000 1,500 1,632 1,000 371 429 478 500 352 388 0 2015 2016 2017 2018 2019 Fall Enrollments Spring Enrollments Summer Enrollments Source: BOR Fact Book FY20 22

Dual Credit Enrollments = Tough on the Budget Source: BOR Fact Book FY20 23

Some Good News! Improving Degree Completion 23% Increase in Total Graduates Since FY11 Total Graduates 7,500 6,921 7,000 6,664 6,617 6,487 6,355 6,354 6,500 6,174 5,858 6,000 5,599 5,500 5,000 4,500 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Source: BOR Fact Book FY20 24

Improving Degree Completion – Continued Good News Source: BOR Fact Books 25

Creating Affordability: Programs Fostering On-Time Completion Reduced credit-hour graduation requirement from 128 to 120 ‘15-to-Finish’ or ‘Finish in Four’ models Exploratory Studies  reduce ‘catalog wandering’ Co-requisite remediation models Redesign general education and transfer framework 26

Enrollment in Recent Years – Flat Over Time Source: Fact Book 27

Good News for South Dakota: Projected Growth in High School Graduates 2019-2032 70% 59% 60% 50% Estimated 40% SD HS Grads 2019: 8,522 30% SD HS Grads 2032: 10,000 17% 20% 13% 9% 10% 4% 4% 1% 0% Iowa Minnesota Montana North Nebraska Wyoming South Dakota Dakota Source: Peace Bransberger and Demarée K. Michelau. Knocking at the College Door: Projections of High School Graduates, 9th Edition. Boulder, CO: Western Interstate Commission for Higher Education, 2016. 28

The Challenge of Salary Competitiveness Turnover 12% 10% 8% 6% 4% 2% 0% FY15 FY16 FY17 FY18 FY19 29

Funding University Maintenance & Repair Historical M&R Funding $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 General Funds HEFF M&R Fee 30

Measuring Our Progress Ensuring Accountability and Transparency Board of Regents’ Fact Book ◦ www.sdbor.edu/mediapubs/factbook/index.htm BOR Interactive Dashboards ◦ www.sdbor.edu/dashboards BOR Strategic Plan – 17 System Metrics ◦ www.sdbor.edu/theboard/StrategicPlan Intellectual Diversity / Free Speech Report ◦ https://www.sdbor.edu/administrative- offices/infogovtrelations/Pages/Free-Speech-Intellectual- Diversity-Efforts.aspx 31 31