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

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South Dakota Board of Regents

PRESENTATION TO THE HOUSE EDUCATION COMMITTEE

JANUARY 24, 2020

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STEWARDSHIP OF PUBLIC HIGHER EDUCATION IN SOUTH DAKOTA

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John W. Bastian Vice President Jim Thares Barb Stork Jim Morgan Secretary Lucas Lund Pam Roberts Joan Wink Kevin Schieffer President Randy Schaefer

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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.

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Organizational Structure

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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

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Public Universities Attract and Generate Income

$284 million in federal money in FY19

Compares to $224 million from state’s General Fund

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Source: SDBOR Fact Book 2019

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Governor’s Research Centers

A Snapshot of Success

Centers funded: 18 Funding leverage: 6:1 Students trained: 1,271 Innovations disclosed: 186 Patent filings: 75 Patents issued: 19 License agreements: 25

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$171,394,628 $98,664,433 $51,589,608 $21,945,239

Research Funding: $343,593,908

Federal Private R & C Council State

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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

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Source: BOR system office

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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

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More Education = Enhanced Individual Wealth

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.

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$27,000 $37,000 $40,000 $43,000 $61,000 $23,000 $29,000 $30,000 $35,000 $42,000

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Less than HS Diploma HS Diploma, No College Some College, No Degree Associate Degree Bachelor's Degree

Median Annual Earnings By Education Level

National Median Annual Income State Median Annual Earnings Linear (National Median Annual Income) Linear (State Median Annual Earnings)

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Special Appropriations Requests

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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)

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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

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BOR Highest Priority: Dakota’s Promise

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FY21

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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

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Issues Impacting Public Universities in the Near Future

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Student Aid Critical to Access

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Without Dakota’s Promise – NO HOPE FOR CHANGE Lack of Need-Based Funding per Pell Recipient = High Average Net Cost

$2,620 $2,109 $1,263 $1,081 $863 $562 $27 $17 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Wyoming Minnesota Colorado North Dakota Iowa Nebraska Montana South Dakota

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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

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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.)

Iowa Minnesota Montana Nebraska North Dakota South Dakota Wyoming 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 $18,950 $17,133 $15,281 $18,242 $16,872 $14,404 $26,837 $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 $25,000 $27,500

FY17 Public Postsecondary Education Educational Appropriations and Net Tuition Revenue Per FTE

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State Support Impacts Affordability

FY15 and FY17 tuition freezes, supported by the Governor and Legislature, improved affordability for South Dakota students.

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State support of South Dakota public higher education increased from 41% to 45% over the past six years.

52% 51% 47% 44% 41% 41% 43% 44% 44% 46% 44% 45% 48% 49% 53% 56% 59% 59% 57% 56% 56% 54% 56% 55% 30% 35% 40% 45% 50% 55% 60% 65% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

General Student Source: BOR Fact Book FY20

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Board of Regents’ System – Despite the Challenges, We Are Working Hard to Help Students Afford A University Education

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+ $1,987

Reduction from 128 to 120 credits

+ $1,490

Two fewer courses/ Exploratory Studies

+ $1,800

Three high school dual credit courses

Potential Savings of $5,277

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Dual Credit Enrollments – Great for Students

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2,173 2,590 3,446 3,749 3,947 1,632 2,307 3,012 3,787 3,743 352 371 429 478 388 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2015 2016 2017 2018 2019

HSDC Course Enrollments by Semester

Fall Enrollments Spring Enrollments Summer Enrollments Source: BOR Fact Book FY20

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Dual Credit Enrollments = Tough on the Budget

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Source: BOR Fact Book FY20

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Some Good News!

Improving Degree Completion

5,599 5,858 6,355 6,174 6,354 6,617 6,487 6,664 6,921 4,500 5,000 5,500 6,000 6,500 7,000 7,500 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

23% Increase in Total Graduates Since FY11

Total Graduates

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Source: BOR Fact Book FY20

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Improving Degree Completion – Continued Good News

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Source: BOR Fact Books

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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

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Source: Fact Book

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Enrollment in Recent Years – Flat Over Time

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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.

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Good News for South Dakota: Projected Growth in High School Graduates 2019-2032

4% 1% 9% 59% 4% 13% 17% 0% 10% 20% 30% 40% 50% 60% 70% Iowa Minnesota Montana North Dakota Nebraska Wyoming South Dakota

Estimated SD HS Grads 2019: 8,522 SD HS Grads 2032: 10,000

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The Challenge of Salary Competitiveness

0% 2% 4% 6% 8% 10% 12% FY15 FY16 FY17 FY18 FY19

Turnover

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Funding University Maintenance & Repair

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$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Historical M&R Funding

General Funds HEFF M&R Fee

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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-
ffices/infogovtrelations/Pages/Free-Speech-Intellectual-

Diversity-Efforts.aspx

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