Transcript Slide 1

South Dakota Board of Regents
Public Higher Education:
Charting a Course for the Road Ahead
Meeting the Challenge
The Board of Regents has targeted four strategic public policy goals
to meet the challenge of educating more South Dakotans and
enhancing the state’s research enterprise.
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Board of Regents’ Strategic Goals
1.
Educational Attainment
 Continuously improve
preparation and align high school
standards with college-ready
expectations.
 Increase college participation
rates.
 Improve completions, i.e.
increase retention rates, increase
the number of graduates by at
least 411 each year, and close
achievement gaps.
 Keep our graduates in state.
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2.
Academic Quality &
Performance
 Review academic degree
programs for quality,
responsiveness, and productivity.
 Promote high standards for
student learning, quality
instruction, and research.
 Encourage student engagement
in research and service.
 Create employer feedback
mechanisms.
 Expand use of technology to
enhance learning.
Board of Regents’ Strategic Goals
Economic Development
& Quality of Life
3.
 Promote growth of research
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initiatives.
Expand graduate education.
Contribute to economic
development through
technology transfer & incubation
of new commercial ventures.
Contribute to workforce
development & quality of life by
expanding academic programs to
meet future workforce needs,
offering off-campus and online
programs, and creating
corporate training partnerships.
Encourage entrepreneurship.
Effectiveness & Efficiency
4.
 Monitor and benchmark
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cost/price per graduate.
Monitor and benchmark
financial indicators.
Review under-productive
programs for improvements,
consolidation, or elimination.
Streamline administrative and
academic organizational
structures.
Review facilities and space
utilization.
Keep the system affordable.
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Tuition and fees
Required credits to degree
Need-based and merit aid
Average debt load
Strategies to Build the Pipeline of
Young Workers in South Dakota
 Retain more students in
college;
 Educate more nontraditional-aged students
(we currently have 113,496
South Dakota citizens who
have completed some college,
but no degree);
 Enroll and graduate more
students from lowincome families;
 Re-enroll 2,657 students
who left college without
a degree in the last 5 years;
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 Attract more non-
resident students to our
universities than those we
send out of state (for a net inmigration);
 Grow our graduate
education and research
programs, to support
economic development in
South Dakota and make our
state more attractive to
students planning their future
careers.
As a State, We Are Making Progress to
Enroll More Students. . .
 A record
number of
students are
being served
by SD public
universities, at
the same time
that K-12
enrollments
are declining.
134,000
35,000
132,000
30,000
130,000
25,000
128,000
126,000
20,000
124,000
15,000
122,000
120,000
10,000
118,000
K-12 Enrollment
5,000
116,000
114,000
0
1997
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Public University Enrollment
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Source: Board of Regents’ Fact Book FiscalYear 2009
. . . but There is Much More to Do
 Ensure higher education remains affordable for all citizens.
 Carefully manage tuition and fee increases.
 South Dakota is the only state without a needs-based financial
aid program to increase low-income college participation.
Undergraduate Resident—FY09 Total Cost
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Source: Board of Regents’ Fact Book FiscalYear 2009
Our Challenge is Clear
 Educate more South Dakotans and graduate
more of them with college degrees.
Positive impact
State Workforce Development
 Enhance and build the research enterprise at
South Dakota’s six public universities.
Positive impact
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State Economic Development
Why is Higher Education So Important to the
Future of South Dakota?
 Occupations requiring some type of postsecondary
education in SD will grow by 15.9%, generating more
than 68,000 job opportunities, from 2006 to 2016.
South Dakota Occupations
for Which a Bachelor’s
Degree is Preferred
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Average
Annual
Demand
2008
Average
Wage
Accountants and Auditors
174
$24.60/hour
Secondary School Teachers
134
$37,227/year
Elementary School Teachers
121
$36,270/year
Middle School Teachers
66
$38,767/year
Computer Software Engineers,
Applications
50
$34.33/hour
Source: SD Department of Labor
Higher Levels of Education Also Mean
More High-Wage Occupations
 85% of today’s jobs are classified as “skilled.”
 60% of future jobs will require training that only 20% of
today’s workers possess.
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South Dakota Occupations for Which a
Bachelor’s Degree is Preferred
2008 Average
Hourly Wage
Securities, Commodities, & Financial Services
Sales Agents
$65.26
Architects
$42.09
Computer Software Engineers, Systems Software
$39.16
Sales Engineers
$34.66
Computer Software Engineers, Applications
$34.33
Atmospheric and Space Scientists
$32.61
Source: SD Department of Labor
South Dakota Wages Rise As
Educational Attainment Increases
South Dakota Wages by Hiring Preference Levels
Hiring Preference
Short-term On-the-Job Training
$21,329
Work Experience
$34,651
Associate Degree
$41,278
Bachelor’s Degree
$45,289
Master’s Degree
$54,543
Doctoral Degree
$64,586
First Professional Degree
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2009 Average
Salary in
South Dakota
$121,345
Source: SD Department of Labor
Research Pays Off in Economic Impact
Six 2010
research centers
• $18.6 million
state investment
garnered $59.5
million in
federal, private,
and other state
revenue
• Result: $111
million
economic
impact to South
Dakota, based on
a conservative
model
•
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2010 Centers’ Grant Activity FY05-09
(in millions of dollars)
Source: Board of Regents
FY00 Expenditures from Grants and Contracts
South Dakota:
Record Levels of
University Research
Under Way
$ (in millions)
USD
$5.93
18%
SDSMT
$5.58
17%
Total
Total
$33.8 million
$23.63
million
SDSU
$7.91
24%
Medical
School
$5.56
17%
BHSU
$1.69
5%
DSU
$1.34
4%
AES
$4.14
12%
CES
$0.05
0%
NSU
$1.18
3%
FY08 Expenditures from Grants and Contracts
• 57% increase in expenditures
between FY00 and FY08.
• Total expenditures increased
from $33.8 million to $78.6
million.
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Source: Board of Regents
CES: Cooperative Extension Service; AES: Agricultural Experiment Station
$ (in millions)
SDSU
$14.96
19%
USD
$13.58
17%
Medical
School
$18.34
23%
SDSMT
$11.75
15%
Total
$ 78.6
million
Total
$ 47.62 million
BHSU
$4.00
5%
AES
$11.13
14%
DSU
$2.00
3%
NSU
$1.33
2%
CES
$1.53
2%
Higher Education Budgeting 101
 State tax dollars support $170.9 million, or 26%, of the
$652.7 million public higher education budget.
Board of Regents FY10 Operating Budget
All Funds by Fund Source
$652,763,126
Other Funds
$266,867,879
41.9%
Tuition
$56,232,149
8.6%
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General
$170,902,101
26.2%
Federal
$158,760,997
24.3%
Source: Board of Regents, 2009
State-Funded FTE Remains Constant
• At the same time that student headcount is up 17%.
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Source: Board of Regents, 2009
Appropriations of State Tax Funds for
Postsecondary Education
Operational Expenses for Higher Education Per Capita—FY 2008
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Source: Board of Regents’ Fact Book FiscalYear 2009
10-Year History of Increases in General
Fund Appropriations to Board of Regents
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Source: Board of Regents, 2009
Declining State Support Drives Up Tuition
. . . and Limits Access to Lower-Income Students
70%
60%
State Support
50%
40%
Student Support
30%
20%
10%
0%
State support of SD public
higher education dropped
from 59% to 49%
in 10 years.
FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
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Source: Board of Regents’ Fact Book FiscalYear 2009
A Track Record of System Efficiencies
Recent Examples:
• Created 9 new Ph.D. programs to grow research in SD
through $5 million internal reallocation of funds.
• Doubled external research funding in 7 years.
• Stretching state dollars to make them go farther:
 No inflationary funds received on state operating expense base since FY98;
result is a loss of $3 million in purchasing power;
 No new state dollars to support growth of over 1,000 FTE state-support
students; result is a shortfall of $2.4 million in state funding.
• Historical all-time record high number of students and adult
learners served.
• Conducted review of low-enrolled course sections; recently
launched similar review of low-enrolled degree programs.
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A Track Record of System Efficiencies
• Serving 3,200 non-traditional students through distance and off•
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campus delivery without state funding support.
Doubled investment in facilities’ maintenance; students pay 100%
of facility maintenance, a $6.5 million annual investment.
Narrowed the salary competitiveness gap to within 5.3% of
regional averages.
Moved billing and payment processes online.
Cut 47.8 FTEs, redirected 5% in general funds, and eliminated
small-section courses to create a $10 million pool of resources to
support efficiencies and reduce costs through technology,
cooperation, and collaboration.
A Track Record of System Efficiencies
• Foundation/institutional scholarships grew 111% in 8 years.
• Implemented integrated, system-wide finance and payroll
system, with no new state resources requested; also adopted
common business practices across system with this rollout.
• Absorbed $14 million in health insurance rate increases and
$591,000 in annual fleet billings passed on by the state,
without new state dollars.
• Implemented single installation of a centralized learning
management system (Desire2Learn) that supports all public
universities in South Dakota.
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Important Issues Require Attention
 Base Funding Needs
 No inflationary funding for operating expenses, although it was
agreed to fund that when the formula was dropped in 1998.
 Growth in more than 1,000 full-time equivalent students on campus,
for whom the state provides no financial support.
 System serves 3,200 students without state funding support, a record
high. These students receive their education by distance or at offcampus locations in Sioux Falls, Pierre, and Rapid City, totally
supported by their own tuition and fee payments.
 Competition for Talent
 Higher education competes for talent nationally, so the Salary
Competitiveness Program is critical to maintain SD’s position.
 Quality academic programs.
 Competitive graduate programs and stipends.
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Important Issues Require Attention
 Research Funding & Activity
 Long-term need for additional research faculty to increase
public universities’ sponsored research.
 State match for endowed faculty positions.
 Improve Participation of Under-represented
Populations
 Create state program for need-based financial aid.
 Develop unique scholarship programs responsive to state
workforce demands.
 Explore loan forgiveness strategies.
 Native American and Hispanic student initiatives.
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Board of Regents’ Members & Officers
 Terry Baloun, President
16979 Ellisville Avenue
Seneca, SD 57473
 Kathryn Johnson, Vice Pres
24054 Palmer Gulch Road
Hill City, SD 57745
 James Hansen, Secretary
216 N. Pierce Avenue
Pierre, SD 57501
 Melanie Jeppesen
3638 5th Street #217
Rapid City, SD 57701
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 Harvey Jewett
P.O. Box 1036
Aberdeen, SD 57401
 Dean Krogman
218 State Avenue
Brookings, SD 57006
 Randy Morris
216 Flintlock Circle
Spearfish, SD 57783
 Carole Pagones
3612 S. Bahnson Avenue
Sioux Falls, SD 57103
 Randy Schaefer
730 S. Washington Avenue
Madison, SD 57042