South Dakota Board of Regents

1. South Dakota Board of Regents Public Higher Education:Charting a Course for the Road Ahead

2. 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.

3. Board of Regents’ Strategic Goals • 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. • 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.

4. Board of Regents’ Strategic Goals • Economic Development & Quality of Life • Promote growth of research 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 • Monitor and benchmark 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. • Tuition and fees • Required credits to degree • Need-based and merit aid • Average debt load

5. Strategies to Build the Pipeline of Young Workers in South Dakota • Retain more students in college; • Educate more non-traditional-aged students (we currently have 113,496 South Dakota citizens who have completed some college, but no degree); • Enroll and graduate more students from low-income families; • Re-enroll 2,657 students who left college without a degree in the last 5 years; • Attract more non-resident students to our universities than those we send out of state (for a net in-migration); • 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.

6. As a State, We Are Making Progress to Enroll More Students. . . • A record number of students arebeing servedby SD publicuniversities, atthe same timethat K-12 enrollmentsare declining. Source: Board of Regents’ Fact Book Fiscal Year 2009

7. . . . 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 Source: Board of Regents’ Fact Book Fiscal Year 2009

8. 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 State Economic Development

9. 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. Source: SD Department of Labor

10. 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. Source: SD Department of Labor

11. South Dakota Wages Rise As Educational Attainment Increases South Dakota Wages by Hiring Preference Levels Source: SD Department of Labor

12. 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 2010 Centers’ Grant Activity FY05-09 (in millions of dollars) Source: Board of Regents

13. South Dakota: Record Levels of University Research Under Way Total $23.63 million • 57% increase in expenditures between FY00 and FY08. • Total expenditures increased from $33.8 million to $78.6 million. Total $ 47.62 million Source: Board of Regents CES: Cooperative Extension Service; AES: Agricultural Experiment Station 13

14. Higher Education Budgeting 101 • State tax dollars support $170.9 million, or 26%, of the $652.7 million public higher education budget. Source: Board of Regents, 2009

15. State-Funded FTE Remains Constant • At the same time that student headcount is up 17%. Source: Board of Regents, 2009

16. Appropriations of State Tax Funds for Postsecondary Education Operational Expenses for Higher Education Per Capita—FY 2008 Source: Board of Regents’ Fact Book Fiscal Year 2009

17. 10-Year History of Increases in General Fund Appropriations to Board of Regents Source: Board of Regents, 2009

18. Declining State Support Drives Up Tuition. . . and Limits Access to Lower-Income Students Source: Board of Regents’ Fact Book Fiscal Year 2009

19. 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.

20. A Track Record of System Efficiencies • Serving 3,200 non-traditional students through distance and off-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.

21. 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.

22. 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 off-campus 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.

23. 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.

24. Board of Regents’ Members & Officers • Terry Baloun, President16979 Ellisville AvenueSeneca, SD 57473 • Kathryn Johnson, Vice Pres24054 Palmer Gulch RoadHill City, SD 57745 • James Hansen, Secretary216 N. Pierce AvenuePierre, SD 57501 • Melanie Jeppesen3638 5th Street #217Rapid City, SD 57701 • Harvey JewettP.O. Box 1036Aberdeen, SD 57401 • Dean Krogman218 State AvenueBrookings, SD 57006 • Randy Morris216 Flintlock CircleSpearfish, SD 57783 • Carole Pagones3612 S. Bahnson AvenueSioux Falls, SD 57103 • Randy Schaefer730 S. Washington AvenueMadison, SD 57042