- Overview Presentation - FY14 - BOR Friday, January 25, 2013 1:26 PM South Dakota Board of Regents Fiscal Year 2014 Budget Hearing Joint Appropriations Committee January 28·29, 2013
Public Higher Education in South Dakota South Dakota Board of Regents - 2013 • Kathryn Johnson • Terry Baloun, Seneca Hill City, President • James Hansen, Pierre • Dean Krogman • Harvey Jewett, Aberdeen Brookings, Vice President • Randy Morris, Spearfish • Randy Schaefer • Carole Pagones, Sioux Falls Madison, Secretary • Patrick Weber, Montrose Ja ck Warne r, E xecut ive Director and CE O jack.warner@sdbor.edu (605) 773-3455
What is our challenge? • Delivering a Career-Ready and Job-Ready Workforce • Strengthening Economic Development through Research
38o/o of Educational Costs and 21 ° /o of Total Public Higher Education Budget Supported by State Tax Dollars Board of Regents All Funds by Funds Source Fiscal Year 2013 $805,252,501 Room & Board $35,773,282\ Ge neral Funds 5% $167,851,167 Ot her 21% $1 45,01 9,913_ 1 8% Federal Restricted School & Public $210,376,451 Lands 26% $1,918,043 0. 2% A"pp r $10,793,774 Source: BOR system office 1%
Workforce Development Unique demographic challenges for South Dakota Projected Change in SD Population by Age Group: 2000 - 2030 100,000 80 . 0% 7 1% 80,000 60.0% 60,000 40.0% 40,000 Number 20,000 20.0% -36,226 0 Percent 0.0% -20,000 -20.0% -40,000 -17.6% -60,000 -40.0% 0-18 18-24 25-44 45-64 65+ Source: U.S. Census Bureau, State I nter im Population Projections, 2005
~ ~ ~ - ~ - ~ 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 have declined, then leveled. K-12 Enrollment Public University Enrollment 40 , 000 ....-------------- 134 , 000 30 , 000 t~ 35 , 000 +----------- ;;::::: ::=== =~~ === - ,::::;;"= =- 132 , 000 130 , 000 128 , 000 25 , 000 126 , 000 20.000 +-------------- 124 , 000 +------------~~ ........ ~=~-- 122 , 000 -l------____::l 15 , 000 10.000 +-------------- 120 , 000 ------ 118 , 000 5, 000 +-------------- 116 , 000 114 , 000 +---~-,-----,---~----r~~ ..,,.,,...,. ... ,.,. ~ " ~, :', <->- b , ~ Sources: BOR Fact Book FY 2013; South Dakota Deportment of Education
Postsecondary Placement of High School Graduates in South Dakota • Regental System Technical Institutes Private/ For-Profit Institutions • Out - of -State Institutions Did Not Attend Technical Institutes 14% Priv ate/For-Pr ofi t Institutions 9% Source : U.S. Department of Education , Digest of Education Statistics
System Productivity • How are we doing? Steady growth in student enrollment, completions Graduate and Enrollment Growth Since FYOS F YOS FY06 FY07 FY08 FY09 FY10 FY11 FY12 % Growth 23,534 24,089 24,144 24,512 24,926 25,468 26,625 26,720 14% 387 398 451 401 423 419 432 413 7% Graduates - Bachelor 3,235 3,329 3,463 3,604 3,794 3,656 3,824 3,986 23% Graduates - Total 4,005 4,217 4,075 4,256 21% 3,622 3,727 3,914 4,399 Over this time period , the public university system averaged 111 new graduates per year. Source: Regents' Information Systems
~ ~ ~ ~ ~ ~ ~ ~ ~ Workforce Development Filling the workforce pipeline: 2011-2012 Degrees from SD Public Universities 1,600 1,400 -'---,-----,___ ------------------------ 1,200 1,000 800 600 400 200 0 -~....,__-.--~....,__-.--~....,__--,.-~....,__--,.-~....,__--,.-~....,__-,-~~-,-~~-,-~~_, ,._e d' ~" e" e" . " ~o "" ~o ~" :,,,,o fl, ~c; - ~fl, ~.;:; ~<:' . .;:; ~<:' • ~7> ~e" '->i)q; (;7, c)~ ov <ov ,._,c; ~7> ~,._o '!,.fl, Q'c.; -~ v,r, -<:-.::; ~.::; "?-¢c o-7> ~;s- ,t.._V..-~ '->o fo (. :>"7> '-> '<:'q,7> \>' Source : Reg ents' lnfo rm otion Sys tems
Default Rates: South Dakota Students Pay Back Their Debts Average Loan Default Rates for Institutions in the United States 6.4% 5.2% 12.6% 4.8 % South Dakota Nat i on 8.2% 4.5% 13 .2% 7.2% SD State Rank 15 32 31 7 South Dakota Postsecondary Institution Loan Default Rates 2006-2010 Pri vate 1.9% 4.0% 3.3% 6.2% 6.1% 4.3% Propr i etary 7.2% 8.0% 9.4% 13.5% 14.9 % 10 .6% Technical 4.3% 3.9% 4.2% 6.9% 10 .8% 6.0% Source : Regenta l 1.8% 2.2% 2.6% 4.0 % 5.2% 3.2% U.S . Department of Education All Types 3.0 % 3.8% 4.3 % 6.5% 8.5 % 5.2%
Workforce Development • Attracting and retaining a future workforce 2012 Freshmen Migration Study South Dakota is a net importer of college fresh • 2,288 freshmen i mported from ot h er states • 1, 458 freshmen lost to ot h er states • Net gain to South Dakota = +830 students • Import-to-export ratio has improved steadily since 2000 Ga in to SD im proved by nearly 46% be tw een 2008 and 2010 • Placement Study of Public University Graduates 73% of South Dakota resident students remain in state after college to work or pursue additional education 32 % of out - of -state students also stay in the state following graduation Sources: BOR Placemen t St udy, 2012 ; BOR Student Migration A na l ysis , 2012
Benefits of Higher Education Benefits to t he individual Un employment and Earnings by Educational Attainment, 2011 (US) $80,927 Doctoral Degree 2. 5%- $86,876 Profe ssi onal Degree 2.4%- $65,900 3.6%- M as te r' s Degree $54,943 Bachel or 's Degree 4.9%- $40,072 Associate's Degree 6.8% $37,516 8.7% Some Co llege, No Degree $33,289 9.4% High Sc h oo l Dipl oma 14 . 1% < High Sc h oo l Diploma $23,532 ,--- -~- so $25,000 $50,000 $75,000 $100,000 16% 12% 8% 4% 0% • Unemployment Rates, 2011 • Med ian A nnu al Ea rning s, 2011 Source: U.S . Bureau of Lobar Statistics, Current Population Survey
~ ~ ~ ~ Wage Premiums: The financial value added of higher education South Dakota Median Income by Field of Study and Degree Level N 0 $90,000 .... ... O' $80,000 570,000 N $60.000 M "' "l N ... N S!i0,000 as 0 .... $40,000 f8 '° ~ 0:, .... 0 -N $30,000 $20,000 $10,000 $0 +-' _ __ ......,_ ~"' ;;J" () I\,~~ fl>"' ~\ i> "" • High School • Associate Bt1c helor Grad/ Prof So u rce: U.S. Census Bure au -A merican Comm unity Su rve y {2006-2010 5-Yr Est. )
Where is the thin ice? • Access and Affordability
~ Access and Affordability • State investment in postsecondary education Moderates tuition and fees Assists students wi th scholarship aid Leads to greater access to benefits for students with limited means Undergraduate Resident- Average Student Loan Debt FY13 Tuition & Fees as a Part of South Dakota System 2011 National Average: $26,600 Total Cost $30,000 a a Tuition To t al C ost $2 4,986 $24 143 18,000 $25,000 $23,0 52 ' 16,000 $20.300 $20,775 14,000 $20,000 $17,472 12,000 $15,022 $15,000 10,000 8,000 $10,000 6,000 4,000 $5,000 2,000 0 $0 MT ND WY SD l-\ )11:: 1998·99 2001- 02 2004-05 2007-08 2009·10 2010-11 2011·12 Source: BOR Fact Books
Limited State Support Puts Pressure on Tuition to Fill Funding Gaps The connection between state funding and cost to students Appropriat i ons P er FfE Net Tuition R even ue Per FfE FY I 1 P ublic P ostsecondary FYI 1 P ublic Po s tsecondary Education Edu c ation 8, 000 7 436 16 , 000 6, 608 6' 971 13 , 945 7, 000 6, 379 1 4,000 6, 000 12,000 4, 774 5,1 75 5, 000 10 , 000 3, 784 7, 345 8, 000 4,000 6, 290 6,492 4, 63 1 4, 818 4, 884 5, 221 6, 000 3, 000 1,794 4, 000 2, 000 I 2, 000 1, 000 MT SO IA MN US NO NE WY WY NE US MT NO SO IA MN Sourc e: SH EEO State Higher E du ca ti on Fin ance (S HEF ) R e po rt, 20 11 (SHEF doto odju5 ted for enrollment mix ond cos t of liv ing, so numbers will differ fro m BOR F act B ook}
~ Today's Reality Declining state support dr ives up tuition and fees ... and limits access for lower - income students 70% 65% I o" , o - 60% v-- ::J /"l O __., .... 55% --- .,,- -- 50% --........ ""-- ,...... -..... I',...._ - 45% 43 % 40% 35% ......... %- · 30% FYOl FY02 FY03 FY04 FY05 FY06 FY07 FYOS FY09 FYl O FYl l FYl 2 - State Support % State support of South Dakota public higher - Student Support % educati on has dropped from 57% to 38% in 11 years. source: BOR Foct Book FY 2013
Funding Distribution for Higher Education Salaries State currently funds only 36.2% of all higher education salaries Fund Sourc es for Salary Policy Room/ Board 2% her f General 10% Federal Tu iti on / Fees Tu ition/ Fees 37% • Other Room/Board Source: BOR system office
Salary Package Drives Up Tuition and Fee Increases to Students Tuition and fees must be increased to maintain base operation Salary Increase of 3% and health insurance increase of 24.3% = $1,542 cost increase per benefit eligible employee Purchasi ng power - inflation of 2.95% Preliminary Estimates Tuition & Fee Salary Policy and Health Insurance Cost Increase Tuition $3,433,164 Fees $1,691,312 Subtotal $5,124,476 3.6% 2.95% Inflation on OE Tuition $277,226 Fees $867,128 General Funds $491,697 Subtotal $1,636,051 Total Cost to Students $6,760,527 5.0% Sou rc e: BOR system office
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