South Dakota Board of Regents Fiscal Year 2018 Budget Hearing - PowerPoint PPT Presentation

South Dakota Board of Regents Fiscal Year 2018 Budget Hearing Joint Appropriations Committee Sen. Larry Tidemann Rep. David Anderson Chair Chair January 31 – February 1, 2017 Sen. John Wiik Rep. Jean Hunhoff 1 Vice Chair Vice Chair

John W. Randy Schaefer Bob Sutton Kevin Schieffer Harvey C. Jewett Bastian President Vice President Secretary Stewardship of Public Higher Education in South Dakota 2 Kathryn Johnson Jim Morgan Pam Roberts Conrad Adam

Board of Regents’ Vision • Randy Schaefer, President 3

The 2020 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 . 4

65 Percent by 2025! • Goal is based on projections that roughly 65 percent of all jobs in our state will require some level of postsecondary education by 2020.  Data from Georgetown University Public Policy Institute’s Center on Education and the Workforce. 5

Projected Revenues from Meeting 65% Goal $120,000,000 $107,600,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 6 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 State Revenues Source: NCHEMS; CLASP

Growth in Economic Impact Annual economic impact of the state’s public universities has grown by 35 percent since 2010! • 2016 • SD public universities generate about $2.66 BILLION in annual economic impact to South Dakota. • 2010 • SD public universities generate about $1.97 BILLION in annual economic impact to South Dakota. 7 S ource: The Economic Impact of the SD Public University System, November 2016

University System and Special Schools 8

Regents’ Mission Includes Schools Serving Special K-12 Populations in South Dakota • South Dakota School for the Blind & Visually Impaired • Aberdeen campus • Meets educational needs of students birth to 21 who are blind, visually impaired, or multi- handicapped. • Curriculum blends academic coursework and expanded core curriculum skills to address each student’s individual learning modes and achieve his/her maximum independence. • Statewide outreach • Outreach vision consultants provide information, recommendations, and assistance to students, families, and educators across the state. 9

Regents’ Mission Includes Schools Serving Special K-12 Populations in South Dakota • South Dakota School for the Deaf • Statewide outreach • Comprehensive educational evaluations and assistance with instructional design, serving children, parents, and teachers across South Dakota. • Bilingual deaf education program offered through contract with Harrisburg School District. 10

SDSD/SDSBVI Teachers’ Salary Increase LRC Budget Briefing, Pages 49-52 • Amount needed to match public school teacher increase from last year • South Dakota School for the Deaf - $59,508 • South Dakota School for the Blind & Visually Impaired - $86,985 11

Higher Education in South Dakota 12

Higher Education • Attracts income • Generates income • Attracts business • Enhances individual wealth 13

Attracts Income • $272 million in federal money in FY16 • Compares to $197 million from state’s General Fund 14 Source: SDBOR FY2017 Fact Book

Economic Impact of the South Dakota Public University System • Study Sponsors • SD Board of Regents SD Chamber of Commerce & • Industry • Research Team • Michael Allgrunn , Associate Professor of Economics, USD Travis L. Letellier , Visiting Assistant • Professor of Economics, USD Joslynn Clauson , Research Assistant • 15

Generates Income • $2.66 BILLION • South Dakota public universities generated about $2.66 billion of annual economic impact to South Dakota. • State’s investment was $197 million in Fiscal Year 2016. 16 S ource: The Economic Impact of the SD Public University System, November 2016

Generates Income • $162 MILLION • Sales and property tax revenues due to economic activity generated by the public universities. 17 S ource: The Economic Impact of the SD Public University System, November 2016

Generates Income • 5,628 full-time jobs • Public universities directly supported 5,628 jobs in South Dakota. • 21,950 other jobs • Other South Dakota industries generated 21,950 jobs as a result of the state’s public universities. 18 S ource: The Economic Impact of the SD Public University System, November 2016

Attracts Business • Workforce • Family benefits • Social and economic climate • Business expertise 19 • Research partnerships

Milken Institute Study on Economic Development A Matter of Degrees: 20 The Effect of Educational Attainment on Regional Economic Prosperity

Milken Institute Study A Matter of Degrees: The effect of educational attainment on regional economic prosperity • Key findings: • Education increases regional prosperity. • Better educated, bigger benefits. ’ 21

Enhances Individual Income Median Lifetime Earnings in Millions $4.0 +275% $3.648 M $3.5 +234% $3.252 M $3.0 +175% $2.671 M $2.5 $2.268 M +133% $2.0 +78% $1.727 M $1.547 M $1.5 +59% $0.973 M $1.0 $0.5 $0.0 Less than HS Some College Associate Bachelor's Master's Doctoral Professional 22 22 Source: Georgetown University, Center on Education and the Workforce. (2011). The college payoff: Education, Occupations, Lifetime Earnings. Retrieved from file:///C:/Users/tasha.dannenbring/AppData/Local/Microsoft/Windows/INetCache/IE/QG3X22NQ/collegepayoff-complete.pdf Note: Salary wage calculations based on median earning data, numbers in millions..

New U.S. High-Paying Jobs by Degree Level 2010-2014 (in Thousands) 3,500 2,800 2,500 1,500 500 152 -39 -500 23 Bachelor's Degree or Some College or High School or Less Higher Associate Degree Source: Georgetown University Center on Education and the Workforce (2015). Good Jobs are Back: College Graduates are First in Line

Impact of Education on Income States by Income and Education, 2013 45% Percent with Bachelor’s Degree or Higher 40% 35% 30% 25% 20% 15% SD 10% 24 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Per Capita Income, 2013 Source: US Census Bureau, American Community Survey, 2013

Strengthening South Dakota Its Economic, Social, and Human Capital 25 Source: The College Board (2013). Education Pays ; Institute for Higher Education Policy (1998). Reaping the Benefits: Defining the Public and Private Good of Going to College

Board of Regents’ Goals • Student Success  Increase degree production 26

Strategies to Achieve 65% Goal by 2025 Examples: • Enact proactive admission • Increase first-year enrollment of traditional-age students • Marketing campaign for non-traditional students and students with prior credits • Increase use of Prior Learning Assessment • College Application Week 27

Programs Fostering Early Completion • “15-to-Finish” models • Reduce credit-hour graduation requirement from 128 to 120 • Co-requisite remediation models • Exploratory Studies – Reduce “catalog wandering” • Redesign General Education & transfer frameworks 28

Dual Credit Enrollments HSDC Enrollments by Semester Type 3,000 2590 2,500 2173 2307 2,000 1632 1,500 1,333 1,000 371 500 352 0 29 2014 2015 2016 Fall Enrollments Spring Enrollments Summer Enrollments

Dual Credit Grades High School Dual Credit Program Grades by Percentage 2.3% 2.4% 3.1% 0.2% A 8.9% B C D F 53.8% 29.3% W Other Success Rates ABC Rate: 92 percent since HSDC program started DFW Rate: 8 percent since HSDC program started 30 Increase in Success Rates: Fall 2016 Semester ABC Rate: 94 percent

Affordability Measures Pay Off • Reduction of credit hours required for degree • Governor’s Dual Credit Program • Exploratory Studies Savings = 17% $32,000 $30,000 6% Total Tuition & Fees for B.S. Degree 5% $28,000 2% 4% $26,000 $24,000 $22,000 $20,000 31 128 Credits 120 Credits 120 Credits w/Exp. Studies 120 Credits w/ 1 dual credit course 120 Credits w/3 dual credit courses

Improving System Completion 18% Increase in Total Graduates Since FY11 Total Graduates 6,800 6,614 6,600 6,355 6,346 6,400 6,172 6,200 6,000 5,858 5,800 5,599 5,600 5,400 5,200 32 5,000 FY11 FY12 FY13 FY14 FY15 FY16

At-Risk Student Completions 1.7% 3,000 2,641 2,500 2,343 2,000 30% 34% 1,500 1,342 1,320 1,287 990 1,000 12% 500 145 108 33 0 Amer.Ind Nontrad Underprepared Low Income FY11 FY16

Projected High School Graduates 10,500 10,000 10,000 9,391 9,500 9,000 8,500 8,000 7,500 34 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.