South Dakota Board of Regents Fiscal Year 2020 Budget Hearing Joint - PowerPoint PPT Presentation

South Dakota Board of Regents Fiscal Year 2020 Budget Hearing Joint Appropriations Committee January 28-29, 2019 1

John W. Bastian Kevin Schieffer Jim Morgan Vice President President Secretary Stewardship of Public Higher Education in South Dakota 2 Lucas Lund David Mickelson Pam Roberts Randy Schaefer Jim Thares Joan Wink

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 4 its communities .

Organizational Structure 5

Looking Ahead • Improve student financial aid support • Develop and secure funding for needs-based program such as Dakota’s Promise • Tailor academic programs to workforce development and business/industry needs: • Certificates • Minors • Degrees • Foster educational environments that reflect a broad array of perspectives, which support debate, argument, dissent, and affirmation of differing and 6 diverse opinions, viewpoints, and beliefs.

65 Percent by 2025 • Goal is based on projections that roughly 65 percent of all jobs in South Dakota will require some level of postsecondary education by 2020.  Data from Georgetown University Public Policy Institute’s Center on Education and the Workforce. • 65% goal was adopted by Board of Regents, Department of Education, and the South Dakota Workforce Development Council. 7

Higher Education in South Dakota 8

Higher Education in South Dakota • Attracts and generates income • Draws new and expanded business • Enhances individual wealth 9

Attracts and Generates Income • $270 million in federal money in FY18 • Compares to $211 million from state’s General Fund 10 Source: SDBOR Fact Book 2019

2016 Study: Economic Impact of the South Dakota Public University System $2.66 billion in annual economic impact • generated by South Dakota public universities. From state’s investment of $197 million (FY16) • $162 million in sales and property tax. • 5,628 full-time jobs at SD public universities. • 21,950 jobs created in support of SD public • universities. 11

Draws New and Expanded Business • New Industries & High Paying Jobs • Educated Workforce • Supports Strong Families • Business Expertise • Research Partnerships 12

Enhances Individual Wealth Median Annual Earnings National Median Annual Income By Education Level State Median Annual Earnings $70,000 Linear (National Median Annual $61,000 Income) $60,000 Linear (State Median Annual Earnings) $50,000 $43,000 $42,000 $40,000 $37,000 $40,000 $35,000 $30,000 $29,000 $30,000 $27,000 $23,000 $20,000 $10,000 $0 Less than HS HS Diploma, No Some College, Associate Bachelor's Diploma College No Degree Degree Degree 13 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.

Strengthening South Dakota: Economic, Social, and Human Capital 14 Source: Association of Public & Land-Grant Universities , How Do College Graduates Benefit Society at Large? (2016), available online from http://www.aplu.org/projects-and- initiatives/college-costs-tuition-and-financial-aid/publicuvalues/publicuvalues-resources/q4/GradsSociety.pdf. Philip Trostel, Lumina Foundation, It's Not Just the Money: the Benefits of College Education to Individuals and to Society (2015), available online from https://www.luminafoundation.org/files/resources/its-not-just-the-money.pdf.

Board of Regents’ Goals • Student Success  Increase degree production 15

Programs Fostering On-Time Completion • Reduce 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 16

Dual Credit Enrollments HSDC Enrollments by Semester Type 3,000 2,625 2,500 2,599 2,408 2,000 1,945 1,743 Fall Headcount 1,510 1,500 1,514 Spring Headcount Summer Headcount 1,203 1,000 855 500 346 325 283 255 17 - 2014 2015 2016 2017 2018 Source: BOR Fact Book FY19

Improving System Completion 19% Increase in Total Graduates Since FY11 Total Graduates 6,800 6,664 6,617 6,600 6,487 6,355 6,354 6,400 6,174 6,200 6,000 5,858 5,800 5,599 5,600 5,400 5,200 18 5,000 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Source: BOR Fact Book FY19

Projected Growth in High School Graduates 2019-2032 70% 59% 60% 50% Estimated SD HS Grads 2019: 8,522 40% 30% SD HS Grads 2032: 10,000 17% 20% 13% 9% 10% 4% 4% 1% 0% Iowa Minnesota Montana North Nebraska Wyoming South Dakota Dakota 19 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.

Math Pathways Project Failure to pass College Algebra is one of the top barriers to student completion . • Eliminate College Algebra as the default general education math course. • Create a new general education course in Quantitative Literacy for majors that do not require Algebra or Calculus. • Move students needing remediation into corequisite courses – courses for credit with additional student support. 20

Board of Regents’ Goals • Academic Quality and Performance  Document that academic programs are of the highest quality. 21

Responsive Academic Programming • Rigorous approval process for new programs • Initial Intent-to-Plan request • Formal program approval Board Review & Approval System Review (Board Staff, System Provosts/Presidents, Consultants) Campus Review (Faculty, Departments, Committees, Industry Representatives) 22

New and Terminated Programs Last 3 Years Added Terminated Minors 32 8 Associate Degrees 12 8 Bachelor’s Degrees 22 22 Graduate Degrees 10 7 23 Examples of New Majors: Precision Agriculture, Data Science, Cyber Leadership & Intelligence, Biomedical Engineering

Board of Regents’ Goals • Research and Economic Development  Increase annual research and contract expenditures • Advance knowledge • Enhance technology transfer and commercialization • Catalyze economic development 24

Filling the Workforce Pipeline Preparing South Dakotans for tomorrow’s workforce FY 2018 Degrees from SD Public Universities 1,733 1,279 1,088 581 567 537 458 369 269 25 Source: BOR Fact Book 2018

Filling the Workforce Pipeline: STEM Graduates 33% increase in Undergraduate STEM Degrees STEM degrees 1,400 1,279 since FY13 1,200 1,100 1,086 1,036 1,030 958 1,000 800 600 400 200 - 26 FY13 FY14 FY15 FY16 FY17 FY18 Source: Regents’ Information Systems

Academic Programming for Workforce Development Undergraduate Degrees in High Demand Fields 62% of all bachelor degrees were awarded Health Professions in these fields in FY18 Computer & Information Systems (an increase of more than Accounting 9% since FY13) Engineering Nursing Education & Teaching Business Management & Related Agriculture & Related 0 100 200 300 400 500 600 700 FY18 FY13 27 Source: Regents’ Information Systems

Workforce Development: Where Do Graduates Go? 31% from out-of-state Top SD industries for graduates include: remain in state  ● Health Care and Social Assistance (29%) ● Education (21%) ● Finance & Insurance (6%) 71% from SD ● Professional & Scientific Services (6%) remain in state 28

Research is Job Development • FY18 job creation – Faculty research efforts (FTE): 655.9 • Research innovations – FY07-FY18 • Invention disclosures – 625 • Patent and intellectual property protections filed – 292 • Patents/licenses issued – 184 29 Source: BOR system office

Governor Research Centers Research Funding: $322,821,541 A Snapshot of Success Centers funded: 17 $21,625,239 Funding leverage: 6:1 $48,108,567 Students trained: 1,149 Innovations disclosed: 176 $156,107,582 Patent filings: 71 Patents issued: 17 $96,980,153 License agreements: 25 30 Federal Private RCC Other State

Governor Research Centers and Economic Development • 22 start-up companies affiliated with research centers have:  Created 208 jobs in South Dakota  Received 31 federal small business research (SBIR) awards, totaling $8,129,759  Raised in excess of $23 million in private equity 31

Broader Impacts of the Governor Research Centers on University Research Research Awards in Millions of Dollars $107.6M FY18 Baseline $55.5M (FY05) Technology Transfer 50 44 40 26 30 21 20 12 11 10 3 0 32 Disclosures Patent Filings Licenses FY18 Baseline (FY07)