The mission of Black Hills State University is to provide programs in: the liberal arts and sciences, education, human services, wellness, business, travel industries management, and tourism; to complement these programs with a series of preprofession, one-year and two-year
terminal, and junior college programs; and to authorize degrees at the associate, baccalaureate,
and masters level.
The Governor recommends a total appropriation of $52,435,632 and 444.4 FTEs for FY09. The
recommended changes include $404,080 increase from the general fund, $129,042 increase in
federal fund expenditure authority, and $891,859 increase in other fund expenditure authority.
Dr. Schallenkamp said that February 27, 2008, is the kick-off for the 125th anniversary of the
Black Hills State University (BHSU). The university was founded to prepare teachers for the
workplace, and over the years has changed to a multi-purpose university with many majors and
minors. With strategic planning, BHSU transforms the lives of students with academic programs.
Currently, BHSU is the third largest university in the state with 4,004 students enrolled for the
fall of 2007. The university serves the highest percentages of adult learners (32% of
undergraduate students). The top three majors at the university are business, education, and
biology.
Through aggressive efforts of the science faculty, external grants have increased from $519,046
in 1997 to $5,365,060 in 2007. BHSU has received grant funding from a number of agencies
including:
building was built in 1968 and was constructed to serve the needs of the students at that time.
Over the past 12 years, science majors have increased by 310%, and the new building is needed
to provide the physical resources necessary to prepare the students. Currently, the university is
1% below the average space for science students. The university has lost professors and had to
turn down gifts of equipment due to the lack of space. There is also a risk of contamination with
the research projects in the current space.
Dr. Schallenkamp said that there is a high need for the REED network at BHSU. Faculty, staff,
and students are already making plans for the high speed network system and anticipate that the
higher speed network will also open doors for cutting-edge research and a number of economic
possibilities.
To address utility costs, BHSU is taking a leadership role with a campus-wide effort to reduce
energy costs. The university was the first South Dakota university to join the American College
and University President's Climate Commitment. The major addition and renovation to the
Student Union is being designed with several energy efficiencies and has a goal of a Silver
certification from the Leadership in Energy and Environmental Design. BHSU also replaced the
light bulbs across the campus with energy efficient light bulbs, and is reviewing the idea of
installing a wood-fire boiler.
Senator Hunhoff asked about the 275 BHSU students that transfer to nursing. In response, Dr.
Dean Meyers, said that the students get their general education courses from BHSU and then
most students transfer to South Dakota State University (SDSU) to complete the nursing degree.
In response to Senator Apa's question, Dr. Schallenkamp said that 12% of the students enrolled
at BHSU are from Wyoming. The last class decreased by about 50 Wyoming students. There is
the Hathaway Merit Scholarship offered in Wyoming. The colleges in Wyoming now have
endowed funds available for students, which allows Wyoming to cherry_pick the students at
BHSU. The students at BHSU are offered scholarships to attend Wyoming universities.
Dr. Meyers said, in response to Representative Tidemann's question, that about one-third of the
students that attend BHSU receive remedial courses.
In response to Senator Smidt's question, Dr. Schallenkamp said that the university is proud of the
mobile science lab, and featured it in the university's holiday card. The project is going well and
she has received fantastic feedback from the students. With 2009 being the Year of Science, the
university will embrace the concept with great enthusiasm and will promote that science is fun,
important, and able to be performed.
Representative Glenski asked about the reason for the decrease in 2.5 FTEs. In response, Kathy
Johnson said that the food service has changed to a contract and therefore FTEs are no longer
needed.
Dr. Schallenkamp said, in response to Senator Hunhoff's question, that 43% of the BHSU graduates remain in South Dakota. When the graduates from Wyoming are included, the percentage increases to 65% of the graduates remain in the region.
Representative Tidemann asked about the university's retention rate. In response, Dr.
Schallenkamp said that it is important for the university to think about retention. There was an
increase of 8% in student retention for one year. The previous president of BHSU had different
beliefs in retention, and there were changes to the university's retention policy this year. BHSU
will have five special admits this year, which is an admission to the university for a person that
does not meet all the requirements for regular admission. The other issue directly related with
retention is funding.
In response to Senator Smidt's question about federal grants and contracts, Dr. Schallenkamp
said that the university had a grant with the American Indian Health, when the grant transferred
to Sanford Health, the BHSU employee who secured the grant transferred to Sanford Health as
well.
South Dakota School for the Deaf
Mr. Terry Gregersen, Superintendent, said that every child makes a difference in the program.
The mission of the School for the Deaf is to provide statewide services to the sensory impaired
children and youth of the state of South Dakota; to serve in a dual leadership and resource model
in the statewide efforts to meet the educational needs of sensory impaired children from birth
through age twenty-one; and to carry out this mission through cooperative efforts with all
appropriate state agencies, educational cooperatives, local education agencies, colleges, and
universities.
The total recommended budget for this program includes increases of $74,541 from general
funds, $1,743 from federal funds, and $1,789 from other funds. The School's request and the
Governor's recommendation are identical with the exception of the recommended salary policy.
The South Dakota School for the Deaf (SDSD) offers four programs to students. They include:
Currently, there are 364 students that receive services from the Outreach Program. The program
affects 57 of the 66 counties in the state. Last year, there was about 187 students served, and Mr.
Gregerson believes the staff has done a good job identifying the students that would benefit from
the program. To implement this program, the staff members travel a lot, and that is a concern for
retention in the staff position.
SDSD did 900 audiology exams last year. Mr. Gregersen was surprised by the growth in number of students receiving the exams, and attributes much of the success to the method the staff used
to locate the students. He informed the committee that a person may have a profound hearing loss
and be able to interact well in society. There is not another outreach program as large as this, and
it helps prepare students for the real world.
Mr. Gregersen said that he is concerned about the appropriation for energy costs because the
utility costs are increasing. There are no other concerns for other budget areas.
There is a request for additional other fund expenditure authority for the Myklebust Recreational
Center Renovation Project. The Myklebust gymnasium is not going to be condemned but is
salvageable with some redesign and reinforcement of the wall areas. With additional
reinforcement of the wall, the total project cost increased by $32,000 to a total of $424,095.
SDSD has sufficient funding to see the gymnasium renovated so that some sense of history is
preserved at the school. This will allow for normal PE activities and for SDSD to offer
community services as well. The project is slated to be completed by the beginning of the 2008-
2009 school year.
Representative Dennert asked when the last non-resident student was served by SDSD. In
response, Mr. Gregersen said the he thinks it was in 2005, and they have taken from students
Iowa, North Dakota, and Minnesota.
In response to Senator Hunhoff's questions, Mr. Gregersen said that the outreach center now
checks with the hospitals to review the records of students with a hearing loss. From that new
process SDSD has found students that have a hearing loss and were not receiving services. The
SDSD is able to use the DDN to access many of the students at no cost to the state. However, this
capability does not reduce the amount of time the staff is required to travel for the outreach
program.
Northern State University
Dr. Patrick Schloss, President of Northern State University (NSU) introduced Dr. Clyde Arnold,
Provost and Vice President of Academic Affairs; Dr. Tom Hawley, Dean of the School of
Education; and Don Erlenbusch, Vice President for Finance and Administration.
The mission of Northern State University is to serve as a multi-purpose, regional institution of
higher education; to continue to diversify offerings to address the emerging needs of the students,
community, and region; to continue to include teacher preparation as an important feature of the
institutional mission, as well as programs in the arts and sciences, business, and fine arts; to
provide quality teaching and learning through undergraduate and graduate programs; to provide
distance delivery technology in all degree programs, especially all levels of teacher preparation;
to offer students a breadth and depth in the liberal arts and in professional studies to ensure
development of effective and productive professionals and citizens; to create and nurture a
community of students, faculty, and staff; to support communication, student and faculty
research, and professional growth; to design programs to meet academic, social, cultural, and
economic needs of the community and area in order to provide lifelong learning opportunities; to
provide a center for the arts and recreation; and to support regional development.
Dr. Schloss said that NSU is providing a premier residential experience characterized by
outstanding instruction, extraordinary community relations and unparalleled extracurricular
opportunities. Some of the highlights from the last year include:
In response to Senator Hunhoff's question, Dr. Schloss said that students taking courses from the
University of Sioux Falls would be considered self-support students at NSU.
Senator Hunhoff asked about the retention rate of graduates. In response, Mr. Arnold said that
about 80% of NSU graduates remain in South Dakota.
Representative Dennert asked about the limit for the E-learning center. In response, Dr. Hawley
said that a study was performed last summer and it was determined that the E-learning center is
operating at 86% of its capacity. He thinks that NSU could take on more students, but more
students may result in the need to develop another studio or two. A survey was sent to school
districts and it was determined that there is a demand for more Spanish courses because of the
criteria for the Opportunity Scholarship. The survey showed that there is a decline in the demand
for French courses and an increase in the demand for a Spanish III course.
Representative Rausch asked about the remedial courses offered by the university. In response,
Dr. Schloss said that statistics have shown that students with an ACT score of 15 or lower do not
survive the first year of higher education. To offer the higher education opportunity to everyone,
three years ago, NSU began a summer bridge program where people with an ACT score between
12 and 15 were able to attend the summer course and prepare themselves for the school year.
This remedial summer program has become a recruiting tool and families are happy knowing that
their child is receiving the extra help. From this program, one-fourth of the students with lower
ACT scores are finishing the first year.
In response to Representative Tidemann's question, Dr. Schloss said that the university is
completely wireless.
Representative Burg asked about the courses taught in Huron. In response, Dr. Schloss said NSU
hosted two town meetings in Huron, and recently offered three courses there. He has been to
meetings to promote higher education, but the biggest challenge is the enrollment. NSU will
offer a course if they receive permission and enroll a minimum of eight students in the course.
In response to committee questions, Dr. Schloss said that the goals of the Wolf PACT
Scholarship are consistent with the Opportunity Scholarship. A student must maintain fulltime
enrollment (15 credit hours per semester) and 3.0 GPA. If the Opportunity Scholarship criteria
changes, NSU will make any necessary changes and try to maintain consistency between the
Wolf PACT Scholarship and the Opportunity Scholarship. One important aspect of the Wolf
PACT Scholarship is that it is based solely on the students' ACT score, and not family income.
Dakota State University
Dr. Douglas D. Knowlton, President of Dakota State University (DSU), introduced Dr. Cecelia
Whitmeyer, Vice President of Academics, and Stacy Krusemark, Vice President of Business and
Administrative Services.
The mission of Dakota State University is to specialize in programs of computer management, computer information systems, and other related undergraduate and graduate programs outlined in SDCL 13-59-2.2; to place special emphasis on the preparation of elementary and secondary teachers with expertise in the use of computer technology and information processing in the
teaching and learning process; and to offer two-year and one-year programs as well as short
courses for application and operator training in areas authorized.
The Governor recommends a total appropriation of $28,026,294 and 282.0 FTEs for FY09. The
recommended changes include $465,331 increase from the general fund, $221,371 increase in
federal fund expenditure authority, and $517,994 increase in other fund expenditure authority.
In response to Representative Rausch's question pertaining to the REED Network, Dr. Knowlton
said that DSU has the space to house the equipment and the FTEs, but the equipment will need to
be upgraded. The changes for the REED Network are really not an issue of space, but an issue of
temperature. Stacy Krusemark said that these issues are addressed in the Governor's
recommendation. DSU is the core site for the DDN, and this is the only one at the higher
education institutions.
In response to committee questions, Mr. Krusemark said that the REED Network technical
support could be located anywhere, but it best fits with the IT majors at DSU. Currently, DSU
has a program on campus and it will be able to transition FTEs to accommodate the network
support. The original request was to have FTEs located at multiple locations. The Governor
reduced the FTEs and recommended all the FTEs be placed at DSU for economic efficiencies.
There will also be more efficiencies by having the technical support located in one place, and
DSU is the best option.
Dr. Knowlton said that in 2005, an agency was asked to come to the university and estimate the
cost of all upgrades. The total cost of upgrades was $6.4 million. The university placed a HEFF
fund request of $3 million to accomplish part of the M&R projects.
There is a request for an increase in federal funding and other funding expenditure authority to
renovate Beadle Hall. Mr. Krusemark said that project should be completed this summer.
In response to Senator Hunhoff's question, Dr. Cecelia Whitmeyer said that the percentage of
DSU graduates that attend graduate school at DSU is decreasing. The exact number of students
will be presented to the committee.
Representative Rausch asked about the students needing remedial courses at DSU. In response,
Ms. Whitmeyer said that about 18.5% of the students are in remedial math (MATH 021). DSU is
also responsible for the math courses offered at the university centers. Dr. Knowlton said that the
university has experienced tremendous results by creating a pilot program and having students
complete the on-line program. The students' confidence level rose and many students no longer
needed the remedial math after the pilot program.
South Dakota State University
Dr. David Chicoine, President of South Dakota State University (SDSU), introduced Mike
Reger, Executive Vice President for Administration; Carol Peterson, Provost and Vice President
for Academic Affairs; Wes Tschetter, Assistant Vice President of Finance and Business; and
Gary Lemme, Dean of Agriculture and Biological Sciences.
The Governor recommends a total appropriation of $176,099,241 and 1,711.8 FTEs for FY09.
The recommended changes include $1,710,652 increase from the general fund, $6,348,753
increase in federal fund expenditure authority, and $5,060,616 increase in other fund expenditure
authority.
Dr. Chicoine reviewed some of SDSU's highlights:
The Governor's recommendation for a four year increase in funding for M&R is needed. SDSU needs M&R funding for lab renovations. There are also two projects that need renovations _ the
dairy micro-biology building and the agricultural building. The replacement cost of the dairy
micro-biology building is about $12 million. The agricultural building was constructed in 1953
and would cost about $20 million to be constructed today. The renovation project will provide
11,000 sq. feet for the students in the areas of nursing, bio-chemistry, medical engineering,
animal science, and bio-technology.
Dr. Chicoine said that it is important to have the high speed network at the university to compete
with other universities in the research arena.
Currently, there is a gap of about $800,000 in utility costs. The university uses funds from the
academic side to pay for the utilities.
Cooperative Extension Service
Dr. Gregg Carlson, Interim Director, said that the mission of the Cooperative Extension Service
is to disseminate and encourage the application of research-generated knowledge and leadership
techniques to individuals, families, and communities in order to improve agriculture and
strengthen the South Dakota family and community.
The total recommended budget for this program includes increases of $248,927 from the general
fund, $130,504 in federal fund expenditure authority, and $17,992 in other fund expenditure
authority. The University's request and the Governor's recommendation are identical with the
exception of the recommended salary policy.
In response to Representative Tidemann's question, it was stated that there currently are six to
seven positions in the search process. The number accumulated when the university went to the
new human resources system. SDSU has implemented a program where local county input is
received. The university hopes to have the number decreased to three or four in the next year, but
is having a hard time competing in some disciplines.
Greg Carlson said, in response to Representative Tidemann's question that the starting salary for
the interim director of the Extension Service is $31,073 and he is trying to have it increased to
$33,000.
Representative Tidemann asked what the available money from the open positions was used for.
In response, it was stated that the funds remained in the system, and were used last year for a
one-time expense for laptops and printers.
Agricultural Experiment Station
Dr. John D. Kirby, Associate Dean and AES Director, said that the mission of the Agricultural
Experiment Station is to conduct research to enhance the quality of life in South Dakota through
the beneficial use and development of human, economic, and natural resources.
The total recommended budget for this program includes increases of $304,143 from the general
fund, $937,852 in federal fund expenditure authority, and $657,795 in other fund expenditure
authority. There is no change to the FTE level.
Three of the states' five 2010 centers are located in the College of Agriculture and Biological
Sciences, including the Center for Infectious Disease Research and Vaccinology, the Center for
Bioprocessing Research and Development with SDSM&T, and the Center for Drought Tolerance
Biotechnology. Agriculture remains a major contributor to the economic health of the state, with
$19.2 billion in annual economic impact in 2007. This year, agriculture employed 150,459
people and contributed $593,333,046 in tax revenues to the state. In addition, each dollar of
revenue generated in the state creates another $1,099 in additional economic activity.
In response to Senator Hunhoff's question about the potential growth of the doctorial program at
SDSU, Dr. Chicoine said that each program mush have eight new Ph.D. students each year to
have a program considered viable. He said that he would like to have 330 students in the
doctorial programs with 30 students in each of the 11 programs.
Representative Tidemann asked about the decision process in determining to renovate buildings
or construct new building. If the structure is fundamentally sound, the university should renovate
the current building.
Senator Hunhoff asked about the revenue from student tuition being less than projected for
FY08. In response, Wes Tschetter said that the student fees were adjusted because the projected
fees were less than the approved fees.
In response to Representative Tidemann's inquiry about an article that stated SDSU would be
shorted funds, Dr. Chicoine said that the formula was supposed to be recalculated in 2008. The
enrollment trend recalibration will now allow for the funds to be dispersed to other places.
Resources will be added to the budget and will help with the faculty positions that would have
come to the university with the recalibration.
Representative Rausch asked about the percentage of students that require remedial courses. In
response, Carol Peterson said that 25% of the students need remedial coursework in math. This
percentage has been slowly decreasing and should continue to decrease due to the higher ACT
requirement. About 16% of the students at SDSU require remedial English, and that percentage
is fairly stable.
In response to Representative Tidemann's question about the decreasing funds from the U.S. Department of Agriculture, it was stated that the funds to SDSU from the U.S. Department of
Agriculture is dependent upon the farm bills in Congress. If the package is passed the way the
university anticipates, it would result in a slight increase in formula funds. There was a bump last
year because grants were eliminated and placed in the formula. As anticipated from two years
ago, there will be a slight increase in formula funds and a larger increase in competitive funds.
The university will not know for certain until the farm bills get passed.
Senator Hunhoff requested the university provide to the committee the percentage of
pharmaceutical graduates that remain in South Dakota. Ms. Peterson responded that there is a
nursing shortage due to the aging population. The university has received a grant to help educate
faculty and it focuses on bringing more people into the masters program. Dr. Chicoine said that
the there are about 18 students in the Ph.D. program and the program was designed to train the
next level of faculty.
Other information
Senator Greenfield asked about the CPA exams. In response, Mr. Jewett said that the certifiable
public accountants made the decision to change to 150 credits. By passing the test, they are
receiving their masters in accountancy. It is not unusual for a student to only pass parts of the
four part test at a time. Dr. Perry said that the accounting licensing board does not report to the
BOR about the exams.
Dr. Perry said that to address remedial work, the Department of Education and Board of Regents
met and decided to change the high school graduation requirements. Through time, the
committee should see a decline in the percentage of students needing remedial courses. There has
been about a 1% decline in the last five years. An annual transition report is sent to all the
districts to show how the high school graduates are performing in higher education. The annual
report will be presented to the committee.
Dr. Perry said the BOR went off the formula 10 years ago, because enrollment was thought to be
flat. However, enrollment has increased by 5% and BOR does not have the funding for these
students. Mr. Jewett said that BOR is trying to allocate money based on projections without
increasing funding.
Senator Apa asked about the result if the state subsidized all the current self-support students in
the universities and the learning centers. In response, Mr. Jewett said that there would not be any
new money for the BOR. Previous experience has shown that the learning centers are not
negatively impacting the universities. The universities are increasing in retention, but self-
support students at the centers are needed to obtain the missing number of people with degrees.
Mr. Jewett said that the west river center is critical to reaching the goal of the 2010 Initiative.
The problem is retaining the 1,600 people there. BOR submitted a bill that would allow the
agency to accept the gift of 12 acres, which would allow the west river center to replace the
facility a tornado and no insurance. The center needs to have a place that the students feel
comfortable attending.
Representative Burg asked about the Rapid City learning center courses and if they could be taught in the evenings at a current state paid facility. In response, Mr. Jewett said that the nursing
program would be taught like most other programs throughout the day. Although it seems like a
good idea to have the classes taught at another state funded facility, the classes taught by the
center are always canceled if there are other events occurring at the facility.
In response to Senator Hunhoff's question about Capitol Center University (CUC), Dr. Perry said
that the Capitol Foundation would be the owner of the new facility. The hospital donated the
property to the foundation and a building will need to be constructed. Mr. Jewett said that the
BOR would not being paying rent for the new CUC building, but will pay for other services in
the facility.
It was stated in response to Senator Hunhoff's question that the self-support students are only
charged a fee for M&R when BOR has ownership and responsibility of the facility. The fee is
figured into the students' tuition and fees each year. Currently, the center in Sioux Falls is the
only self-support center that has an M&R fee.
Senator Maher asked, in reaction to HB 1085 and HB 1251, if it would be cheaper to add stories
on to the current buildings for class room space. In response, Mr. Jewett said the paleontology
building would be constructed with the bond issue bill, and BOR is not able to finance the
building without the bond.
Dr. Perry informed the committee that there are four component changes to the Opportunity
Scholarship. They include:
Senator Apa asked if the students are able to apply for a wavier if they are not able to take the
minimum 15 credit in a semester. In response, Dr. Perry said that waivers are a current option,
and the BOR is receiving close to 100 applications a semester. Students in pharmaceutical,
teacher education, and engineering majors have special quirks that do not require the students to
take 15 credits in a semester to graduate.