91st Legislative Session _ 2016

Committee: House Education
Monday, February 08, 2016

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Campbell
P    Deutsch
P    Gibson
P    Hawks
P    Holmes
P    Hunt
E    Kaiser
P    Klumb
E    May
P    McCleerey
P    Tulson
P    Wollmann
P    Zikmund
P    Johns, Vice-Chair
P    Sly, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative, Jacqueline Sly.

MOTION:    TO APPROVE THE MINUTES OF FEBRUARY 3, 2016 MEETING

Moved by:    Zikmund
Second by:    Hunt
Action:    Prevailed by voice vote.

    HB 1191: revise certain provisions regarding the critical teaching needs scholarship program.

Presented by:    Representative Tulson


MOTION:    TO TABLE HB 1191

Moved by:    Holmes
Second by:    Zikmund
Action:    Prevailed by roll call vote. (13-0-2-0)

Voting Yes:    Campbell, Deutsch, Gibson, Hawks, Holmes, Hunt, Klumb, McCleerey, Tulson, Wollmann, Zikmund, Johns, Sly

Excused:    Kaiser, May

    HB 1169: allow a school district to operate an attendance center within another school district.

Presented by:    Representative Wollmann
Proponents:    Senator Peters
        Diana Miller, Large School Group
        Tami Darnall, South Dakota Department of Education
Opponents:    Christopher Jung, Association of Hutterian Churches

MOTION:    AMEND HB 1169

1169ca

    On page 1 of the printed bill, delete lines 9 to 14, inclusive.

    On page 2, delete lines 1 to 3, inclusive.

    On page 2, delete lines 8 to 13, inclusive.


Moved by:    Gibson
Second by:    Hawks
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1169 AS AMENDED

Moved by:    Gibson
Second by:    Hunt
Action:    Prevailed by roll call vote. (10-3-2-0)

Voting Yes:    Deutsch, Gibson, Hawks, Holmes, Hunt, McCleerey, Wollmann, Zikmund, Johns,

Sly

Voting No:    Campbell, Klumb, Tulson

Excused:    Kaiser, May

    HB 1136: revise certain provisions regarding the annual report provided by the Board of Regents to the Council on Higher Education Policy Goals, Performance, and Accountability, and to declare an emergency.

Presented by:    Representative Munsterman (Handouts: #1)
Proponents:    Liza Clark, Governor's Office

MOTION:    AMEND HB 1136

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    On the printed bill, delete everything after the enacting clause and insert:

"    Section 1. That § 13-48A-7 be amended to read:

    13-48A-7. The Board of Regents and the Board of Education shall each provide to the Council on Higher Education Policy Goals, Performance, and Accountability Legislative Planning Committee an annual accountability report as determined by the committee. The initial accountability report, to be provided to the council in 2013, shall contain, for each of the postsecondary education institutions under the respective board's control, information on the following:

            (1)    Improvements in on-time degree completions;
            (2)    Affordability for students;
            (3)    The placement of graduates in jobs or further study in South Dakota; and
            (4)    Improvements in the percentages of graduates who are successful in passing licensure, certification, or exit exams administered by third parties.
    The council shall determine the content of subsequent accountability reports.

    Section 2. That § 13-48A-1 be repealed.

    13-48A-1. Terms used in this chapter mean:

            (1)    "Average state appropriation per higher education student," the average state general fund appropriation for each student enrolled in an institution of higher education under the control of the Board of Regents for the previous fiscal year as determined by the Bureau of Finance and Management;
            (2)    "Full-time equivalent," at the postsecondary technical institutes equals thirty credit hours of instruction per year, and at the institutions under the control of the Board of Regents

equals thirty credit hours of instruction per year for undergraduates, twenty-four credit hours of instruction per year for students seeking master's and doctoral degrees, thirty credit hours of instruction per year for students in law school, and thirty-eight credit hours of instruction per year for students in medical school;

            (3)    "Projected state general fund increase," the estimated percentage change in state general fund revenue, as submitted by the Governor pursuant to § 4-7-10 or as adopted by the standing committees on appropriations;
            (4)    "Public postsecondary education institutions," the postsecondary technical institutes under the control of the Board of Education and the institutions of higher education under the control of the Board of Regents; and
            (5)    "Public postsecondary education systems," the system of postsecondary technical institutes under the control of the Board of Education and the system of institutions of higher education under the control of the Board of Regents.

    Section 3. That § 13-48A-2 be repealed.

    13-48A-2. The Legislature hereby finds, and declares to be the public policy of this state, that the purpose of public postsecondary education is to provide the following:

            (1)    A workforce that meets the current and prospective needs of the state's economy;
            (2)    Affordable postsecondary educational opportunities for all state citizens;
            (3)    Access to postsecondary education programs that serve to increase the educational attainment of the state's citizenry and thereby enable citizens to provide leadership in all sectors of life in the state; and
            (4)    A foundation upon which the state can grow the development and innovation capacities of the state's economy.

    Section 4. That § 13-48A-5 be repealed.

    13-48A-5. There is hereby created the Council on Higher Education Policy Goals, Performance, and Accountability. The council shall consist of the following members:

            (1)    The Governor or the Governor's designee;
            (2)    The secretary of the Department of Labor and Regulation;
            (3)    The commissioner of the Governor's Office of Economic Development;
            (4)    The commissioner of the Bureau of Finance and Management;
            (5)    Three members of the House of Representatives, appointed by the speaker of the House of Representatives. No more than two of the members may be from the same political party;
            (6)    Three members of the Senate, appointed by the president pro tempore of the Senate. No more than two of the members may be from the same political party;
            (7)    Two members of the Board of Regents;
            (8)    The executive director of the Board of Regents;
            (9)    The secretary of the Department of Education;
            (10)    One member of the State Board of Education who shall serve for one year and be appointed by the secretary of the Department of Education;
            (11)    One local school board member from a school district where a postsecondary technical institute is located who shall serve for one year and be appointed by the secretary of the Department of Education;
            (12)    One superintendent from a school district where a postsecondary technical institute is located who shall serve for one year and be appointed by the secretary of the Department of Education;
            (13)    A president of an institution of higher education under the control of the Board of Regents who shall serve for one year and be determined by a rotating order based on the year of the establishment of the institution; and
            (14)    A president of a public postsecondary technical institute who shall serve for one year and be determined by a rotating order based on the year of the establishment of the postsecondary technical institute.
    The Governor or the Governor's designee shall serve as the chair of the council. In 2013 and 2014, the council shall meet once each year to monitor the progress of the public postsecondary education systems and institutions toward the goals established in § 13-48A-3.

    Section 5. That § 13-48A-6 be repealed.

    13-48A-6. Beginning in 2015, and in every year immediately following a gubernatorial election thereafter, the Council on Higher Education Policy Goals, Performance, and Accountability shall meet to review, endorse, and recommend to the executive branch, the Legislature, and the respective postsecondary education governing boards the four-year goals for the public postsecondary education systems and institutions and the performance metrics by which the council will monitor the progress toward those goals. The initial goals established by the council shall take effect on July 1, 2015, and subsequent goals will take effect every four years thereafter. In intervening years, the council shall meet annually to monitor the progress toward the goals. When establishing goals and performance metrics, the council shall draw upon public input from any persons who may be concerned or knowledgeable in these areas. A majority of the members appointed to the council constitutes a quorum for the purposes of conducting business. Any action may be taken by a vote of the majority of the members present at a meeting. The duties of the council include only those stipulated in this chapter and do not impinge on the constitutional powers and duties of the Board of Regents or the legislative powers and duties of the Board of Education or include participation in the operation, management, or oversight of any postsecondary education institution in the state.

    Section 6. That § 13-48A-8 be repealed.

    13-48A-8. To achieve the public purpose and goals established for postsecondary education in the state pursuant to this chapter, the state funding for the higher education system may be calculated as follows:

            (1)    If the projected state general fund increase allows, the higher education system may

receive funding through the normal budgeting process for performance funding. Any sum appropriated from the general fund for the purpose of performance funding shall be provided to the Board of Regents. The Board of Regents shall then determine the allocation of funds to the institutions it governs that reflect institutional performance and system strategic investments. For fiscal years 2014 and 2015, funds appropriated for performance funding shall be awarded to the higher education institutions based on improvements in the following areas:

            (a)    One-half of the performance funding shall be based on the number of new graduates with special emphasis on those graduates with degrees in science, technology, engineering, and mathematics or other critical need areas as determined by the Council on Higher Education Policy Goals, Performance, and Accountability established in § 13-48A-5; and
            (b)    One-half of the funding shall be based on the growth of expenditures for research;
                For fiscal year 2016 and in subsequent fiscal years, the performance funding shall be awarded to the Board of Regents based on criteria established by the Council of Higher Education Policy Goals, Performance and Accountability; and
            (2)    If the higher education system receives the performance funding in subdivision (1), and the cost of the performance funding is less than the projected state general fund increase, the higher education institutions may also receive, through the normal budgeting process, a mission expansion increase calculated pursuant to this subsection to reflect expanded student services and increases in enrollments and credit hour completions. If the performance funding provided pursuant to subdivision (1), and the amount calculated in this subdivision for a mission expansion increase is greater than the projected state general fund increase, each higher education institution shall receive a pro rata share of the total amount calculated. The mission expansion increase shall be calculated as follows:
            (a)    Each institution of higher education shall receive a payment equal to one-half of the average state appropriation per higher education student for each full-time equivalent enrollment in the previous fiscal year that exceeded the total full-time equivalent enrollment in the year preceding the previous fiscal year; and
            (b)    Each institution of higher education shall also receive a payment equal to one-half of the average state appropriation per higher education student for each full-time equivalent of credit hour completions in the previous fiscal year that exceeded the total full-time equivalent of credit hour completions in the year preceding the previous fiscal year. The full-time equivalent of credit hour completions for which an institution is entitled to a payment pursuant to this section shall be calculated as follows:
            (i)    For the previous fiscal year, at each degree level, divide the total number of credit hours completed at that institution by the number of credit hours required to be a full-time equivalent student;
            (ii)    For the year prior to the previous fiscal year, at each degree level, divide the total number of credit hours completed at that institution by the number of

credit hours required to be a full-time equivalent student;

            (iii)    If the product of subsection (i) is greater than the product of subsection (ii), calculate the difference between the two at each degree level; and
            (iv)    Add together the results for each degree level;
                In addition to the mission expansion funding calculated pursuant to this subsection, the Legislature may also provide additional funding to institutions of higher education for the expansion of program mission; and
            (3)    If the higher education system receives the performance funding in subdivision (1) and the mission expansion increase in subdivision (2), and the cost of both of the increases is less than the projected state general fund increase, the higher education system may receive, through the normal budgeting process, an operating budget inflationary increase equal to the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or three percent, whichever is less. For the purpose of this section, the operating budget does not include any portion of the budget that contains funding for salaries and benefits for any employees provided by the Legislature through the General Appropriations Act. "


Moved by:    Johns
Second by:    Gibson
Action:    Prevailed by voice vote.

MOTION:    DO PASS HB 1136 AS AMENDED

Moved by:    Klumb
Second by:    Gibson
Action:    Prevailed by roll call vote. (13-0-2-0)

Voting Yes:    Campbell, Deutsch, Gibson, Hawks, Holmes, Hunt, Klumb, McCleerey, Tulson, Wollmann, Zikmund, Johns, Sly

Excused:    Kaiser, May

MOTION:    AMEND TITLE OF HB 1136

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    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "eliminate the Council on Higher Education Policy Goals, Performance, and Accountability and to transfer its functions to the Legislative Planning Committee.".

    On page 1, delete lines 2 and 3.


Moved by:    Klumb
Second by:    Hunt
Action:    Prevailed by voice vote.

MOTION:    ADJOURN

Moved by:    Hunt
Second by:    Klumb
Action:    Prevailed by voice vote.

Shirley Ellwein

____________________________

Committee Secretary
Jacqueline Sly, Chair


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