Committee: Joint Appropriations
Board of Regents
Mark Zickrick, LRC fiscal analyst, staffed the meeting.
Dakota State University
Dr. Jerald Tunheim, President, Dakota State University (DSU), presented the committee with an
overview of DSU (Document #1). President Tunheim introduced DSU's staff that was present and
began going through the document. In the presentation President Tunheim informed the committee
that DSU's headcount was up by 30% and there also has been an increase of on-line services due
to many teachers taking technology courses. The Freshman class is the highest that it has every been
at over 300 and they have the highest academic credentials of any entering class. President Tunheim
reported that DSU has seen an increase of 61% in computer majors and an overwhelming increase
of 185% in on-line education since the Fall of 1997. President Tunheim went on to explain DSU's
Fast Track Program. Representative Richter asked how many students were involved in the on-line
education and Ms. Cecelia Wittmayer, Acting Academic Vice President, DSU, said that ideally
there is a breaking point of 25 cohorts and beyond 40 is very difficult for instructors.
President Tunheim went on to explain DSU's placement of graduates reporting that 90% of 1997-98 graduates are employed in their field of study with 80% in-state placement. The Reinvestment Plan
for FY99 in which 8.8 FTEs were cut saved DSU $430,520. President Tunheim reported on the
Center of Excellence in Information Systems and their budget total of $664,396. President Tunheim
stressed the critical need of salary increase to give DSU the ability to complete for staff and informed
the committee of the school's computer technology giving recognition to DSU's ranking of #12 on
America's 100 most wired colleges reported in the Yahoo Internet Life magazine (Document #2).
President Tunheim reviewed DSU's funding framework, cash balances (Document #3), and
maintenance & repair. Other progress at DSU discussed included the Technology for Teaching and
Learning (TTL) that takes place in the summer, the US West Widening Our World (WOW) in which
US West funds DSU students to travel in a van to communities within the state and do Internet
training, and the Community Center to be completed by the Fall of 2000. Senator Staggers asked
how many faculty FTEs DSU has and President Tunheim responded 62 ½ FTE. Discussion
continued on the WOW program and a help station for computer problems located at DSU.
South Dakota School of Mines and Technology
Dr. Richard Gowen, President, South Dakota School of Mines and Technology, introduced Ms.
Karen Whitehead and Mr. Timothy Henderson, and presented the committee with current
information on SDSM&T (Document #4). Dr. Gowen informed the committee on the excellent
students (2,211 headcount), their average salaries after graduating from SDSM&T, and faculty
experience. He informed the committee that 40% of the universities graduates are employed in
South Dakota and many others are desiring to return to South Dakota for employment, which has
helped to bring corporations into the state. Dr. Gowen reported the characterization of the student
body informing the committee that 62% of SDSM&T students are in the field of engineering and
the other colleges represented on campus include: Black Hills State University, South Dakota State
University, and the Oglala Lakota College (Indian Learning Leadership Program).
Some issues of change mentioned by President Gowen are the $963,018 in reinvestment funds, the
funding of $24,920,514 in sources with $9,329,407 in state appropriated funds. President Gowen
explained that these reinvestment funds will be used for the following: 1) to redesign the university
curriculum to add major preparation & combination, mentoring, distance education; 2) to strengthen
K-12 preparation in mathematics, science, and English (SKILL program helps 15 states and 29
Tribal Colleges). President Gowen informed the committee of SDSM&T's center of excellence in
advanced manufacturing and production that is in conjunction with SDSU & WDTI students and
also reported on the competitive vehicles being built, events, expectations, and other projects.
Senator Lange questioned if SDSM&T could downsize their office, but it was explained that it was
important for them to work with what they had. President Gowen explained that a few programs
were eliminated due to the 7-10 concept (there must be 7 students in a graduate class and 10 students
in a undergraduate class in order for the class to not be cut within the 4 year period of time).
In the area of technology, President Gowen explained that all of the dorms are wired for the Internet
and all academic buildings on campus have computer laboratories. SDSM&T is looking forward
to getting all active alumni connected through their system to allow easy access to salary and
placement information.
SDSM&T is asking for $341,781 in salary competitiveness and $4,050,000 to renovate the civil- mechanical engineering building and to expand more project labs. President Gowen explained what
the school would be using their enrollment funds for and the actions they will have to take in order
to achieve their goals. President Gowen informed the committee that they will be asking alumni and
friends for scholarship support dollars in the amount of $16 million.
President Gowen went on to explain the faculties salaries, the nine plus sponsored research programs
historically and their cost of approximately $4 ½ million dollars to SDSM&T, and reported that their
cash balances on June 30,1998 totaled $609,158. In the area of maintenance, President Gowen
informed the committee of SDSM&T's 20 buildings, 118 acres, and the allocations for maintenance
& repair of $454,077 Higher Education Formula Funds (HEFF) and $62,100 fees.
At Senator Benson's request, President Gowen addressed the program improvement fee which
students in engineering courses are required to pay $12.85 per credit hour to supplement the
engineering faculty's salaries. This additional money allows for SDSM&T to compete nationally
for professors and gives the students the opportunity to increase their capacity to learn, which in
return allows the students to get better paying jobs. Ms. Karen Whitehead, Vice President,
SDSM&T, reported on the student enrollment in the graduate programs and international enrollment.
President Gowen reported on the patents pending from research at SDSM&T and at Senator
Frederick's request to President Gowen on his opinion on the bill on speed restriction tolerances in
the field. President Gowen responded that if he were with the DOT he would not drop the speed
limit, he would decrease the weight limit instead.
Northern State University
Mr. John Hilpert, President, Northern State University (NSU), presented the committee with
budget information (Document #5). President Hilpert began by going over NSU's unrestricted, non-
appropriated cash balance in which he reported the balance as of December 31, 1998 to be
$1,827,237 and explained the fluctuation on a monthly basis. President Hilpert provided a map in
the document that showed NSU's enrollment from South Dakota counties. Recently NSU has begun
working with the South Dakota National Guard on a distance education program which in part has
impacted the enrollment percentage to increase 9% to a headcount of 2,870 students.
In order to qualify for the Salary Enhancement Program, NSU has decreased 14 FTE resulting in a
savings of $555,068. President Hilpert reported that the salary increases have had a tremendous
impact on the 102 FTE faculties morale. In comparison to enrollment, NSU is in better shape than
many of the universities. At the request of Senator Dennert, President Hilpert addressed the problem
of completing a degree in four years due to less frequent offered courses. President Hilpert informed
the committee that there are no programs that can not be completed in four years and their faculty
has to plan and advise better for the students and are doing so very well.
President Hilpert went on to inform the committee of NSU's current technology expenditures in the amount of $193,204 for FY99. NSU has most of it's classrooms wired and is planning on spending over $250,000 to finish this year. President Hilpert acquainted the committee on the Governor's Technology Summer Grants Program in which 20 teachers took part last summer on NSU's campus and other curricular changes made in FY98. The committee was informed of the new funding framework at NSU and incentives. The reinvestment funds caused NSU to eliminate positions and cross train their staff while allowing students to complete many tasks at once. NSU is in the process
of training it's staff members in technology to increase use in course work on campus. President
Hilpert also informed the committee of the college leadership program and NSU's center of
excellence in international business in conjunction with Germany, China, Mexico, and Poland to
allow student exchange. There was a conference this summer in Rapid City in which 6 of the 7
continents were represented.
Senator Lange asked how the school alludes to high school students to attend higher education.
President Hilpert said that the economy is so good that it is difficult to entice students to higher
education.
Black Hills State University
Dr. Thomas Flickema, President, Black Hills State University (BHSU), presented the committee
with information (Document #6). After introducing the other staff present: Mr. Thomas Anderson,
Vice President Finance & Administration; and Dr. Lyle Cook, Vice President of Academic Affairs;
President Flickema informed the committee that 98% of BHSU FTE are undergraduate students.
Fall 1998 enrollment was at 3,639 which shows an increase of 5.6% in headcount. The technology
reinvestment strategies President Flickema informed the committee of include all residence halls
wired, faculty training in technology, 18 additional 56K modems, a multimedia development
laboratory in the basement of the E.Y. Berry Library (funded through the Bush program grant
proposal, “Creating a Collaboratory for Life-Long Learning”), and Jonas Hall classrooms will all
be wired for the Internet. President Flickema reported that BHSU will be spending $133,164 in
expenses to redesign the Universities Curriculum. BHSU has a structural designer hired to wire the
smart/electronic classrooms & distance delivery learning systems. Last summer BHSU hosted 300
school teachers for the TTL program. President Flickema reported that 9 faculty members have
implemented technology integrated courses as a result of the Governor's technology awards.
President Flickema went on to explain how BHSU is protecting assets and the economic
development of the university.
President Flickema informed the committee that BHSU has put business & technology degrees on
the Internet for the United States Air Force members. There are 100 some enrolled in the degrees
this semester.
President Flickema explained that BHSU's center of excellence proposal is linking to the K-12
community. BHSU is in extensive contact with Professional Development Schools. N-CAD
reported that the cooperation is rated very strong. BHSU's center of excellence in science &
mathematics (2 years old) is located on the 2nd floor of Central Elementary and is used for
workshops and as a resource center. BHSU is looking for a permanent director who would make
$90,000-$100,000 a year.
Dr. Cook explained that the center, which is in the amount of $219,720 in the budget is guided by the TIM study which investigates how to change working with hands-on manipulatives. BHSU has closed on several small grants and is hoping to hear on the $1.5 million grant through the National Science Foundation. President Flickema explained that BHSU in conjunction with SDSM&T would gather information using NASA material with the Weather Station Pilot Grant and they are in contact with five schools with mini-weather stations. Representative Pummel asked if the center is
integrated through out the schools or in a particular education and President Flickema responded that
it would develop a rigorous curriculum for teachers going out in classes such as: methods of science,
methods of mathematics, biology, & chemistry.
President Flickema specified that the salary distribution money was given to faculty on a basis of
merit and market in the three year program. Two faculty members showed no increase, three 1%
increase, and others a 17%-18% increase.
Mr. Tom Anderson explained BHSU's maintenance and repairs. Key activities in state support
buildings are scheduled repairs, wiring definition, sign commitments with local funds to improve
buildings. Expenditures totaled $993,361 for FY99. BHSU's project revenue building fund
expenses included parking changes to increase the number of spaces and safety, and the David B.
Miller Yellow Jacket Student Union refurbishment in 1997 which was funded entirely by student
fee (general academic fee) money and its utilities.
Senator Kleven asked where this fund comes from and President Flickema explained that the
students voted on a tax increase and from residence hall support fees. The general activity fee is
$14.17 per credit hour and includes 25% bond payments, $6.00 to overall operations, and the balance
goes to the student activity association. Senator Derby asked about the Donald E.Young Sports &
Fitness Center's roof replacement and President Flickema informed the committee that the roof was
still under warranty and due to a chemical flaw, the roof was replaced free of charge.
University of South Dakota
Dr. James W. Abbott, President, University of South Dakota (USD), introduced Mr. Greg Redlin,
Vice President Finance & Administration, and Mr. Richard Van Den Hul, Director of Budget.
President Abbott presented the committee with budget information (Document #7) and explained
that USD is in a time of positive change. USD's headcount enrollment is at 7,317 students and 6,144
FTE on and off campus. President Abbott addressed USD's cash balances and explained that there
are some significant changes over the course of the year due to various things arising, such as the
fact that there are negative balances at the end of the year until grants are paid at the end of the year.
On June 30th, 1997 there was $9,742,000 in cash on hand and as projected, the balance decreased
to $6,505,000 this June. USD has used these fees to purchase $218,000 worth of property adjacent
to the university, $219,000 in campus identification card changes, and $600,000 maintenance and
repairs in the residence halls. There are a number of student fees for improvements including
deposits on the dorm rooms.
President Abbott explained USD's five incentive fund areas. First, he explained access in which the number of freshmen has been up two years in a row after having been down for a few years. For next fall, USD is looking for an increase of 5.1%. President Abbott explained that it is very difficult when the university borders Nebraska, which furnishes scholarships for students with certain SAT scores. USD has increase their scholarships significantly and according to anecdotal evidence they were being turned down by the first 10 of 11 students chosen for scholarships, but this has reversed this year due to increased funding for scholarships. In the incentive of economic growth programs, President Abbott reported that the MSAS program has been completed and is offering classes particularly for those students living off campus. According to President Abbott, USD is not
positive that they have reached their target of 100% based on ACT scores, which has caused a
decrease of approximately $200,000. USD is working collaboratively with SDSU on French and
German language classes which has increased funds by $211.48, which is not quite the level they
expected at $232. Students were not taking these courses due to the fact that they are rarely ever
taught in high schools and therefore these French and German classes would be all new to the
students and therefore require more study time. The fifth incentive includes the external funds target
including donations, which has done very well due to the alumni response and is in the process of
funding for $1.3 million and is currently at $1.9 million. President Abbott reported that there have
never been more grants being received than currently. Capital funds have funded the rental of the
City of Vermillion's softball complex, Shakespeare Garden, and the Freedom Forum Center.
President Abbott informed the committee that gifts received exceed their goal of $371,000.
President Abbott explained the issue of salary competitiveness and while doing so expressed the
need to continue the rewards with goals university department. USD's awards for faculty were based
60% on performance and 40% on market. USD has cut 21 FTEs, many of which retired, but is in
the process of finding out which faculty members will retire and not be replaced or will be combined
with other positions.
In the area of Technology, President Abbott explained that USD is one of the best. The universities
infrastructure includes 462,762 feet in wiring and is targeted at 752,000 feet. USD currently has 41
network servers and has a target of 54. All research has been collaborated via the Internet. USD
presently has 292 faculty computers, 246 computers in labs, and 183 computers for staff and
administration. President Abbott explained that USD has 26 presentation classrooms, 10 distance
education classes, and 20 technology based classes. Discussion continued on the CIDD program to
choose own curriculum, Y2K compatibility, and the LOFTY program.
President Abbott reviewed the centers of excellence contained on the USD campus including:
Disaster Mental Health Institute ($357,551) which forefronts disaster activities throughout the state,
Ambulatory Care ($388,931) in hospitals and clinics to examine progression & approach, and the
W.O. Farber Center for Civic Leadership ($347,723) in which President Abbott over viewed the
current activities. President Abbott went on to review the seven other reinvestments for FY99 and
their budgets.
As far as maintenance and repair are concerned, USD is in the process of working through the
foundation to earn money for renovation and rehabilitation of the Lee Medical Building. The ten
year needs for this project totals $24,000,000 in donations and the rest of the money will be derived
from the maintenance and repair fund. Representative Putnam asked if the Dakota Dome was
included in the $24 million and the answer was negative.
Senator Duxbury requested that President Abbott address the medical program changes. President Abbott informed the committee that originally USD was contracting for 6 spots and then increased to 12 students with funding from St. Lukes and Sioux City to enter the PA, PT, and OT programs out of state. There are currently 50 graduates every year from USD's school of medicine and funding each year totals $14 million. Senator Drake asked if it would be better to use the money to give scholarships to these students to attend another school and President Abbott informed the committee that USD has tried an innovated program in which freshman with pre-medicine majors
have to have an exceptionally high ACT score and GPA. If they keep this up they will succeed in
attending the four year medical school in South Dakota. USD is not graduating specialists and
interning students in general practice in the state. Senator Drake then requested a breakdown of the
costs of various degrees at USD.
Mr. Harvey C. Jewett, IV, Secretary, South Dakota Board of Regents, commented on being
misquoted in a newspaper article and explained that the reporter had compressed what he had said
which has given Legislators a false impression. Dr. James Hansen, President, South Dakota Board
of Regents, remarked on the issue also and gave closing comments.
MOTION:
ADJOURN
Moved by:
Senator Duxbury
Second by:
Representative Putnam
Action:
Prevailed by voice vote.
Leanne Schlekeway