Committee: Joint Appropriations
Board of Regents
Mark Zickrick, LRC fiscal analyst, staffed the meeting.
Dr. Tad Perry, Executive Director, BOR, introduced Ms. Kathy Johnson, Director of Administrative
Affairs, BOR, and presented the committee with updated budget information with corrections to the
Governor's Budget Report (Document #1). Dr. Perry began by reviewing the Board of Regents system
budget. He explained the sources of funding and the five items the Board requested for FY2000: 1)
Technology, 2) ADR& DL Lease Payment, 3) Salary Compensation Plan, 4) HEFF Lease/M&R, 5)
O&M Inflation (Document #2). Dr. Perry informed the committee that since the fall they have decided
to ask for an additional 1% or $44,244 to the HEFF M&R 3% increase. Dr. Perry also reviewed the
Governor's Recommended Budget for the Regents System (Document #3). Dr. Perry commented on
federal and other expenditure authority and the decrease of around $31,000,000 which has made
budgeting tight and BOR will get by in FY99, but FY2000 is questionable. Representative Richter
asked if the Governor's grant is reflected in the technology portion of the budget and Dr. Perry said
that it is not and the $1,000,000 from the Governor is one time funds and the Governor also put up a
match for the wiring of the schools and the Board of Regents matched it.
Dr. Perry proceeded to explain the central office's FY2000 budget. He said that the budget is largely
the product of salary policy and HEFF distribution. Senator Staggers asked if all of the 42.5 FTE were
located in Pierre and Dr. Perry said that there are 15 located in Pierre and the most are located in the
Board of Regents Information Center in Vermillion.
Representative Putnam asked if the grants received correspond with the state fiscal year and if they
have ample time if expenditures fall short. Mr. Redlin said that they were in sync with fiscal policy.
However, the state fiscal year ends June 30th. Mr. Redlin explained that it is very difficult to estimate
and the 250 active grant accounts lends a great deal of uncertainties also. Senator Staggers asked about
the Future Fund research and Mr. Redlin replied that it is part of the EPSCoR program and it has been
underway for a number of years. The Future Fund helps to provide funding for scientific research $1.5
million ($500,000 campus funds and $500,000 from USD's Future Fund award.
Mr. Redlin also asked for questions concerning the USD School of Medicine and informed the
committee that they have approximately 100 faculty FTE and there are 200 students in the school of
medicine and 56 students in health sciences . At Representative Derby's request, Mr. Redlin explained
the 4 fees included in the HEFF funds: 1) Application, 2) Transcript, 3) Late Registration fees, and 4)
Reinstatement fees. Senator Staggers asked what percentage of their education cost the students pay
and Mr. Redlin said that approximately 40% of the costs are paid by the student. Senator Staggers
followed up by asking about the School of Medicine's percentage and Mr. Redlin said that he would
get back to the committee with that information.
South Dakota State University
Mr. Mike Reger, Vice President of Administration, SDSU, introduced Mr. Wes Tschetter, Director
of Finance & Administration, SDSU, and said that SDSU has 514 faculty FTE which includes
department heads that have teaching duties. The grants and contracts account fluctuates significantly.
Mr. Reger reported that award success last year was lower than normal due to less funds and more
seekers. Senator Frederick questioned whether the committee should appropriate the continuous
authority for tuition and system fees or show it as informational.
The committee had no questions on SDSU's Cooperative Extension Services, so Mr. Reger moved
on to the Agricultural Experiment Station's budget and inquired for questions. Senator Staggers
asked about the FTE faculty and Mr. Reger said that there were 97 faculty FTE of the total 366
recommended. Mr. Tschetter added that the difference between actual FTE that the station actually
has and what is budgeted is because there are 24 FTE vacancies due to the abnormal turnover. Mr.
Tschetter explained that as of mid-year they have around 350.6 FTE plus there is a 5% vacancy factor
for seasonal labor. Representative Pummel asked about the application for federal appropriated
revenues and if they are applied for on a yearly basis and Mr. Tschetter said that the federal
appropriation is on a formula fund basis which remains the same unless there is a major variation on
the federal side and they do not apply for this appropriation. The formula is not based on a per student
factor, it goes back to the enabling action.
South Dakota School of Mines & Technology
Mr. Tim Henderson, Director of Business & Administration, SDSM&T, stated that there is 185
faculty FTE at the university and asked for budget questions. Representative Pummel asked about the
number of federal grants and contracts to which Mr. Henderson responded that SDSM&T has $3
million funding for research projects through the National Science Foundation, Department of Energy,
and others which fluctuate on an annual basis. Representative Cerney inquired why the academic
support media center showed zeros for budgeting and Mr. Henderson explained that they moved the
location of the alcohol detection print center to the media center from program 4 to institutional
support. Senator Dennert asked why the student services and general revenues increased in FY97 and
Mr. Henderson said that the number of activities slowed and there was an increase in special fund
raising projects.
Northern State University
Mr. Don Erlenbusch, Vice President of Finance & Administration, NSU, said that the faculty FTE
was at 102 and the grant activity is very important and NSU is coming off a Title 3 grant to which they
originally thought they were going to have to sit out for only a year, but learned that it is 2 years.
Senator Frederick asked how much money in federal grants they were receiving and Mr. Erlenbusch
said $1.5 million in five years which was used to buy faculty and staff computers and for a program
to allow electronic grade recording and transfers. Senator Frederick followed up by asking how they
treated the FTE attached to a grant when the grant ends and Mr. Erlenbusch said that the FTE have to
go or they have to make cuts in other areas. Mr. Erlenbusch explained that there are currently 5 open
FTE positions which will not be filled next year unless the anticipated grants come through and if NSU
over hires they will make adjustments to the student labor. Representative Derby asked why the School
& Public Lands revenues decreased and Mr. Erlenbusch said that there was a shift in the budgeting and
what is down in instruction is increased in the area of faculty support.
Black Hills State University
Mr. Tom Anderson, Vice President of Finance & Administration, BHSU, reported that the university
is has 117 faculty FTE and asked for questions concerning the budget. Senator Staggers asked about
why BHSU has a comparably high travel budget and Mr. Anderson explained that BHSU has a federal
Upward Bound grant that requires a lot of travel for activities and the second campus at Ellsworth
requires the professors to travel for classes. Representative Richter asked if the tuition at Ellsworth
is the same as on campus and Mr. Anderson explained that students on the Ellsworth campus pay a few
dollars more per credit.
Representative Derby asked about the four times increase for the RDTN earlier presented to the
committee and it's accomplishments to which Mr. Anderson said that the $25,000 established in
August of 1998 together looking at RDTN to increase technology in education and reported on the
electronic classrooms. Senator Lange asked who determines the distribution of the School & Public
Lands funds and Mr. Anderson explained that it is all in operations and maintenance money that
students have spent. It was historically in programs 1,4, &6 and has remained constant at $109,961.
Representative Klaudt asked why there was such a big difference between the costs to students between BHSU and NSU when they have the same mission and Mr. Anderson said because BHSU is under funded and the average salary system is one of the lowest within the system. Representative Klaudt followed up by asking about the percentage of the dorms full at BHSU--96.9% compared to NSU's
76.6%. Mr. Anderson explained that historically BHSU dormitories have been full in the Fall and this
year it was full beyond capacity.
Representative Pummel asked about the dramatic increase in student fees for the physical plant and if
the new student union is in the budget. Mr. Anderson replied that the number did not reflect
modernization and there has been a student fee added. Senator Kleven asked what the 60% increase
in student fees has accounted and Mr. Anderson said that there are two factors: 1) equalization in union
support fees because of the move from the historical lowest to a common fee in a 6 year program, and
2) the change in added laboratory fees due to the Department of Revenue's requirements.
Dakota State University
Mr. Mark Lee, Vice President of Finance & Administration, DSU, informed that committee that they
have 65 faculty FTE and asked for questions in regards to the budget. Senator Hainje asked about the
Governor's Faculty Awards and if this $1 million project is for professors or teachers in the schools.
Mr. Lee said that it is for the TTL program which last summer totaled $463,000 in budget expenditures
which DSU was able to absorb, but this year the university is estimating $500,000 in new expenditures
and they will need additional funds. Senator Lange asked about the contract with US WEST in FY97-
98 that is no longer existent and Mr. Lee said that it was another teacher program that has since ceased
in which expenditures increased for lap top computers paid by US WEST.
Representative Klaudt asked why there was an increase in the library fees item and not in library
services to which Mr. Lee said that the fees go to the university support fee and the increase in credit
hours. They have put more money into the fee itself, the increase in credit hours, and purchased a very
intensive electronic computer system. The services are zero because they consolidated them with the
library fee instead of having a $500 line item. Senator Lange asked if the Mundo Library Archives
have considered supporting a scholarship fund and Mr. Lee said yes and DSU pays the payroll with
Mundo foundation dollars.
Senator Lange asked where the School & Public Lands O&M is spent and Mr. Lee said that 100% was
spent on computer services activity for simplicity sake.
South Dakota School for the Deaf
Mr. Bill Van Den Hemel, Business Manager, South Dakota School for the Deaf, informed the
committee that they have 26 faculty FTE out of the total FTE of 57.4 and asked for questions regarding
the school's budget. Senator Staggers asked about the travel increase from 1998 and Mr. Van Dem
Hemel explained that there was an error and the travel recommendation needs to be switched with the
supplies and materials. Senator Dennert asked about grants and Mr. Van Den Hemel explained that
they lost 2 grants this year and the Principal and Superintendent are currently working on 4 grants.
Representative Klaudt asked Mr. Van Den Hemel to explain the increase in miscellaneous activity for
FY98-99. Mr. Van Den Hemel explained that part of these funds were used for the board office funds
and now this moved to other funds and some was for spending authority if the school needed to which
would be generated from left over grant money. Mr. Van Den Hemel explained that there are 58
students at the school, 28 of which are in the dormitories, and 95 students in the local school district.
Senator Staggers asked about the local funds and Mr. Van Den Hemel said that full time students enrolled from Minnesota pay approximately $24,000 per year and many parents keep a student cash
account on hand which comes from parent allowances. The campus also bills for auditory service on
campus and there is a staff gift fund to which the staff pays into. Representative Klaudt asked why
they do not contract out for the full cost to South Dakota and Mr. Van Den Hemel explained that the
Department of Revenue covers the margin of expenditures. Representative Pummel asked if the
average cost per student increases due to the out of state student expenditures being placed on the South
Dakota and Mr. Ven Den Hemel said that it would remain the same with or without the 4 or 5
Minnesota students.
South Dakota School for the Blind Visually Impaired
Mr. R. Lee Ginsbach, Business Director, South Dakota School for the Blind Visually Impaired, said
that the faculty FTE within the school is 16 and asked for any questions. Senator Dennert asked why
the gift fund had increased around $25,000 and Mr. Ginsbach said that they are asking for additional
spending authority and build in that amount if they receive more funds which would give the school
the ability to spend more gift money. Senator Kleven questioned why the school lunch funds have
decreased and Mr. Ginsbach explained that the numbers were backwards and it should show an
increase of $6,698.
Dr. Perry asked for other questions concerning the Board of Regents budget and explained the WICHE
reciprocal agreement with North Dakota and Wyoming while reporting that DSU is suffering a decline
in population due to the phase out of out of state students. Dr. Perry explained that it depends on the
campus capacity as to where these students can attend the universities.
Senator Bogue asked if there was a system-wide policy on the use of state resources with professors
with outside employments and Dr. Perry explained if a professor is engaged in outside employment
that he or she can not use the states resources and he asked Senator Bogue to let him know if he knew
of a professor doing so.
Senator Staggers asked what the 2 airplanes cost the Board of Regents and Dr. Perry said he did not
know the exact amount. Mr. Redlin said that USD spends around $110,000 a year or about $1.47 per
mile and they fly around 70,000 to 80,000 miles per year. He explained that other agencies pay for use
of the planes which amounts to around 25% to 37% of costs. Mr. Reger did not know, but there has
been decreased use with SDSU's airplane.
MOTION:
ADJOURN
Moved by:
Representative Klaudt
Second by:
Representative Pummel
Action:
Prevailed by voice vote.
Leanne Schlekeway