P - Present
E - Excused
A - Absent
Roll Call
P Sen. Drake, Co-Chair
P Sen. Putnam, Vice-Chair
P Sen. Apa
P Sen. Dennert
P Sen. Duxbury
P Sen. Greenfield
P Sen. Kleven
P Sen. Madden
OTHERS PRESENT: See Original Minutes
The committee met jointly with House Appropriations.
The meeting was called to order by Chairman Richter
Board of Regents
Harvey Jewett IV, President of the Board of Regents, appeared before the committee and introduced
Ms. Peggy Elliott, President of South Dakota State University.
Ms. Elliott stated that enrollments have stabilized and head count for the University has increased
3.5%.
Ms. Elliott spoke about the Salary Competitiveness Program and expressed that the university faculty
is more content. The salary increases were attainable due to increases in student fees. She also
talked about the Ten-Year Capital Improvement Plan and the university's renewed emphasis on
scholarship programs.
Representative Derby asked what percentage of students remain in South Dakota after graduation.
Ms. Elliott replied that 80% of all tuition loan payments are made from South Dakota addresses.
Senator Apa asked for the definition of 'Rising Junior Test.' Ms. Elliott stated that it is a
systemwide test consisting of math, English, and science questions that each junior-level student has
to take.
Representative Clark asked the percentage of capacity the dorms had. Ms. Elliott said that they were
presently at 89% of capacity.
Senator Kleven asked if the increase in salaries is given only to those receiving state-funded salaries.
Ms. Elliott stated that if the increase is for state funded CSA employees, the salaries are increased
with state funds; if the employees are exempt or professors, the increases are funded by increasing
the tuition.
Representative Lange asked what the University could do to gain 2,500 students and if reductions
in tuition for Nebraska and North Dakota students would help. Ms. Elliott stated that the Board is
considering reducing out of state tuition for Nebraska and North Dakota students to draw them to
the system.
Representative Adelstein asked if the percentage was reduced for out of state students what effect
would it have on the net gain/loss. Ms. Elliott said that if they reduced it to only 150% of resident
tuition, the University would still show a net gain.
Mr. Dave Gienapp, Budget Committee and Finance Director of the Board of Regents, appeared
before the committee.
Mr. Gienapp stated that there are three areas of recommended budget increases: Information
Technology, needs, and salary policy. He said developing the VTEL system is $188,824 and the new
equipment is $45, 811.
Mr. Gienapp discussed the operation and maintenance costs of utilities increased by $313,690 for
regular education schools and $12,000 for the Special Schools.
Mr. Gienapp stated that the recommended budget also included two new FTEs, one at a salary of
$100,000 and one at a salary of $22,500. The new FTE receiving $22,500 from recommended funds
would be matched by the South Dakota School of Mines and Technology which is requesting the
funds.
Mr. Robert 'Tad' Perry, Executive Director of the Board of Regents, approached the committee. Mr.
Perry spoke about Internet and Internet 2 and their purposes.
Representative Clark asked why the number of South Dakota students attending the universities of
South Dakota is down and why the universities penalize the out of state students by increasing their
tuition rate and discouraging them from attending. Mr. Perry said they weren't penalizing the out
of state students, the marginal rates they are requesting are decreasing, and they are attempting to
encourage out of state students to attend South Dakota universities. However, the Board has
complied with the residency requirements proposed by Governor Janklow and enacted by the
Legislature.
Representative Clark asked how the universities are addressing the issue of the number of South
Dakota High School students decreasing. Mr. Perry said that half of those who do graduate apply
at the universities within one year of graduation and there are many non-traditional students now
attending college making up for the decrease in high school graduates.
Senator Kleven asked why the recommended budget includes more FTEs for FY2002 when the
number of students has decreased. Mr. Perry said 31 of the 33 aren't faculty positions. They're
FTEs to account for the Governor's Technology Fellows Program.
The committee recessed at 10:15 AM.
The committee reconvened at 10:30 AM.
Mr. John Hilpert, President of Northern State University, approached the committee and Document
#5 was distributed.
Mr. Don Erlenbusch, Vice-President of Finance and Administration, Northern State University,
addressed the unrestricted non-appropriated cash balances. He explained that the fluctuations were
due to the time of year that tuition was collected and the faculty and expenses paid.
Mr. Hilpert stated that there was an increase of 26.4% in headcount and a decrease of 6.2% in FTEs.
He addressed the Technology/Instructional Equipment Spending increase and the success of
Governor Janklow's Faculty Awards For Teaching With Technology.
Dr. Cozzetto,Vice-President of Academic Affairs, Northern State University, approached the
committee and spoke about the Student Technology Fellows Program's success. He stated that there
is 112.4 miles of new computer wiring throughout the school and the wiring was completed with
Department of Corrections inmates. He explained the importance of Internet 2 to Northern State
University and the Ten-Year Capital Improvement Plan.
Senator Apa asked what the median salary for faculty is. Mr. Cozzetto said he would supply that
information at a later date.
Senator Kleven asked how many FTE are faculty. Mr. Cozzetto stated that 31% are faculty.
Representative Lange asked if the university could accommodate more students and how many of
their students were from North Dakota. Mr. Cozzetto replied that they could physically
accommodate five- to six-hundred more students but not educationally.
Senator Drake asked how many of the faculty members were attending the technology classes
offered. Mr. Cozzetto replied that seventy faculty members are currently enrolled and twelve have
graduated.
Senator Apa asked if the faculty who take the technology courses continue their employment. Mr.
Cozzetto replied that the courses are working as a great retention tool.
Senator Duxbury asked how many students are involved in the International Student Exchange
Program, what are their achievements, and their major areas of study. Mr. Cozzetto said that there
are 60 students involved in the Exchange, they have built a great rapport, and their major area of
study is business.
Senator Drake inquired about the $300,000 increase in other funds and where the funds initiated.
Mr. Cozzetto explained that it was for the scholarship programs and the funds come from the
foundation.
Mr. Jerry Tunheim, President of Dakota State University, appeared before the committee and
Document #6 was distributed. Mr. Tunheim discussed the mission of Dakota State University.
Senator Kleven asked how many of the FTE are faculty and what is their average salary. Mr.
Tunheim said eighty-four are faculty and their average salary is $52,000.
Representative Lange asked for the amount of funds in the foundation. Mr. Tunheim said the
university has $4 million in funds and it spends approximately $400,000 per year.
MOTION:
ADJOURN
Moved by: Apa
Second by: Madden
Action: Prevailed by voice vote.
LeAnn Allstot
____________________________
Committee SecretaryBob Drake, Chair
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