76th Legislative Session _ 2001

Committee: Senate Appropriations
Wednesday, January 24, 2001

                                            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. Koskan
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

Dr. Marje Kaiser, Superintendent of the South Dakota School for the Blind and Visually Impaired, approached the committee. Dr. Kaiser explained the mission and purpose of the school.
Dr. Kaiser spoke about the recommended budget for FY2002. She stated that the $12,000 increase in general funds is for operations and maintenance which includes supplies, travel expenses, faculty development, and postage.

Senator Dennert asked if the summer program funds the committee appropriated in FY2001 had restrictions imposed upon it. Dr. Kaiser said that the funds come from an IDEA federal grant and the school has to write grants to DECA, so the funds come indirectly to them through this process and it is awkward.

Representative Richter asked how much money is being recommended for the preschool program.

Dr. Kaiser said $50,000.

Senator Duxbury asked how many students attended the preschool program. Dr. Kaiser said approximately 25 students enroll each year.

Senator Kleven asked how many of the school's FTEs are faculty. Dr. Kaiser stated that nine of them are classroom teachers and seven of them are specialized outreach teachers.

Dr. Jon Green, Superintendent of the South Dakota School for the Deaf, approached the committee, along with Mr. Bill Van Den Hemel. Dr. Green spoke about the special services the school conducts for the deaf and general information regarding the school.

Senator Kleven asked how many of the school's FTEs are faculty. Dr. Green said that 16 are teachers and 25 are specialized outreach employees.

Mr. Van Den Hemel spoke about the Ten Year Capital Plan and the activities in which the students are involved in.

Dr. Karen Whitehead, Vice President of Academic Affairs, South Dakota School of Mines and Technology, approached the committee along with Mr. Tim Henderson, Vice President of Administration. Ms. Whitehead talked about the mission and purpose of the university. Mr. Henderson explained the recommended budget for FY2002.

Senator Kleven asked if the university is involved with any other university in South Dakota with the carbon sequestration research. Mr. Henderson stated that they are in cooperation with South Dakota State University.

Senator Kleven asked how many of the university's FTEs are faculty. Mr. Henderson said 120 of them are faculty.

Representative Derby asked what occurs when a professor from SDSMT invents a new idea and wants to present it to the public. Are they required to notify the school? Mr. Henderson said that if one of the university's professors invents an idea, that professor must submit the idea to the board of directors. If that idea is sufficient to take action, the board then determines if there is enough budgeted to carry through with the theory, how much money the professor must raise to continue, and if the project can compete with industry standards. If the project is completed using outside resources, which tends to be the norm, then the industry that has taken on the project will then make a contract with the professor stating the percentage of gain for the professor and the school in royalty monies.

Senator Duxbury asked what percentage of students in the school are out-of-state students and international students. Mr. Henderson said that 20 percent of the students are from out of state and

10 percent are international.

Representative Richter asked what percentage of the graduates from the school remained in South Dakota. Mr. Henderson said an average of 20 percent remain in the state after graduation.

Dr. Thomas Flickema, President of Black Hills State University approached the committee. He stated the purpose and mission of the school and the success of FY2001.

Representative Lange asked who devised the target number of students for base funding. Dr. Flickema stated that the Executive Director of the Board of Regents, Dr. Robert Perry, and he determined the number.

Representative Richter asked if the renovation of the Cook facility located on the BHSU campus should be done or would a new building be more appropriate. Dr. Flickema stated that the universities were told to renovate rather than build.

Senator Kleven asked how many of the university's FTEs are faculty. Dr. Flickema stated that 113 are faculty members.

Representative Clark asked how the university is going to judge the positive impact of the Center for Excellence Program. Dr. Flickema state that it will take time to see a positive difference with the K-8 schools, but the university will keep the public informed.

The committee recessed at 10:00 AM

The committee reconvened at 10:15 AM

Dr. Peggy Elliott, President of South Dakota State University, approached the committee. Dr. Elliott stated the mission and purpose of the university and its programs.

Mr. Michael Reger, Vice President of Administration, South Dakota State University, spoke about Solberg Hall and how its complete renovation is coming from outside funding rather than the state's general fund.

Senator Kleven asked how many of the university's FTEs are faculty members. Mr. Reger said 554 are faculty members.

Representative Derby asked about the fund-raising campaign that netted $52,400,000 and if Solberg Hall was part of the reason for the solicitation of monies. Dr. Elliott stated that Solberg Hall was not included in the $52,400,000.


Representative Lange asked how many more students could be accommodated by the university. Dr. Elliott stated that 400-600 more could be accommodated but then the decreases in the budget could not be met.

Representative Adelstein asked about the funds that are set aside for the art fund. Mr. Reger stated that those funds must remain in an account for the university's debt service obligation. According to regulations, 150 percent must be on hand at all times.

Senator Drake asked if the university had the $52,400,000 in a cash balance account. Dr. Elliott stated that it has been spent over a five-year period and the university is in the third year of spending.

Mr. James W. Abbott, President of the University of South Dakota, approached the committee. He spoke on the use of the name of the university by Sioux Valley Hospital in Sioux Falls and the purpose and plan of use.

Senator Drake asked if the university can remain unbiased with all the hospitals in South Dakota if the use of the name is on only one hospital. Mr. Abbott stated that they are remaining unbiased and they work with a few hospitals within the state in the medical school programs, but cooperation comes most often with Sioux Valley Hospital.

Senator Drake asked if the Board of Regents had the legal right to sell the name to Sioux Valley Hospital and for a list of statutes stating that fact. Mr. Abbott stated that the university sought outside legal counsel and he believes the process to be legal.

Representative Klaudt asked if Sioux Valley Hospital is paid for the use of the buildings being used by the medical school program. Mr. Abbott said the university works cooperatively with them and Sioux Valley is not paid.

Representative Klaudt asked if Rapid City Regional Hospital was offered the use of the university name. Mr. Abbott stated that they were not.

Representative Klaudt asked if there is a relationship between University Physicians and the university. Mr. Abbott stated that the university recruits doctors who will spend one-third of their time teaching within the university with no compensation and the other two-thirds of their time they are able to practice medicine within the University Physicians Clinics with compensation from patients.

Senator Apa asked about the terms of the contract between the university and Sioux Valley Hospital. Mr. Abbott said the contract is, which is a lease, is for 30 years.



MOTION:     ADJOURN

Moved by:    Dennert
Second by:    Koskan
Action:    Prevailed by voice vote.

LeAnn Allstot

____________________________

Committee Secretary
Bob Drake, Chair


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