Mr. Ray Christensen reported that the Department of Education and Cultural Affairs' budget is recommended to increase by $10, 263,793. This represents a 2.3 per cent increase over the department's FY02 budget. Of this, $129,273 is comprised of general funds while federal authority is recommended to increase by $10, 481,310. Other Fund authority is recommended to decrease by $346,790. The department's staffing level is recommended at an additional 5.0 FTE, for a total of 176.2 FTE.

The department's budget can be broken down into two categories: State Aid to Education and the department's “agency budget.”

State aid to education includes aid to the 176 public school districts, the 4 post-secondary technical institutes, Youth-at-Risk funding, and the Technology in the Schools program.
General fund K-12 State Aid is recommended at $305,107,804 ($266,854,606 General Education and $38,253,198 Special Education). Youth-at-Risk is recommended at $450,000 General and zero other fund authority, as the Youth-at-Risk Trust Fund has been rolled into the Education Enhancement Trust Fund. Technology in the Schools is recommended at $10,751,325; with $8,191,325 of that in General funds and the remainder other fund authority. State Aid to the Technical Institutes is recommended at $15,533,664 in general funds.

The agency budget is recommended at $12,022,170 in general funds, a decrease of $267,591. This represents 3.5% of the department's entire general fund budget. Federal funds are recommended at $117,598,863 and other funds recommended at $2,029,447.

Mr. Christensen informed the committee about the various state-mandated tests: Stanford Achievement Test-9, Writing Test for Grades 5 and 9, and the Dakota Assessment of Content Standards (DACS).

Mr. Wade Pogany (Document #3) informed the committee about the major aspects of the DACS (Dakota Assessment of Content Standards). The DACS was established in the 2001 Legislature to require all students in grades 3,6, an 10 attending a South Dakota accredited school, take a criterion- referenced test designed to demonstrate progress on the South Dakota Content Standards. Students will be tested once in the fall and again in the spring of the same year in Reading and Math. Science and Language Arts tests are in development. EdVision Corporation is the vendor to deliver the assessment. DECA has contracted with the BUROS Institute at the University of Nebraska to conduct an independent study on the validity, reliability and alignment of the DACS test.

Representative Pummel asked about the repercussions for low performing schools as results of the DACS test are compiled and reported. Mr. Christensen replied that the schools have a three year period to rectify the situation.

Mr. Pogany stated that there is an alternative written form to the computer-based DACS test.

Senator Cradduck asked about aspects of the test for English as a Second Language students. Mr. Christensen stated that those students have a one year exemption to the test.

Senator Apa asked about the cost of the contract with EdVision and BUROS Institute.
Mr. Christensen responded that $500,000 was appropriated, and of that “a hundred or eighty” thousand is the contract with BUROS.

Representative Sutton asked about what the DACS results are showing. Reading test shows students are at grade level and in the Math test students in the lower grades are doing well and students in the higher grades can do better. Mr. Christensen said that all schools know the content standards and the appropriate adjustments will need to be made.

Senator Greenfield asked about the connection of the Internet for testing in the schools. Mr. Pogany said that his office works with the schools to address any technical difficulties.

Lt. Bill Mickelson, Administrator of the South Dakota Internet Crime Enforcement Unit informed the committee about the task force formed to investigate what is going on in South Dakota in regard to child pornography via the Internet. Governor Janklow wanted a unit in place in October, 2001 with the following missions: (1) provide forensic support (technology support), (2) provide coordination of investigation in South Dakota, (3)***Important one_be pro-active in communities to educate and protect children who are on-line.

Mr. Ray Christensen introduced Ms.Karen Fox to speak about AREA, Advanced Reading Enhancement Approach, which assists South Dakota 1^st, 2^nd, and 3^rd grade teachers in gaining a deeper understanding of the literacy acquisition process and instructional practices that will allow students to become engaged life-long literacy learners.

Ms. Karen Fox, (Document # 4) informed that committee about the Advanced Reading Enhancement Approach which was initiated by Governor Janklow during the 2000 legislative session and is funded by the South Dakota legislature. The steps involved: (1) understanding the theory and rationale for the new content and instruction, (2) observing a model in action, (3) practicing the new strategy in a safe context, (4) trying out the strategies with peer support in the classroom. Each teacher who successfully completes the training will receive a $700 stipend and will have the opportunity to earn three graduate credits from the University of South Dakota. The South Dakota Advanced Reading

Enhancement Approach (AREA) has the following elements: Guided Reading, Word Development, Self-selected Reading, and Writing.

Ms. Fox talked about universities getting involved with the training of their prospective teachers in the Advanced Reading Enhancement Approach.

The committee recessed at 10:15AM and reconvened at 10:30AM

Mr. Ray Christensen informed the committee the Arts_ Increase in funding from the National Endowment for the Arts_$100,000 federal.

Mr. Stacy Krusemark talked about the increase for History . Space Billing increase-$40,000 increase in General funds. 2. Bond Redemption - $3,525 decrease in General funds as per bond payment schedule. 3. Seasonal Archaeologists - increase of 4.0 FTE and $103,210 in other fund authority.

Tami Bouck presented the Office of Technology Overview, (Document #5) High School Classes via Videoconference and Advanced Placement Classes. StepStar Programming, Buffalo Roundup, Conversation with World War II Veterans, Dr. Seuss' Birthday-Read Across America, Technology for Teaching and Learning (TTL Academies), South Dakota Ed Web, South Dakota Alliance for Distance Education (Star Schools),

Representative Clark asked about the Gates Leadership Grant which funds the library and the second Gates grant which funds leadership and technology. More information is needed from DECA in regard to this grant.

Larry Nelson introduced representatives from four technical schools which include: Chris Paustian, Mitchell Technical Institute; Stan Vittetie, Southeast Technical Institute; Gary Williams, Lake Area Technical Institute; Ray Mueller, Western Dakota Technical Institute.

Larry Nelson presented an overview of the Technical Institute Structure which included: operating structure, benefits of structure, institutional mission, accreditation, program completers, wage and employment information.

Stan Vittetie, Southeast Technical Institute, (Document #7) presented the average cost of attending (tuition and fees) a technical institute.

Gary Williams, Lake Area Technical Institute, (Document #8) presented information on the Agri- Production Dairy Option which will be offered at Lake Area Technical Institute.. This is in immediate response to an industry need. This is a course offering for students who wish to remain in or begin a career in the dairy industry.