Goal 9

Goal 9—External Funds: The universities will increase non-state financial support.

The Regents recognize that, as demands on the state’s general funds increase and the cost of operating universities also climbs, other sources of revenues must be found. These kinds of revenues include endowments, which are established funds provided to the foundation affiliated with each university. Other sources are grants and contracts with the federal or local government, private foundations, corporations, and individuals for the performance of certain services or functions. Foundations, private individuals, and corporations also provide money for scholarships. Capital fund drives raise funds used to maintain, repair, renovate and construct campus buildings, purchase equipment, and acquire real estate. Performance toward Goal 9 is rewarded through incentive funding.

As a part of the new funding framework the Regents have designated that base budgets are determined for each university to promote multi-year planning. The base budgets receive adjustments for inflation as appropriated by the Legislature. In addition, an amount equal to five percent of the universities’ tuition and general funds (after reinvestment and salary competitiveness) will be distributed through incentive funds. Each university competes against itself to improve its performance in areas important to the South Dakota system of higher education. The Regents have set targets for the universities in five of the nine state policy goals. If a university achieves its target in a particular incentive, it receives resources from that incentive fund. The incentive funds and their targets for FY99 are displayed below.

State Policy Incentive Funds Baselines & Targets Approved By the Board
	BHSU	DSU		NSU	SDSMT	SDSU	USD
1. Access for Residents
Base: Fall 1997 FTE	2,197.7	862.8		1815.9	1,264.5	5,524.4	4,279.1
Target: % Change	1.50%	4.50%		1.00%	1.50%	1.50%	1.50%
2. Economic Growth Program Enrollment
Base: Fall 1997 Headcount	484	361		243	360	419	871
Target: % Change	3.93%	8.03%		4.12%	6.11%	5.97%	8.04%
3. Academic Improvement
Base: % Reaching expected level (weighted average)	86.63%		76.63%	83.25%	96.88%	91.50%	94.00%
Target: Percentage reaching expected level	100%		100%	100%	100%	100%	100%
4. Collaboration
Base: FY98 Collaborative FTE	63.38		98.73	36.97	102.61	235.04	211.42
Target: % Change	12%		8%	30%	8.00%	10%	10%
5. External Funds
Target:	$1,186,339		$977,234	$1,403,585	$5,809,263	$10,271,434	$12,488,409

This section of the Fact Book also includes total fund sources, operating budgets by NACUBO (National Association of College and University Budget Officers) categories, and budgeted mean salaries by category.