For Release August 8
Board of Regents Releases Budget Request for FY 99'
SPEARFISH, SD–The South Dakota Board of Regents is expected to approve priorities for the Fiscal Year 1999 budget request at its regular business meeting on the campus of Black Hills State University in Spearfish on Saturday, August 9. The Board is also expected to approve an agreement with Capital University Center to strengthen the delivery of higher education in central South Dakota.
The Board’s funding priorities are the instructional formula, human resources infrastructure, and technology infrastructure. The budget targets critical needs in the higher education system, according to Regent James Hart, Chair of the Committee on Budget and Finance. "The request puts money in the important areas of instruction and technology that are critical to providing quality education and service to South Dakotans."
BUDGET REQUEST
Board President David Gienapp of Madison stated, "The formula represents the costs associated with educating our students. Full funding of the formula has proven to be the best means to ensure that South Dakota provides adequate instructional resources to meet the needs of South Dakota’s students." Executive Director Robert T. Tad Perry explained that FY99 formula funding would allow for some courses that are now self support to be moved to state support tuition rates which would mean substantial savings to many students, particularly those studying off-campus. Self support courses receive no state fund support and therefore tuition and fees must cover the entire cost of instruction. "This is an opportunity for the state to treat all students alike by charging the same rate independent of where the course is offered," said Perry.
To study South Dakota’s human resources infrastructure the Board examined the salaries and benefits of higher education institutions in other states. They found that the average faculty salaries at the regental institutions were more than 16% below the salaries of the faculty at colleges and universities in surrounding states. The salaries of Career Service Act (CSA) exempt employees, who work chiefly in administration, were more than 21% behind the salaries of similar employees at neighboring peer institutions, those who have similar missions and enrollment. "South Dakota competes for faculty on the national level," said Perry. "When we do not offer competitive salaries, we are unable to recruit talented new instructors, nor are we able to keep the ones who develop their skills here."
The third funding priority is technology. "Today, graduates are expected to enter the workforce with practical knowledge of computer technology and equipment. We must continually upgrade and reinvest in technology so that South Dakota’s young people will be competitive in the job market," said Board member Pat Lebrun, Chair of the Academic Affairs Committee. In FY97 the Legislature provided funding for the first year of a three-year request for technology. In FY98 tuition revenues will not keep pace with the amount allocated by the Legislature for technology. Therefore, the Board is expected to ask for an increase to cover the shortfall.
The public universities have made substantial investments in technology to improve service and quality through the Reinvestment Through Efficiencies Program. A program which redirected university funds to critical areas. Gienapp said, "The technology infrastructure priority is essential to continuing the work of the universities in improving technology on our campuses. This priority seeks a partnership with the state to maximize investments in technology, which will mean better educational opportunities for South Dakota’s students."
CAPITAL UNIVERSITY CENTER AGREEMENT
The Board is likely to approve an agreement with the Capital University Center, a nonprofit organization that contracts with four regental institutions, South Dakota State University, University of South Dakota, Dakota State University, and Northern State University, to provide higher education in the Pierre area. If the agreement is approved, the CUC will work with the system rather than contract with each institution directly. An advisory council will include all of the presidents of the participating regental institutions, representatives from CUC, and Perry. "Institutions will share resources to meet the needs of citizens and employers in central South Dakota," said Perry.
The Board of Regents will next meet at the South Dakota School of Mines & Technology, Rapid City, October 9-10.