REGENTS REPORT 

Higher Education Funding for the 21^st Century 

In considering higher education funding, a frequent question asks if the level of funding is right. A response to this question is a look at comparative costs associated with the delivery of higher education services. National and regional data on costs per full-time equivalent students offers meaningful information on this issue. The bottom line is that South Dakota spends $52 million less to educate students in its public universities than comparable institutions spend in nearby states.

Policy Indicators: FTE Spending

Universities across the country use a similar system for identifying expenditures. This system allows for easy comparison among institutions and university systems. The graph below shows that South Dakota is below other institutions in the region for spending on major activities per full-time student.

SOURCE: Board of Regents, Western Interstate Commission on Higher Education

 Policy Indicators: Percent of Budget

Using the same expenditure categories we can also compare spending on major activities as a percent of total budget. The graph at left shows that the South Dakota Unified System of Public Higher Education is putting money where it counts—on instruction. The graph on the right shows that South Dakota’s public university system is also lean on administrative spending (institutional support) but devotes more of its budget to academic support functions (i.e. libraries and computing).

SOURCES: Board of Regents, Western Interstate Commission on Higher Education

Quality Over All

Despite budget challenges, the Unified System continues to deliver quality to students and the state. South Dakota’s public university students consistently perform better than national averages on proficiency exams, see the graph at right.

E-mail us at: info@bor.state.sd.us

Conclusion

South Dakota’s Unified System spends less per full-time student in all categories compared to institutions in our region and across the nation. To get to the average amount, South Dakota would need $52 million in the base budget to perform the same functions. Compared to institutions in regional states, South Dakota’s public universities do the same with less. To maintain and improve quality in the years to come, to recruit and retain qualified faculty, to make the needed investments in technology and facilities the state’s investment in higher education must be maintained.