Committee on Appropriations A/V — 2018

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Dr. Michael Rush, CEO, Board of Regents, made opening remarks and introductions.00:01:08
Dr. Barry Dunn, President, South Dakota State University, and Wesley Tschetter, Vice President of Finance and Business, South Dakota State University, made FY19 budget request for South Dakota State University as recommended by the Governor.00:02:14
Dr. Dunn gave overview of South Dakota State University and emphasized the importance of accreditation. Students are exceling at national examinations. Ninety-eight percent of pharmacy students and 100% of dieticians passed the national licensure exams. 00:03:49
Iowa State, University of Nebraska, and University of Minnesota are competitors of SDSU and SDSU offers a bachelor degree at less cost.00:06:03
In FY17 South Dakota State University made a $963,000,000 of economic impact on South Dakota. In FY17, SDSU acquired $40,100,000 in federal and private grants and SDSU Foundation has raised $489,000,000 over the past 10 years. 00:09:40
South Dakota State University built a new American Indian Student Center and is ready to promote success for Native Americans in higher education.00:11:30
SDSU, Dakota State University, and the University of South Dakota work collaboratively and hope to improve the REED network.00:12:45
Challenges include no pay raises for staff in 5 of the past 10 years. Salary policy and an increase in health insurance costs have had an adverse effect on hiring and retaining staff.00:15:05
The strategic plan of SDSU is to be a premier land grant university.00:15:29
Mr. Jeff Mehlhaff, Budget Analyst, Legislative Research Council, presented FY19 Budget Request as recommended by the Governor. The FY19 Budget Request includes $47,089,084 in general funds, $24,000,000 in federal fund expenditure authority, and $174,042,715 in other fund expenditure authority totaling $245,131,799 and includes 1,647.7 FTE. - Page 3300:15:52
Prior Year Base & One-time Transfers - South Dakota State University - Page 3500:16:15
Current Year Base & One-time Transfers - South Dakota State University - Page 3500:16:51
A. Utility Expense Inflation - The agency requested an increase of $456,596 in general funds for increased utility expenses. The Governor recommends this request. - Page 3600:17:20
B. FTE Transfer - The agency is requesting to transfer 30 FTE from the Ag Experiment Station (AES) to SDSU proper. Restructuring and budget cuts, including the closing of Station Biochemistry had led to excess FTE within the AES. The Governor recommends this request. - Page 3600:18:03
Senator Peters - question - please provide more details about the 30 FTE transfer, which fund will be used, and which department will benefit from the transfers. Senator Peters requested additional information.00:18:11
Representative Howard - question - why do you need these additional 30 FTE and do you really need every position00:19:22
Senator Tidemann - question - how were the 30 FTE previously funded in the Olson Station Biochemistry Lab.00:22:20
C. ADRDL Fund Shift - The Governor requested an increase of $250,000 in general funds and a corresponding decrease in other funds for operating expenses for the State Animal Disease Research and Diagnostic Lab.00:23:23
1. SDSU Math Success Initiative - The agency requested an increase of $254,574 in general funds to expand a math success initiative at SDSU. The Governor did not recommend this request. - Page 3600:24:18
Senator Tidemann - question - was this math initiative coordinated with the South Dakota School of Mines & Technology and did you receive funding00:24:30
Representative Anderson - question- Revenues and Statistics: South Dakota State University - why is the Transfers of Current Funds to Plant and Loan Funds a negative balance - In FY19 it is estimated to be ($20,891,534) - Page 3700:25:20
SDSU Data - SDSU History of Fall FTE Students and SDSU Fall On-Campus Headcount History - Graph - Page 3800:26:34
Representative Lake - question - what percent of capacity is SDSU on-campus population00:28:04
Senator Cronin - question - why has the University Center in Sioux Falls had declining enrollment00:29:00
SDSU Undergraduate Degrees Awarded - FY12 to FY17 - Chart and SDSU Retention of Students - Year 2005 to Year 2016 - Chart - Page 39 00:30:20
Dr. Dunn mentioned most students leave the University for financial reasons and indicated the Dakota Promise Program would help.00:31:47
Representative Anderson - question - are other competing universities in surrounding states retaining students and requested additional information00:32:29
Senator Tidemann - question - why have the number of degrees in agriculture and sciences increased00:33:46
Senator Tidemann - question - how many students are from Minnesota and Iowa 00:34:45
Senator White - question - what is the reciprocity agreement with Iowa, Nebraska, and Minnesota00:35:30
Senator White - question - does SDSU offer agriculture education more inexpensively than other surrounding states00:36:17
Representative Howard - question - who decides that certain curriculum is included as an introductory course and why are you offering Arts and Science Course 111 - Introduction into Global Citizenship and Diversity00:37:00
SDSU Remedial Student History - Year 2007 to Year 2016 - Graph - Page 4000:39:30
Senator Tidemann - question - are you working with technical schools to promote opportunities for students to obtain a 4-year degree00:40:11
South Dakota Extension - FY19 budget request as recommended by the Governor is $8,643,341 in general funds, $6,005,826 in federal fund expenditure authority, and $2,025,166 in other fund expenditure authority totaling $16,674,423 and includes 190.4 FTE. - Page 41 00:42:00
President Dunn indicated the extension office staff provides courses to crop advisors, master gardeners, crop sprayers, chronic health management, waste management, and 4-H. These programs reach many South Dakota communities.00:42:55
The igrow website and the SDSU Extension Newsletter reache hundreds of thousands of citizens. Ninety-five employees contribute to the success of igrow and is a trusted source of information.00:46:10
Since the reorganization in 2011, $14.7 million in grants and contracts have been awarded to SDSU Extension and SDSU leverages these grants well.00:47:13
Senator Cronin - question - what are the breakdown of grants for SDSU Extension and identify what area it's going and requested additional information00:48:15
Senator Partridge - question - what are SDSU's Extension plans for western South Dakota00:48:36
Representative Lake - question - do you collaborate with other institutions for the igrow program00:51:00
Senator Cronin - question - do you collaborate with other institutions and entities to obtain information for igrow00:52:33
Agricultural Experiment Station - Budget Center - FY19 Budget Request as recommended by the Governor is $12,298,631 in general funds, $10,857,846 in federal funds expenditure authority, and $13,935,445 in other fund expenditure authority totaling $37,091,922 and includes 241.3 FTE. - Page 44 00:54:32
Dr. Dunn gave an update for the Animal Disease Research Diagnostic Lab. Contracts have been awarded and construction will start in the spring of 2018.00:55:00
Dr. Dunn gave an update on the Animal Experiment Station. Eight new FTE's were hired in the year 2014 and return on investment has been large. Grants and federal funding total $18M in FY17 and this year-to-date FY18 $16M year has been awarded. New knowledge through research will have had a huge impact on the South Dakota economy. Corn based ethanol has a low carbon footprint and with improvements could potentially break into the California gasoline market. Currently ethanol is banned.00:56:00
Representative Ahlers- question - what is difference between FY19 $37,091,922 in agency base funding request for (AES) and FY19 estimated $34,082,537 revenues (referring to Pages 46 and 47)01:00:00
A. FTE Transfer - The agency is requesting to transfer 30 FTE from Ag Experiment Station (AES) to SDSU Proper. - Page 4601:00:03
Senator Partridge - question - how does SDSU Extension and the experiment station do to promote whole foods and a healthy lifestyle01:01:10
Senator Cronin - question - how do you make healthy foods more affordable and what is the definition of organic. Senator Cronin said the public needs to be educated what really is happening and gave an example.01:07:30
Senator Peters - question - does SDSU teach precision agriculture and how does one know where dairy and agriculture products originate01:12:40
President James Abbott, University of South Dakota, introduced staff and gave university overview.01:16:20
President Abbott indicated the University Center in Sioux Falls is offering a 2-year associates degree in general studies and is catering to the 30% of students don't seek higher education in Sioux Falls area.01:17:30
The Discovery District is in development through a grant and has tenants ready to occupy research building when completed.01:17:45
President Abbott believes the research universities will be economic drivers in South Dakota's economy. President Abbott says our regental system educates students at a reasonable. The University has raised $250,000,000 to date and plans to raise a total of $300,000,000 by the middle of 2019.01:18:16
President Abbott said remedial efforts in mathematics remain a challenge and the university is addressing the issue and expects to see positive results. The law school scholarships are lacking and attracting a high-quality pool in recent years has been difficult. Students passing the bar exam has declined to 50% and this is a nationwide problem for non-elite law schools.01:20:05
USD has raised admission standards and reduced the law school class size. Money is being raised for law school scholarships. In three weeks, money was raised to provide tuition scholarships for 12 students for three years. An appropriation request for $300,000 per year for ten years was made.01:21:30
The South Dakota State Bar Foundation has donated $135,000 for law school student scholarships.01:23:06
President Abbott announced his retirement on June 30, 2018 after 21 years of service to the University of South Dakota.01:23:30
Jeff Mehlhaff, Fiscal Analyst, Legislative Research Council - FY19 Budget Request for the University of South Dakota is $36,590,845 general funds, $8,909,745 in federal fund expenditure authority, and $98,965,305 in other funds expenditure authority totaling $144,465,895 and includes 1,113.2 FTE. - Page 2001:24:10
Prior Year Base & One-time Transfers - Page 2201:24:33
A. Utility Expense Inflation - The agency requested an increase an increase of $151,796 in general funds for increased utility expenses.01:24:44
1. Mathematics at USD - The agency requested an increase of 2 FTE and $165,000 in general funds to expand Mathematics at USD. - The Governor did not recommend this request. - Page 2301:24:57
2. Authority for Increase Student Fees & Instructional Support - The agency requested an increase of 6 FTE and $3,450,000 in other funds due to increased student fees and room and board rates. - Page 2301:25:30
Representative Ahlers - question - what is USD's remedial math program and commented other schools have this same issue and is there collaborative planning with secondary education01:27:05
Senator Nesiba - question - would the remedial math program pay for itself through retention01:30:30
Representative Lake - question - what is total impact of the fee raised through the activity fee and room and board increase01:30:53
USD Data - USD History of Fall FTE Students - and USD Fall On-Campus Headcount History - Graph - Page 2601:32:44
USD Undergraduate Degrees Awarded FY12 to FY17 - Chart and USD Retention of Students Year 2005 to Year 2016 - Chart - Page 2701:34:08
USD Remedial Student History - Year 2007 to Year 2016 - Graph - Page 2801:36:25
Senator Cronin - thanked President Abbott for service and asked for more details about law school scholarship program01:37:00
Representative Karr - question - do you think some universities haven't found their rightful place and thanked President Abbott for his service01:41:23
President Abbott commented that investing in research that produces high paying jobs like biomedical engineering will be an economic driver for the State of South Dakota and President Abbott provided insight for the states future.01:44:56
Dr. Mary Nettleman, Dean, University of South Dakota Sanford School of Medicine, gave medical school update and made FY19 budget request as recommended by the Governor. 01:47:13
University of South Dakota School of Medicine - FY19 Budget as recommended by the Governor in $22,794,382 in general funds, and $11,282,091 in federal fund expenditure authority, and $23,096,896 in federal fund expenditure authority totaling $57,173,369 and include 321.5 FTE. - Page 2901:47:31
Dean Nettleman said South Dakota resident students or students with strong South Dakota ties receive priority to enter medical school. Last year's applicant pool was strong. Medical students came from sixty-six different communities and 44% of them came from towns smaller than 10,000 people.01:48:55
Dean Nettleman said the medical school started the Frontier and Rural Medicine Program (FARM) and it allows medical students to practice 9 months in rural areas. This FARM program has expanded and 10 students are participating in towns like Milbank, Vermillion, Parkston, Mobridge, and Pierre.01:50:00
Fifty-six percent of family resident students will practice medicine within 100 miles of their residency program. In-state residency programs help keep medical students in South Dakota. The medical school would like to continue to have funding for the rural residency program in Pierre. Current salary policy has made faculty recruitment very difficult. The medical school cannot expand without additional faculty.01:51:38
The medical school has many pipeline activities for high school students and Native Americans.01:53:50
In November of 2017, the University of South Dakota received the Spencer Forman Award. This is a national award that is given to one medical school per year who best fulfills their mission. Dean Nettleman considers this award a tribute to the State of South Dakota for their support of the medical school.01:54:30
Enrollment in the health sciences has increased 35% in the past five years at the University of South Dakota.01:55:50
Board Approved Budget Adjustment - The agency increased research center authority relating to awarded grants and contracts by $2,098,575 for federal funds and increased other fund expenditure authority by $1,427,134. The agency increased tuition and fees authority by $1,822,743 in other funds. - Page 3101:57:12
Senator Peters said the University of South Dakota's Sanford School of Medicine is important. Their student resident program in rural South Dakota helps practicing doctors learn the latest medical techniques. Senator Peters thanked President Abbott for his service and leadership at the University of South Dakota.01:58:20
Senator Tidemann - comment - thanked President Abbott for service to higher education in South Dakota.02:01:30
Representative Lake - comment - Thanked President Abbott for the transformation of the USD campus. He also said we are losing our graduates to out-of-state businesses because we are doing such a good job educating students in the regental system. 02:03:52
Dr. Marge Kaiser, Superintendent, South Dakota School for the Deaf and South Dakota School for the Blind and Visually Impaired, gave overview and made FY19 budget request as recommended by the Governor. 02:08:40
In 2017, the audiology department screened over 14,000 children and went to 150 sites across the state. In FY17 over 2,000 children received full audiology services. Rapid City has a new audiology clinic and is providing services to an underserved market.02:13:15
The FY19 Budget Request for the South Dakota School for the Deaf is $2,872,492 in general funds and $0 in federal expenditure authority, and $667,256 in other fund expenditure authority totaling $3,539,748 and includes 24.5 FTE. - The Governor recommends this request. - Page 7802:15:20
Current Base Transfer - Table - General Fund Transfers FY18 - Page 8002:15:25
A. Utility Expense Inflation - The agency requested an increase of $30,306 in general funds for utility expenses. The Governor recommends this request. - Page 8002:16:05
Dr. Kaiser gave an overview of on-campus and off-campus programs and their collaborative program with Northern State University. Their outreach program reaches 200 students that lasts until the student is age 22.02:17:00
South Dakota School for the Blind and Visually Impaired - FY19 Budget request is $3,046,677 in general funds, $71,426 in federal fund expenditure authority, and $494,799 in other fund expenditure authority totaling $3,612,902 and includes 48.6 FTE. The Governor recommends this request. - Page 8102:17:16
Transition Program Specialist - This specialist helps visually impaired students transition into the workforce or higher education.02:21:10
Northern State University has the only program that teaches the visually impaired in the State of South Dakota. Dr. Kaiser said there in a nationwide shortage of teachers for the visually impaired and feels this area has room for growth.02:21:39
South Dakota ranks in the top ten states in the nation that employs students that are visually impaired. Dr. Kaiser said 48% South Dakota visually impaired are employed and is concerned the other half are not employed. 02:21:45
A. Utility Expense Inflation - The agency requested an increase of $6,297 in general funds for utility expenses. - The Governor recommends this request.- Page 8302:24:30
B. Federal to Other Fund Shift - The agency has requested a decrease of $130,000 in federal funds because the summer school program is now being funded with other funds. - The Governor recommends this request. - Page 8402:24:40
Senator Cronin - question - how many graduates are there at the School for the Blind and Visually Impaired and suggested attending a graduation ceremony at the school and indicated it was an amazing experience02:25:38
Senator White - question - how many impaired students are employed and what state government agency should people contact to employ visually and hearing impaired 02:27:02
Senator Tidemann - complimented Dr. Kaiser for her advocacy for the visually and hearing impaired. He also said the states attorney in Brookings was visually impaired and a very good attorney. Question - what are the challenges of the school and what is Dr. Kaiser doing to do to address the large group of staff that are ready to retire02:29:20
Senator Tidemann - commented on feedback from regental system and salary policy and losing workforce to other states and what is doing Board of Regents to address issue02:31:00
Dr. Rush, CEO, Board of Regents, made closing remarks.02:32:50
Senator Tidemann - question - what is the effect of the current salary policy for higher education and commented higher education took more cuts than any other group last year02:33:10
Representative Anderson - question - could law school students take interim tests like the medical school program to help law students prepare to pass the bar exam02:36:44
Representative Carson - question - what percent of students drop out of the regental system from their freshman to sophomore years and what happens to those students02:39:30
Dr. Rush, CEO, Board of Regents, said Gross Domestic Product is based on the welfare of the regental system. Higher education is the driver for economic development and is the key to South Dakota's future.02:41:42
Adjourn - Carson/White02:44:21

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