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Tech Institute Summer Presentation - 6/27/12 Wednesday, January 30, 2013 2:34 PM {?feud !?Zfako/al hni I lnstitut - i sdteched.com South Dakota Postsecondary Education Interim Committee June 27, 2012 .l south dokoto ~ ----...- f D~- E

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SLIDE 1

Tech Institute Summer Presentation - 6/27/12

Wednesday, January 30, 2013 2:34 PM

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South Dakota Postsecondary Education Interim Committee

June 27, 2012

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In the beginning ...

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S d t e C h e d · C O m

  • There was a need for post-secondary training

to meet the workforce demand for employees with job ready skills.

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SLIDE 3
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Federal and State

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1963 Vocati nal ducationAct Fed ral) 1965 South Dakota Legi lature Passed legi lation to establish a syste1n to accommodate post-secondary technical schools.

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Community Initiative Required

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  • In order to start a school, the local community/school district

had to donate land and building .

  • Watertown was the first community to establish a school

(1965) followed quickly by Rapid City & Sturgi (1966) and Mitchell & Sioux Falls (1968).

  • The Sturgi and Rapid City chool were combined in 1978.

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SLIDE 5

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Common Elements

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  • Initiative of

local school and con11nunity lead rs critical.

  • Funding was assisted by the Manpower Development

Training A t (Federal).

  • Direct link t workforce development required -

training progratns had to b in areas wh r stud nts could go directly into job market.

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How Does a Post-Secondary Technical Institute Compare to a Community College?

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  • Te hnical In titute pr gram all have advi ry committe

which review curriculum content and technology.

  • Technical Institute programs must demonstrate a demand for

graduate and placement mu t meet federal tandard

  • 01rununity Colleges offer a general education degree

de igned £ r tran fer t a bach 1 r degree granting c llege r

  • university. In addition, some community colleges have

technical pr gram .

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SLIDE 7

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South Dakota Technical Institutes 2015

Vision: Be the leader in Technical Education and training through excellence and inno ation which enables our workforce to

capital ze on the emerging technologies of the 21st century and assist South Dakota to impact economic de elopment solutions

in the global marketplace.

Mission: To meet South Dakota's

evolving skilled workforce demand by providing quali~ graduates with the general op itudes, knov ledge, technical skills, and people skills necessary for entry into and advancement in their chosen career field.

Goals/Objectives:

  • People - 1.5% increase in enrollment to fill industry demand for Technicians
  • Product- Increase graduates; Placement rate of 93% in SD
  • Plant-Adequate Safe facilities, refresh of equipment mandatory to graduate

job-ready tech nicians

  • Plan - South Dakota's Technical Institutes share a common direction and

focus to promote economic prosperity for South Dakota.

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SLIDE 8

,;youd'!525~uv Current Statistics

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FTE

Graduates Headcount (Spring 2012)

LATI

1718 1541 630

MTI

1055 1137 421

STI

3175 2320 875

WDT

1224 978 335

TOTAL

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2011 Placement

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6 Months After Graduation: 2289 Graduates/2019 located (88%)

  • 350 Continuing Education
  • 1651 available for employment
  • 1581 employed {96%)

1348 employed in field of study {85%) 1625 graduates remained IN SOUTH DAKOTA! {80.5%)

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Why is State Investment in the Technical Institutes important?

  • Technical Institute graduates annually infuse South Dakota's workforce

with skilled labor.

  • Critical Shortages in Manufacturing (Machinists, Welders, Electronics,

Robotics, etc)

  • Shortage impedes SD ability to expand sectors
  • Allied Healthcare workers produced by techs (Nurses, Med Assistants,

Rad Techs, Ultrasound Techs, Dental Assistants, Med Lab Techs, etc)

  • Energy and Telecommunications Sectors
  • Agriculture
  • Technicians (Diesel, Automotive)

TECH GRADS VITAL TO SOUTH DAKOTA'S FUTURE!

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SLIDE 11

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"

...

There is literally a skills disconnect between skills in demand and skills in the labor force, between supply and demand."

  • - Michael Brown, Economist, Wells Fargo Securities, Bloomberg website,

April 8 2012

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SLIDE 12

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Independent Consultants referring to South Dakota's Technical Education:

" ... With one exception, Montana, South Dakota has the lowest percentage of enrollment in 2-year colleges, 15%

....

the imbalance between these numbers seems to ignore the reality of present and future workforce

  • needs. According to the latest US Bureau of Labor Statistics

Report less than a quarter of jobs in 2018 will require a 4-year degree or higher. These data also show that the jobs requiring an Associate's Degree or certification will be the fastest growing segment of need."

  • - Pressing the Advantage: A Regional Growth Strategy for the 1
  • 29 Corridor, May 2010
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Bureau of Labor Statistics, 2012:

  • A Technical Institute graduate makes a

STARTING SALARY $5,600/year more on average than a HS graduate

  • $39,200 of ADDITIONAL economic impact PER

STUDENT their first year. (Income rolls over 7x.)

  • Career average, a graduate will make

$19,939/year over a peer high school graduate (US census data)

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SLIDE 14

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Four Sources of Current Funding for Technical Institutes:

  • State Appropriations
  • Tuition/Fees
  • Perkins (Federal Funds)
  • Other (Donations, enterprise funds, grants)

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SLIDE 15

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Ongoing Legislative Legislative Total GOED Funding in Allocation Allocation Fundi ng for General Repair and Program Equipment

  • Approp. Act

Maintenance Development

FY 01

13,979,215 13,979,215 1,962,614 FY 02 15 136 800 15 136 800 1 576 715

FY 03

15,533,664 15,533,664 2,205,414

FY 04

15 752 326 15 752 326 1 029 338 FY 05 16,993,467 16,993,467 402,913

FY 06

16 960 433 1400 000 18 360 433 729 840 FY 07 18 076 536 360 000 800 000 19 236 536 810 367

FY 08

19,127,140 360,000 800,000 20,287,140 890,628

FY 09

19 487,140 1,000 000 2 000 000 22 487 140 FY 10 20 176 600 20 176 600

FY 11

21115 827 21 115 827 FY 12 20 447,502 20 447,502

FY 13

21,396,857 21,396,857*

'*

' $500,000 from egislature to establish Critical Need Scholarships not included .

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MTI and LATI to fund designated WIN programs. ($649,000) ~

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Total Funding/ Percentage increase 15,941,829 16 713 515 / 4.8% 17 739,078 / 6.1% 16 781 664 / (5.4%) 17,336,380 / 3.3% 19 090 273 / 10.1% 20 046 903 / 5% 21,177,768 / 5.6% 22 487 140 / 6.2% 20 176 600 / 2.1% 21115 827 / 4.7% 20 447 502 / (3.2%) 21,396,857/ 4.6%

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a balancing act

During o time when stoles all across the notion hove seen Funding Per Student FTE (30 aedit hourt)

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  • decline in re.enue, South

Dakota is faring better than

  • most. But thot doesn't meon

we hovcn't seen our shore of

struggles, and at the technical instituf s, our students hove been asked to shoulder more

  • f thot burden. Despite th,s,

we continue lo do oll we con to keep costs down while still prov,d,ng top-notch training in cuthng-edge fields.

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  • 2009-10

2010-11

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SOUTHEAST

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2011-12

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SLIDE 17

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State Financial Support of SD Post-Secondary Ed 2007-Present

55%

,.._SO Tech Institutes

35% 30% - - - - - - - - 25% FY08 FY09 FYlO FYll

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SLIDE 18

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What would the Technical Institutes like to see the Legislative Committee accomplish?

  • Take steps to make quality technical education

affordable for students

  • Closely examine the impact a shortage of skilled

technical graduates has on South Dakota economy

  • Develop strategies to target funding to invest in the

training programs which have the biggest impact

  • n various regions of the state

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