January 24, 2018 10:00 PM

South Dakota Tech School Tuition Becoming A Big Issue

Erika Tordsen reports:
Tech schools are becoming the go to option for a lot of students who want to start working right away. 

In his State of the State Address earlier this month, Governor Daugaard said tech school enrollment has jumped two percent in four years. 

South Dakota's tech schools may seem like the perfect solution to the state's workforce shortage, but some areas need work.  

"Our tuition is un-competitively high," said South Dakota Rep. Mark Mickelson. 

Right now, the tuition average for tech schools in South Dakota is around $20,000 to $25,000 for a two year degree. 

"It's the third highest in the country. Double the rate of half the states that touch us," said Mickelson. 

In 2014, T. Denny Sanford made a $25 million donation which the state matched to launch the Build Dakota scholarship. 

"The state's done a great job with Build Dakota, fantastic opportunity for students," said Tracy Noldner, STI Vice President of Student Affairs and Institutional Research. 

The scholarship was created specifically for tech school students. 

"It's paid for all my tuition, books, everything and that's helped me out a ton with just paying for college.  All I have to worry about is paying for the essentials," said student James Karrels. 

While the scholarships have helped and enrollment numbers are rising, Rep. Mickelson says the state still needs to do more to get even more students into these classrooms. 

"We've been looking at a tobacco tax," he said. "Simply because that is something that pulls favorably with the majority of the voting public, about 2/3."

"Great reception, actually from industry seeing this as a real positive for the state to find a way to reduce those costs for students," said Noldner. 

Mickelson led an effort to put the tax on the November ballot.  His proposal would put a dollar tax on a pack of cigarettes which would raise around $30 million every year. 

"We would take 2/3 of the extra money and we would use it to reduce tuition because that's the most critical element we've got," said Mickelson. 

Mickelson is also working on getting more legislative support to move forward. 

"We're out in conversation mode. There are a number of legislators that have some concerns about a tax and looking at what other ideas they might have," said Mickelson. 

In addition to lowering tuition, Mickelson says the state needs to bring back programs that were cut.

"We cut six manufacturing classes in Sioux Falls, which we really need. We cut all our heavy equipment operations programs in Sioux Falls," said Mickelson. 

They're programs that could help fill the workforce gap.

"Now those folks have to go to Sheldon, Iowa or Sioux City or Jackson, Minnesota to look for programs they might want," said Mickelson. 

Another way to keep those students in state, is offering more options. 

"One of the big things is, right now certificate programs. So these are shorter programs, they still give students the skills they need to get started in a position at a much reduced cost," said Noldner. 

It would save money and get them into the workforce quicker. Mickelson is hoping this is the year tech schools become a priority in Pierre and across South Dakota. 

"We have a discrepancy to attract a workforce that the future tells us we need. Everyone is talking about it and this is one way to take tangible action on it," said Mickelson. 

Mickelson says that along with helping out the tech schools, the tobacco tax would also help with other needs like retirement home reimbursement rates and community support providers taking care of the disabled. 

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