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Southeast Technical asks state for $4.65M to buy simulation center; debate centers on tuition freezes and student fees
Summary
Southeast Technical College asked for a $4.65 million grant to purchase the Health Care Simulation Center in Sioux Falls rather than continue leasing. Supporters said the center expanded health‑program enrollment; BFM urged caution because the state has made multiple prior appropriations to technical education and equipment.
Representative Amber Arlant and Southeast Technical College officials asked the committee to grant $4.65 million so the college can purchase the Health Care Simulation Center in Sioux Falls rather than continue a long‑term lease.
Southeast Tech converted the former Zeal Center into a shared simulation center for five health programs; partners (Avera and Sanford) paid renovation costs and the Sioux Falls Community Foundation covered lease payments during an initial period. The college planned a modest per‑credit fee ($5/credit) to build a purchase fund over ten years, but a statewide tuition and fee freeze for several years prevented implementing that fee. President Corey Klosman told the committee the fee would now need to be about $7 per credit hour over a shorter period to reach the same target.
Local and system considerations
STC and its board of technical education say the center increased enrollment in the affected programs by about 24 percent in its first year and produced an 11 percent increase in graduates. Supporters said buying the building avoids rising lease costs and secures training capacity for the region’s growing health workforce.
Budget office concerns
The Bureau of Finance and Management urged caution. BFM noted the state has already provided several capital and equipment appropriations to technical colleges in recent sessions (including $4.5 million to this project in 2022) and recommended consideration of whether this purchase should be funded by institutional fees or left to a future funding cycle. BFM also said a separate upcoming equipment request will ask for matching funds across all four technical college campuses.
Committee action
Committee members discussed options including a partial appropriation, a smaller student fee combined with a partial state grant, or leaving the lease in place while the college uses alternate financing. The committee deferred final action and asked parties to explore alternatives and provide additional details about fee impacts on students and the development foundation’s lease timeline.
