South Dakota Mines highlights quantum center, enrollment and deferred maintenance needs

Nathan Lucas, executive director for the South Dakota Board of Regents, and Brian Tandy, president of the South Dakota School of Mines and Technology, told the Joint Appropriations Committee about the school’s enrollment trends, research funding and facilities needs.

The school said its programs are producing high-paying graduates and noted specific investments the legislature has already made in campus facilities and in quantum research.

The presentation emphasized why Mines views state support as an investment in workforce and research capacity. ‘‘Postsecondary education in South Dakota pays,’’ Executive Director Nathan Lucas said, noting Mines’ contribution to workforce readiness. President Brian Tandy said the recently opened Core Mineral Industries Building and the state’s investment in a Center for Quantum Information Science and Technology are already having positive effects on campus, including leveraged federal funding.

Mines officials gave the committee several specific figures and program updates. The institution reported roughly $20–$25 million in annual external research funding, an undergraduate retention rate of about 84 percent, and around 2,600 students with strategic growth targeted to roughly 2,850–3,000. Tandy said the quantum investment of $1.2 million from the state has helped the school secure a $5 million National Science Foundation grant. "We received 1,200,000 for quantum research. We've already been able to leverage that investment from the state to secure a $5,000,000 National Science Foundation grant," Tandy said.

Officials described curricular additions and workforce pipelines. The school has launched a minor in quantum information science, a gateway-to-engineering certificate for high-school partnerships, a planned bachelor’s in data science, and work toward a robotics degree. Mines said 41 percent of its graduates remain in South Dakota and highlighted industry partnerships such as Nucor, which the school said plans substantial internship recruitment.

Tandy and provost Lance Roberts answered questions about housing, international students and intellectual property. Roberts said Mines has about 100–150 international students, mostly graduate students, and that university policy assigns intellectual property rights to the institution with a royalty-sharing arrangement that typically allocates roughly half of royalties to inventors and half to the university.

Officials warned about facilities and insurance pressures. Mines identified about $27,400,000 in deferred maintenance over the next decade and reported steep insurance increases; the presentation cited a roughly 424 percent increase in building insurance from FY 2019 to FY 2024. Heather Forney of the Board of Regents explained to the committee that the state captive’s insurance assessment is based on current replacement value, not building condition.

The presentation also noted national security–related research and the need for network upgrades to meet Department of Defense contract requirements. Tandy said some DOD awards require US-person-only staffing and secure infrastructure, and the university is planning investments to upgrade networks and comply with those requirements.

Looking ahead, Mines told the committee it will continue to recruit faculty, expand research in quantum and other strategic areas, and pursue partnerships with industry and nearby institutions to increase the number of graduates who stay and work in South Dakota.

Mines’ presentation concluded with an invitation to a ribbon-cutting for the new Core Mineral Industries Building and a request that the legislature consider ongoing maintenance needs and insurance cost pressures when setting budgets.