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Board of Technical Education seeks equipment funding, warns of M&R cut impacts and outlines enrollment goals
Summary
Board and technical college presidents presented FY2026 requests including a 1.25% per-student allocation increase, concern over a proposed cut to maintenance-and-repair funding, one-time equipment funding bill (HB1114) and a separate bill (HB1110) to buy a health-simulation center.
The South Dakota Board of Technical Education and leaders from the state—s four technical colleges presented requested FY2026 appropriations and system priorities, telling the Joint Committee on Appropriations they want to grow graduate output and maintain campuses and equipment.
Nick Wendel, executive director of the Board of Technical Education, said the technical college system produced 2,464 graduates in academic year 2023-24 and reported a full-time-equivalent (FTE) head count of 5,758. "We have a goal to produce more than 3,000 graduates per year by the end of the decade," Wendel said, adding that 2023 cohort placement outcomes exceeded 99 percent for employment, continuing education or military service within six months of graduation.
Wendel asked the committee to approve a 1.25% inflationary increase to the per-student allocation, which would raise the FY2026 per-FTE rate to $6,324.04. The board noted that the per-student allocation covers basic institutional operating costs across the four colleges.
The board warned of the impact of a recommended reduction to maintenance and repair (M&R) funding. Under prior policy the state targeted an annual investment equal to roughly 2% of replacement value for state-owned facilities; the governor—s FY2026 recommendation reduces that target to about 1.25%, producing an $824,000 cut to the system—s M&R appropriation. Wendel said campuses allocate state M&R by square footage of state-owned facilities and that a reduction of that size would force deferral of projects or an increase in the student M&R fee (currently $6 per credit hour), a step the board had not previously taken.
The board also described two pending bills. House Bill 1114 would provide one-time equipment funding of roughly $6.7 million, matched by about $3.3 million in local funds, to update laboratory equipment across career clusters (automotive, healthcare, precision machining, building trades and others). Wendel said the board intends to provide an itemized list linking equipment to program priorities. House Bill 1110 would request an appropriation to purchase the Health Care Simulation Center at Southeast Technical College; the board said it would present details on that bill in future committee sessions.
Presidents from Lake Area, Southeast, Mitchell and Western Dakota technical colleges described industry partnerships, Build Dakota scholarship placements, and housing constraints. Southeast Technical College reported 159 new Build Dakota scholarship recipients this year with an industry sponsor and more than 300 students on campus receiving Build Dakota awards; presidents said industry-sponsored scholarships and local employer demand help retain graduates in South Dakota communities.
Campus leaders repeatedly raised housing as a barrier to growth: the colleges said private housing markets constrain enrollment growth, and they noted a state statute in Title 13 that limits post-secondary institutions— ability to own or operate residence facilities, forcing reliance on private developers.
Why it matters: technical colleges train a high share of the state—s skilled workforce. The M&R funding level affects campus safety and program equipment in fast-changing career fields; equipment funding is central to expanding capacity for programs that align with employer demand.
