State representatives support a measure that takes South Dakota out of a regional coalition. State leaders entered the Midwestern Higher Education Compact in 2008. A push is now underway to end the contract with 11 other states.
South Dakota is part of the Midwestern Higher Education Compact. Proponents say the Board of Regents has gained from the membership. State lawmakers say enrollment has two primary advantages: it offers more buying power on technology purchases and savings on property insurance.
State Representative Scott Munsterman says more South Dakotans can benefit from the alliance.
“City, county, and K-12 can also utilize this buying club, but we have not for some reason been very good about getting that word out, so in an era where we’re looking for revenue here in our state budget but also think about it on that local level, these are the types of tool that we have to get out to them,” Munsterman says.
The $115,000 in yearly dues currently comes from the legislature’s budget. Supporters of ending the contract say the Board of Regents had months to consider funding membership and participating in the compact is not in the agency’s budget.
State Representative Jim Bolin supports cancelling the agreement.
“We aren’t gaining any genuine financial benefit by being a part of this compact, okay? I think that’s been clearly demonstrated. I don’t know why school districts and others don’t utilize this; I strongly suspect again it’s because there are many other opportunities out there,” Bolin says. “It’s time to bring this whole situation to an end. It’s not a new product. It’s been on the market for eight years.”
House Bill 1001 repeals the Midwestern Higher Education Compact contract after this year. The legislation moves to the State Senate on a vote of 49 to 15.