BOR Advances Infrastructure Investments | 8/27/26

PIERRE, S.D. - The South Dakota Board of Regents is advancing a series of fiscal year 2028 budget requests to preserve the state's investment in public university facilities and provide modern learning environments that support enrollment and workforce growth.

The Board's FY28 proposal includes investments for a new Ness School of Management and Economics building at South Dakota State University and infrastructure to support the relocation of the first 18 months of medical education for the University of South Dakota Sanford School of Medicine to Sioux Falls. The proposal also includes $19 million for ongoing deferred maintenance to extend the useful life of facilities and support the state's long-term goal of investing 2% of facility replacement value annually.

"Being good stewards of the facilities South Dakota has already invested in is an important part of our responsibility," said Board of Regents Executive Director Nathan Lukkes. "At the same time, we need to make strategic capital investments where student demand and workforce needs are growing. These projects will provide modern learning environments while strengthening the state's long-term investment in higher education."

The Board is requesting $10 million in state funding as part of a larger project supported by private contributions and bond funding to construct a new Ness School of Management and Economics building at South Dakota State University. Enrollment in the school has grown from approximately 750 students in 2018 to more than 1,300 in 2025, with enrollment projected to reach 1,500 by 2030. The proposed facility would provide modern instruction, research, collaboration, and student spaces to accommodate continued growth.

"The tremendous growth SDSU is experiencing in its business and economics degrees is a result of several years of advancement with degree programs, accreditation, and faculty who are educating the future leaders of South Dakota," SDSU President Barry Dunn said. "The investment in a new facility for the Ness School of Management and Economics will not only meet the needs of our students to learn, but also create space for our faculty to teach, collaborate, conduct research, and engage with the state and regional leaders to advance our economic future."

The FY28 proposal also includes $6.2 million for Phase I of the University of South Dakota Sanford School of Medicine's relocation to Sioux Falls. The funding would support essential equipment, furniture, and advanced information technology and audiovisual infrastructure as the medical school moves the first 18 months of its M.D. program to Sioux Falls.

The relocation will expand opportunities for medical students to learn alongside clinical faculty and strengthen collaboration with South Dakota's health care systems. The move will also create opportunities for expanded research and academic programming in Sioux Falls while supporting the state's long-term need for physicians and other health care professionals.

"These investments are about more than bricks and mortar. They are about creating opportunities, strengthening partnerships, and building the future of health care in South Dakota," said USD President Sheila Gestring. "We are deeply grateful for the commitment of our health system partners, donors, state leaders, and advocates whose support is making this transformation possible. Moving the first 18 months of medical education to Sioux Falls will connect students more closely with the state's leading clinical environments while creating new opportunities for collaboration, research, and hands-on learning. Together, we are creating a stronger pipeline of health professionals and expanding our capacity to meet South Dakota's health care needs for years to come."

The infrastructure investments reflect the Board's broader approach to responsible stewardship of state resources. If approved by lawmakers, the FY28 funding would help preserve South Dakota's public university facilities while advancing projects that respond to demonstrated student demand and the state's long-term workforce needs.