As news spread Tuesday of a shake-up at the National American University campus in Rapid City, Pat McElgunn said he was unaware of the changes but not surprised by them.

McElgunn, the public-affairs director of the Rapid City Area Chamber of Commerce, said change is constant in business and education, and NAU is obviously trying to make both work in Rapid City.

That's difficult in an educational world full of new student needs and demands where "the cost of education exceeds inflation by leaps and bounds," he said.

"It's a business. Because it's a privately held business entity, they're looking at how to remain economically viable, make the best use of their resources and focus on areas where they can get the best return on investments," McElgunn said.

The school that began in 1941 in downtown Rapid City as the National College of Business has spread to 17 locations in seven states. It is important to Rapid City both because of the education it offers and the boost it provides the community, McElgunn said.

With both the downtown school and the system headquarters located in town, NAU provides about 275 jobs in the community. Sixty of those are at the Rapid City campus, 10 more and an NAU facility at Ellsworth Air Force Base and the remainder in corporate headquarters on U.S. Highway 16 south of town.

NAU offers educational options in Rapid City that fit nicely with the degree options at the South Dakota School of Mines & Technology without overlapping, McElgunn said.

"They're an important component of the city's economy and also offer opportunities for education that may otherwise not be available," he said. "I don't know the demographics specifically, but from the people I know who attend there, they draw from nearby states for their particular specialty that might not otherwise be offered."

Data by the South Dakota Board of Regents discussed during the 2008 state Legislature showed a population of about 100,000 people age 26 and older in six Black Hills counties, including Pennington. More than 26 percent of those people have some college coursework but not a degree.

"There is a population here that this institution can serve," McElgunn said. "And the more educated your work force, the more economic vitality you have in a community."

Mike Buckingham, NAU vice president for construction, said Tuesday that the Rapid City school is adjusting to market realities that must focus educational programs on the growing population of mid- to late-20s residents who are hungry to continue their education. That group is driving the successful NAU schools in other areas, he said.

The changes in Rapid City are not a sign that the school is preparing to close, Buckingham said. In fact, the opposite is true, as long as the school adapts to the new times and coming challenges, he said.

"There's no danger of Rapid City (NAU) closing down as long as we remain competitive in this market," Buckingham said. "And that's what we're trying to do, is position ourselves so we can compete and be competitive in the future."

The school is unusual in that it most resembles an old-style college campus. The Rapid City institution must be strong and viable to justify keeping the NAU headquarters here, Buckingham said.

"In a lot of ways, it's hard today and tomorrow but good news for next year and after that, and on down the line," he said.

See related stories:

Business decisions drive NAU changes

NAU students somber after hearing news

NAU: Leadership change and program change not related

Contact Kevin Woster at 394-8413 or kevin.woster@rapidcityjournal.com