Amid talk of teacher pay, school choice bill gains traction

As the Legislature delves into fundamental changes to South Dakota's public education system, a Senate committee inserted a new variable Tuesday that could provide private and parochial schools a piece of the funding pie.

The Senate Education Committee voted 6-1 to advance a bill that would provide tax credits to insurance companies that contribute scholarship dollars to the state's non-public schools.

The bill's supporters, largely from the state's private school community, told the committee it would provide low-income South Dakotans more options in educating their children, while opponents from the public school sector said the bill was unconstitutional and could be the first step toward creating a voucher program in South Dakota.

If enacted, SB 159 would allow insurance companies to contribute up to $2 million total to a newly established non-profit agency that would disperse the funds to families with up to 150 percent of the income level used to determine free and reduced price school lunch. Students could receive up to roughly $2,300 from the fund to help them afford tuition at an accredited private or parochial school. And the insurance companies would receive a tax credit from the state for 80 percent of the funds they put in for scholarship dollars.

The bill's primary sponsor, Sen. Phyllis Heineman, R-Sioux Falls, said her measure would be a good solution for poor families who want an option outside the state's public school system. Heineman altered her bill based on a similar one that didn't gain traction in the Capitol last year. She said the new bill would be fiscally neutral to the state.

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Valerie Horacek, a liaison for Sioux Falls Catholic Schools, supported the bill and said she's had to notify parents that their children wouldn't be able to come back to school if they couldn't pay tuition. She said the situations are "gut-wrenching" and often bring tears from families.

"This is not about what school has the best education, this is about what school is best for each family," Horacek said.

Opponents from the public school sphere said the bill would draw attention and support from the move in the Legislature to put additional funds toward South Dakota's lowest-in-the-nation teacher pay.

Rob Monson, executive director of School Administrators of South Dakota, said the bill could be found unconstitutional. He said the state is required to fund public education, but shouldn't be required to subsidize private education, too.

"Our focus should be on fully supporting this system, not siphoning money into private systems," Monson said. "Let's call this what it really is, this is the beginning of a voucher program."

Senators in the committee said their votes of approval didn't mean they would guarantee support on the Senate floor, but they said the bill merited additional consideration. The bill now moves to the Senate floor.

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