Governor to decide on state-subsidized scholarships

In a legislative session dominated by discussion about increasing funding for the state's public schools, the House of Representatives on Tuesday supported giving private and parochial schools a break.

The chamber approved a bill that would create state-subsidized scholarships for low-income non-public school students on a 45-23 vote with two lawmakers excused.

The measure now moves to Gov. Dennis Daugaard's desk for his consideration. Senators approved the measure on a 24-11 vote last month.

Majority Leader Brian Gosch, R-Rapid City, smoked the bill out of the House Committee on Appropriations Monday after the panel shelved it 5-4 earlier that day. The bill's supporters say it will be revenue neutral or could save the state money but public school lobbyists say it could siphon funds from their new revenue stream.

“What we’re asking for is a small small slice to support the kids and the families that choose to go to an alternative school,” Rep. Kristin Conzet, R-Rapid City, said. "It's a good solution at this point."

Rep. Lee Schoenbeck, R-Watertown, said now that the state plans to spend tens of millions of dollars more a year on public school teacher pay, lawmakers should support legislation that provides for private schools, too.

“You should appreciate that we should all be in this together,” Schoenbeck said. “I’d ask you to support educating all children in South Dakota.”

Opponents on the floor said the measure could be unconstitutional and would benefit special interests rather than South Dakota citizens. They also said it could create a "black mark" on the progress made in public education funding.

“Special interests, that’s what this bill is about," Rep. David Anderson, R-Hudson, said on the floor. "Do not allow yourself to be misled, take a step as a common citizen, take a step for the common citizen and against special interests."

Private schools aim for state subsidized scholarships

Rep. Karen Soli, D-Sioux Falls, said the bill would divert state tax funds, which would violate the state's constitution. She said lawmakers should continue to focus on funding South Dakota public schools.

"Let's not put an unconstitutional black mark on what promises to be a great legislative year for education here in South Dakota," Soli said.

Gosch's bill, SB 159, would allow insurance companies to contribute up to $2 million total to a nonprofit organization created by the state. The organization would then disburse the funds to families with incomes up to 150 percent of the amount used to qualify for free and reduced price school lunch.

Students could receive an average of $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 new fund could create 1,036 scholarships for students who are currently in private school, who would switch out of a public school district or may move into the state. Of those, an estimated 761 scholarships would go to students switching from a public school to private or parochial school or to students who've recently moved to South Dakota.

Bill supporters, largely from the state’s private school community, have said the measure gives low-income families another option in their children’s education. While opponents have said the bill is unconstitutional and could be the first step toward creating a voucher program in South Dakota.

Daugaard has said he hasn't made up his mind about the school choice bill.

Follow Dana Ferguson on Twitter @bydanaferguson