Senate Education committee kills Gov. Noem’s Stronger Families Scholarships bill

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The Senate Education committee voted 4-2-1 Tuesday morning to kill Gov. Kristi Noem’s Senate Bill 100.

SB 100 would’ve created a $15 million scholarship fund through the Department of Education spanning three years for children in foster care to receive scholarships up to $4,000 for a variety of K-12 expenses.

Eligible scholarship expenses included tuition and fees to private schools, tutoring or teaching services, purchases of curriculum and instructional materials, tuition and fees for online learning, fees for exams and tests, technology purposes and transportation to and from public school if they open-enroll, or if that district doesn’t provide transportation for the student.

Governor Kristi Noem gives the State of the State address on Tuesday, January 10, 2023, at the South Dakota State Capitol in Pierre.
Governor Kristi Noem gives the State of the State address on Tuesday, January 10, 2023, at the South Dakota State Capitol in Pierre.

Sens. Sydney Davis (R-Burbank), Kyle Schoenfish (R-Scotland), Steve Kolbeck (R-Brandon) and Tom Pischke (R-Dell Rapids) voted to kill it, while Sens. Jessica Castleberry (R-Rapid City) and Shawn Bordeaux (D-Mission) voted to save it. Sen. Tim Reed (R-Brookings) was excused from the vote.

The prime sponsor of the bill, Sen. Al Novstrup (R-Aberdeen), said if any money is leftover from the $15 million over a three-year pilot program, it will revert into the general fund. Other proponents said it would be up to the Legislature in three years to codify the scholarship fund for years to come after the pilot period is over.

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Proponents of SB 100 included members of Noem’s administration, Department of Education Secretary Joe Graves, lobbyists with South Dakota Partners in Education (SDPIE), Yes Every Kid, Lutheran Social Services, Americans for Prosperity, two foster parents and a director of a foster program in Pierre.

The proponents spoke about the need for school choice, the importance of additional assistance for this population of students, closing gaps for foster children, and the need for resources for families with foster children.

There was also discussion that the more than 1,000 foster children in the state are underrepresented in the current SDPIE program, a tax credit program used to fund in-state K-12 private school scholarships. Noem signed a bill one year ago increasing the amount of that scholarship to $3.5 million.

Proponents of the SDPIE program said in hearings last year that it offers more "school choice" to South Dakota families and makes private school more accessible to families who otherwise couldn't afford it, but opponents have said for years the program diverts money from state coffers for the scholarships and have asked for more transparency on the program.

More:Noem signs bill upping amount tax credit program can use for private school scholarships

Opponents of SB 100 included lobbyists with the large school group, Associated School Boards of South Dakota, School Administrators of South Dakota, Sioux Falls School District, South Dakota United School Association and South Dakota Education Association.

The opponents largely argued Tuesday they want the best outcomes for foster children, but this bill isn’t the route to do it. They argued it’s best for foster children to stay in their school of origin, that the bill doesn’t have enough details on how to implement what is essentially a new government program, that there’s no accountability or oversight of private schools and homeschools, and this type of funding should route through the Department of Social Services, not the DOE.

Dianna Miller, with the large school group, argued there’s no need to create another education program when many education programs are underfunded, she said.

Wade Pogany, with ASBSD, even went so far as to call the legislation a violation of the state’s constitution under Section 8, Article 16, which states that “no appropriation of lands, money or other property or credits to aid any sectarian school shall ever be made by the state.”

During committee question time, Davis asked Graves his opinion on if SB 100 essentially creates a voucher program, to which he replied it did, depending on one’s definition of that type of program.

The word “voucher” is in the bill under Section 2.

This article originally appeared on Sioux Falls Argus Leader: Noem's Stronger Families Scholarships bill killed by Senate committee