SIOUX FALLS, S.D. (KELO) – A panel of state lawmakers voted to stop a bill that would have provided funding for students to attend private or homeschools with public dollars.
After extensive testimony for and against implementing the proposed bill, representatives from the House Education Committee voted 9-6 to send the bill to the 41st day, effectively killing it.
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Representatives opposed to the bill were worried about diverting public funds to private institutions.
“We are already struggling to fund public education, this has to be our priority,” Republican Rep. Josephine Garcia said. “With a fiscal note of $64 million for FY2026, what programs will we cut to add this new funding program in?”
If House Bill 1020 passed, it would have created an educational savings account (ESA) with an initial amount of $4 million. The money would’ve been used for homeschooling materials or tuition to a private or microschool. Eligible students would have received about $3,000 each.
Former Gov. Kristi Noem had recommended funding for it, and new Gov. Larry Rhoden on Tuesday told a joint session of the South Dakota Legislature that he wanted it, too.
South Dakota Secretary of Education Joseph Graves supported the bill. During his testimony, he said South Dakotans who aren’t able to find alternative instruction if public schools don’t meet their needs, are in education deserts.
“This bill would give hope and promise and a shot at the American dream for students who are currently trapped in education deserts,” Graves said.
Republican Rep. Roger DeGroot said the bill would “set up a nightmare for the Department of Education.” DeGroot, a retired public school administrator, also criticized the use of over $4 million for this program instead of increasing the Department of Education’s budget to match inflation.
“This $4 million can go back into the general budget,” he said. “That can bring back public tv, that can bring back some maintenance and repair for our universities.”
Among opponent testimony were multiple public school superintendents, including Yankton Superintendent Wayne Kindle. He asserted that parents currently do have choices for their kids’ education, but said that “parents who choose to have a private education, should pay for those costs.”
“Public money is for public education,” Kindle said.
The Legislature in 2016 established a scholarship program called Partners In Education that students can use for private schools. It is funded by insurance companies, who pay into the program and in turn receive credits that reduce or eliminate the state taxes they owe.
There is still the possibility for House Bill 1020 to be revived during the current legislative session on the House floor or through other legislative rules and procedures.
Here’s how the representatives voted:
Yeas- (9)– Arlint, DeGroot, Halverson, Heermann, Jordan, Stevens, Uhre-Balk, Greenfield, Jensen. Nays (6) – Baxter, Garcia, Ismay, Manhart, Rice, Schwans.
