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South Dakota Gov’s $4M School Choice Plan Faces Backlash

Supporters of the plan say it would allow the state to start educational reform that鈥檚 gained momentum nationwide.

Gov. Kristi Noem delivers the fiscal year 2026 budget address at the Capitol in Pierre on Dec. 3, 2024. Seated behind her, from left, are House Speaker nominee Jon Hansen and Lt. Gov. Larry Rhoden. (Makenzie Huber/South Dakota Searchlight)

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PIERRE 鈥 A $4 million proposal by South Dakota Republican Gov. Kristi Noem to help students enroll in private school and other forms of alternative instruction would undermine public education by diverting state money to unaccountable entities, opponents say.

Supporters of the plan say it would allow the state to start educational reform that鈥檚 gained momentum nationwide while lowering education costs, forcing public education to innovate and offering South Dakota students tailored education to best meet their learning needs.

Noem pitched the creation of education savings accounts, or ESAs, to lawmakers at her annual Tuesday in Pierre as a way to continue to 鈥減rioritize education鈥 without cutting public education funds.

鈥淕ood education starts in the home,鈥 Noem said. 鈥淎nd parents should have the tools to choose what educational path is best for their kids.鈥

The program would cover about $3,000 per student annually to pay for a portion of private school tuition or curriculum for alternative education, Noem said. She hopes to expand the program eventually, but she might not be around to act on that plan. President-elect Donald Trump has as his nominee to lead the federal Department of Homeland Security, which means she could resign as governor as soon as late January, elevating Lt. Gov. Larry Rhoden to serve the rest of her term.

The program would be for 鈥渇amilies who meet eligibility requirements,鈥 according to , and Noem鈥檚 spokesman said the requirements will include being low-income. Sixteen other states already allow families to use .

The proposal comes as South Dakota sees one of the highest rises in alternative instruction in the nation. Across the state, alternatively enrolled students account for about 6.5% of the school-age population, based on public, non-public and alternative enrollment data from the state Department of Education. Alternative instruction includes homeschooling and private schools that are unaccredited or accredited by an entity other than the state, such as online, hybrid and microschools.

Lawmakers and education lobbyists in Pierre are eager to learn the details about Noem鈥檚 proposed legislation 鈥 especially how the state will ensure oversight and accountability, how students are chosen for the program and how it鈥檒l fit into the state鈥檚 ongoing expenses.

鈥淲e have homework to do,鈥 said incoming Senate President Pro Tempore Chris Karr, R-Sioux Falls, a former member of the legislative budgeting committee who supports the school choice movement. 鈥淲e have to go look at this and figure out how to implement this responsibly.鈥

Sandra Waltman, director of public affairs for the South Dakota Education Association, said any entity that accepts public funding should be held to the same standards as public education, such as testing requirements and anti-discrimination policies. Alternative instruction students are currently not required to take standardized tests or present a portfolio to demonstrate educational progress. Private schools aren鈥檛 obligated to serve all students, so they can deny admission and educational services, Waltman added.

鈥淲hen you鈥檙e taking those precious funds and diverting them from public schools, you鈥檙e undermining what public schools can do for students,鈥 Waltman said. 鈥淭here鈥檚 no assurance the money they鈥檙e investing in education is actually making a difference.鈥

Noem didn鈥檛 propose cutting public education to fund the program, but proposed a state funding increase to public education of 1.25%. The inflation rate this year is 3.2%, according to the .

Lower-than-expected sales tax collections primarily drive the leaner $7.29 billion budget Noem , which also includes cuts to some state departments and programs.

That signals to Rob Monson, executive director of School Administrators of South Dakota, that lawmakers will challenge the feasibility of ESAs.

鈥淪ome legislators will look at public education serving over 80% of students in the state and think, 鈥業f we have extra money, maybe we should obligate that to a program we鈥檙e already obligated to fund instead of funding a new program with ongoing dollars,鈥欌 Monson said.

Efforts to failed twice in the Legislature in recent years, largely due to questions about financial feasibility, said Brookings Republican Rep. Mellissa Heermann, a member of the House Education Committee.

South Dakota must be intentional with the 鈥渟mall pot鈥 of tax revenue it has to work with, Heermann said. She added that there are already school programs in place to help address students鈥 mental health, behavioral and learning needs.

鈥淚 don鈥檛 know that vouchers would be as impactful as other programs,鈥 Heermann said. 鈥淭he timing doesn鈥檛 feel right to me to embark on something like this when we鈥檙e already trying to reduce costs as much as possible.鈥

Incoming House Majority Leader Scott Odenbach, R-Spearfish, said the proposal focuses on educating students, rather than supporting a public education system that鈥檚 weighed down by overhead costs and top-heavy administrative costs. An ESA program could force local districts to decentralize, adapt and focus more on students鈥 education, he said.

鈥淣o entity evolves until it鈥檚 forced,鈥 Odenbach said.

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact Editor Seth Tupper for questions: [email protected]. Follow South Dakota Searchlight on and .

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