Last updated on 2016.02.10
The South Dakota Legislature holds deep respect for the committee process... until it gets a chance to disrespect public education.
While the South Dakota House yesterday insisted on respecting the committee process and refused to resurrect House Bill 1223, the Common Core ban, from its committee failure, the South Dakota Senate said Committee, Schmommittee! dragged Senate Bill 189 back from its committee failure and passed it 23–12.
HB 1223 might at least have improved public education by getting Common Core off teachers' backs. SB 189 harms public education and the state budget by diverting tax dollars to private schools. The convoluted mechanics of the bill allow the state to say it's not writing a check to any religious school (which would be a problem): under SB 189, insurance companies give money to non-profits; those non-profits give money to lower-income families; those families give their money to private schools; the state says to the insurers, "How nice!" and knocks up to 90% of the insurers' private school scholarship contributions off their premium and annuity tax.
As educator/blogger Michael Larson says, SB 189 is a voucher sneak attack. He notes that SB 189 hurts public school districts by removing kids from their rosters money from their state funding without proportionately reducing those public schools' costs... which of course is what Governor Dennis Daugaard*, the GOP majority in Pierre, and the Christian crusaders who testified for SB 189 want to see happen.
SB 189 as several additional problems:
- SB 189 starts with scholarships for families who make 150% or less of the income threshold for free or reduced lunch the year before they enter the program. But it allows families to keep claiming that credit if their income exceeds that threshold. Consider: my family could easily have qualified for such a credit based on our low grad school/part-time income last year. Now that my wife has full-time professional employment, and if I gain similar full-time employment in the coming school year, we'll be far above that 150% threshold. We'll have no need of financial assistance to send our child to private school, but SB 189 would require the state to keep handing out that subsidy for three years.
- SB 189 caps creditable scholarships at four million dollars. "However," reads SB 189, "if in any fiscal year the total amount of tax credits claimed is equal to or greater than ninety percent of the maximum amount of tax credits allowed for that fiscal year, the maximum amount allowed for the following fiscal year shall increase by twenty-five percent." Wow! Pierre never increases school funding by 25% just because the schools claim more expenses. If we applied SB 189's funding mechanism to determining the per-student allocation, public schools could spend just 95% of the per-student allocation and trigger a 25% for the coming year. SB 189 is giving private schools a funding advantage that public schools never get.
- If insurance companies and the private schools play their cards right, that 25% growth rate would lead to SB 189 handing out $133 million in its first ten years and $1.24 billion in its next ten years.
- The insurance tax is projected to put $83.4 million in state coffers in FY2016. Those receipts have grown 5% over the last two years. Extrapolate that growth rate, and the insurance tax alone could support SB 189's private school subsidy's explosive through FY2034—seventeen years to wreak havoc on public school finance and the state budget.
If you believe in strong public schools, you vote Senate Bill 189 down. If you believe in separation of church an state, you vote this sneaky voucher plan down. If you believe in a sound state budget, you vote this plan down.
*Update 16:24 CST: To be clear, the Daugaard Administration did not testify in favor of SB 189. Other actions by the Daugaard Administration (Exhibit #1: 2012's HB 1234; Exhibit #2, ongoing neglect of K-12 funding...) demonstrate a lack of respect for public education, but last week, the Governor sent the Department of Education and the Department of Labor and Regulation to testify against SB 189. The proper read of that testimony is less likely a desire to defend public education and more likely a desire to oppose blasting a four-million-dollar hole in the budget.