South Dakota 2025 Regular Session

South Dakota House Bill HB1020

Introduced
1/14/25  

Caption

Establish education savings accounts.

Impact

The implementation of HB1020 is expected to significantly affect state education laws by allowing the reallocation of public education funds directly to parents through ESAs. This could potentially shift funding away from traditional public school districts, which may face financial implications if a substantial number of students opt for these alternative educational settings. Additionally, the bill mandates the South Dakota Department of Education to conduct random compliance audits to prevent fraud, ensuring transparency and accountability in the use of these funds, while any unspent money will revert to the state treasury at the fiscal year-end.

Summary

House Bill 1020 introduces education savings accounts (ESAs) in South Dakota, aimed at providing parents with a mechanism to fund their children's education outside of traditional public school settings. Under this bill, eligible students can use funds from these accounts for tuition, educational materials, and services from accredited nonpublic schools, microschools, and approved virtual coursework providers. The initiative seeks to enhance parental choice in education and promote alternative schooling options, empowering families with more control over their children's educational pathways.

Contention

Contention surrounding HB1020 includes concerns over the possible erosion of public school funding and the implications for educational equity. Critics argue that providing ESAs may lead to financial strain on public schools as children leave for potentially less regulated alternative options. Furthermore, there are apprehensions that the lack of stringent oversight for the schools receiving ESA funds could lead to disparities in educational quality and access. Proponents of the bill maintain that it fosters innovation, competition, and individual choice in education, arguing that parents should have the freedom to select the best educational environment for their children regardless of the traditional public system.

Companion Bills

No companion bills found.

Previously Filed As

SD HB1250

Provide for the creation and use of South Dakota educational empowerment accounts.

SD SB82

Establish the stronger families scholarship program for children in foster care, to make an appropriation therefor, and to declare an emergency.

SD SB100

Establish the stronger families scholarship program for children in foster care, to make an appropriation therefor, and to declare an emergency.

SD HB1004

Update a reference to the Internal Revenue Code for purposes of higher education savings plans.

SD SB94

Amend provisions pertaining to the partners in education tax credit program.

SD HB1003

Update a reference to the Internal Revenue Code for purposes of higher education savings plans.

SD HB1099

Establish educational standards for the expanded practice of optometry.

SD HB1233

Expand the provision of online education through the South Dakota Virtual School.

SD HCR6001

To recommend the Executive Board establish a task force to study a potential optional educational path.

SD HB1253

Permit nonaccredited schools to participate in the partners in education tax credit program.

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