MITCHELL, SD (Mitchell Now) — Governor Larry Rhoden used a photo opportunity at St. Joseph’s Academy in Sioux Falls to announce a new push for the state to opt into the Partners in Education Scholarship program, which would allow taxpayers to receive a tax credit for donations they make to accredited public or private schools.
“My goal as governor is to support innovation, not to stand in the way. So we will continue to champion policies to expand freedom and to learn for our students,” Rhoden said.
Under the program, donations to participating schools or scholarship-granting organizations (SGOs) would generate a state tax credit. The existing program, established in 2016, provides credits to insurance companies that donate to SGOs, which in turn award scholarships to students at accredited non-public schools. SD Department of Labor+2EdChoice+2
Education Secretary Joe Graves acknowledged that broadening eligibility to include donations to public schools may intensify competition for students — which he views as a positive: “If we can have a more robust competitive system in education, that always improves things, so in any field of endeavor where there’s competition, the quality improves.”
The program’s overview indicates scholarship awards may reach up to 82.5 percent of the state’s per-student allocation and that student eligibility is linked to income thresholds. SD Partners in Education+1
This expansion signals a significant development in how South Dakota funds education and offers school-choice avenues for families across the state.