Noem renews push for education savings accounts; sponsors identified

Governor Kristi Noem used her State of the State to spotlight education savings accounts as a priority for the 2024 legislative session, saying the program would “support all of our South Dakota students” and “not impact any of the funding that goes to our great public schools.”

Noem said the ESA bill was introduced “in conjunction with” Representative Odenbach and Senator Jim Melhoff. “These education savings accounts will support all of our South Dakota students. We will provide families greater opportunities to choose the best fit for their children's education,” she said.

Why it matters: ESAs typically redirect public education funding to accounts that families can use for private school tuition, tutoring, or other approved education expenses. Noem’s statement that ESAs would not reduce public school funding was disputed by incoming House Minority Leader Erin Healy, who told SDPB after the speech that “any money that is utilized is going to take away from the general fund” and that her caucus will not support ESAs this year.

Legislative posture: Senate Majority Leader Jim Melhoff said he expects to work on ESA language with Representative Odenbach and the caucus to seek acceptable bill text. Melhoff said the proposal has already changed since its first draft and that the goal is to expand parental agency in education.

Details available from the address and post‑speech interviews: Noem said ESAs will be created in coordination with legislative sponsors; she did not provide bill text, a dollar amount per account, an eligibility formula or a timeline for implementation. Representative Odenbach and Senator Melhoff were identified as sponsors; specific bill number and fiscal‑note details were not specified in the joint session.

Conflicting claims and next steps: Noem’s assurance that the program would not affect public school funding contrasts with the minority leader’s prediction that ESAs will draw money from the general fund. Lawmakers said they will negotiate language and fiscal impacts in committee hearings scheduled during the legislative session.