The South Dakota Senate convened on February 14, 2025, for Day 21 of the legislative session, where a significant focus was placed on Senate Bill 190, aimed at providing school choice through an education tax credit. The bill had its second reading and was up for final consideration.

Senator Carley, the bill's sponsor, emphasized that Senate Bill 190 is not a property tax reduction measure but rather a means to enhance educational choices for families. He explained that the bill allows property owners to receive tax credits for educational expenses incurred for children attending non-public or alternative schools. This initiative is designed to redirect a portion of the property taxes that typically fund public education, specifically targeting the 60% of property tax revenue allocated to schools.

Carley outlined the mechanics of the bill, stating that parents would pay tuition or educational expenses upfront and later receive a corresponding reduction in their property tax bill. He highlighted that this approach does not involve direct government funding or vouchers, aiming instead to utilize existing property tax contributions to facilitate educational choice.

However, the bill faced opposition during the discussions. Senator Shane Fish raised concerns regarding the potential financial impact on local school districts, citing estimates that the tax credit could cost between $33 million to $126 million. He pointed out that the bill allows property owners to fund educational expenses for students outside their local school district, which could complicate budgeting for schools.

Senator Nelson echoed concerns about the bill's implications for public education funding, arguing that it could divert essential resources away from local schools. He shared sentiments from constituents worried about the potential negative effects on public education.

Senator Jensen also expressed skepticism, questioning the practicality of the bill and its ability to effectively support families seeking alternative education options. He noted the complexities involved in the proposed system and the challenges it might pose for property owners and renters alike.

In closing remarks, Senator Carley reiterated the need for educational choice and urged his colleagues to support the bill, framing it as a necessary response to constituents' demands for more schooling options.

Ultimately, the Senate voted on Senate Bill 190, resulting in a defeat with 11 votes in favor and 24 against. The president of the Senate declared the bill lost, marking a significant moment in the ongoing discussions surrounding education funding and school choice in South Dakota.