Bank of North Dakota outlines ESA program challenges for 2026 school year

In a recent meeting of the North Dakota Senate Appropriations Committee focused on Education and Environment, significant discussions emerged regarding the implementation of a new educational program aimed at enhancing educational savings accounts (ESAs). The meeting, held on April 10, 2025, highlighted the complexities and challenges associated with launching this initiative in time for the 2026-2027 school year.

Key among the discussions was the fiscal note associated with the program, which is projected to cost approximately $5.1 million. This funding will be allocated between the Bank of North Dakota and the Department of Public Instruction (DPI). The urgency of the timeline was a central concern, as officials noted that the current schedule may not allow sufficient time for the necessary procurement processes and software implementation. Lisonbee Anderson, Chief Banking and Innovation Officer at the Bank of North Dakota, emphasized that the standard procurement timeline could extend up to 15 months, making it challenging to meet the proposed start date.

The committee also explored the need for expert consultation to ensure the program's successful rollout. Anderson indicated that while the Bank of North Dakota has experience in technology implementation, they lack specific expertise in educational savings accounts. This gap necessitates hiring a consultant to guide the process and ensure compliance with the program's requirements.

Additionally, the meeting addressed concerns about data collection, particularly regarding the desegregation of assessment results by family income levels. Adam Tesher, School Finance Officer at DPI, raised questions about the feasibility of collecting such data, suggesting that it may complicate the program's administration.

The discussions underscored the importance of careful planning and coordination among various state departments to ensure the program's success. As the committee moves forward, the focus will remain on addressing these logistical challenges while ensuring that the educational needs of North Dakota's students are met effectively. The next steps will involve further refinement of the program's details and continued collaboration between the involved agencies.