At a meeting of the Appropriations - Education and Environment Division, members voted 3-2 to recommend “do not pass” on Bill 1540, a school-choice proposal amended to add a means test and to designate the Bank of North Dakota as administrator.

The panel approved an amendment that largely reverted the measure to language that came from the Senate Education Policy Committee, with a few changes to clarify the Bank of North Dakota’s role, to define eligible students by a means test, and to identify a program manager (vendor) for the marketplace. Senator Jay Scheible, sponsor of the amendment, said the changes were intended to keep the policy committee’s intent while addressing implementation details.

“What I'm proposing is that we go back to what came from the Senate policy committee with a few minor changes,” said Senator Jay Scheible, explaining the amendment and singling out three changes: naming the Bank of North Dakota as administrator, adding the means test under the eligible‑student definition, and specifying the program manager as the vendor that will run the marketplace. Scheible said the amendment also reduced the bill’s appropriation.

Scheible described the means test in the amendment as targeting families with household income “less than 400% of federal poverty levels.” He also said the amended appropriation was lowered to $21,700,000 for the second year of the biennium, and that roughly $18,000,000 of that amount would cover student deposits while the remainder would fund one year of implementation costs. Scheible said startup costs were initially estimated at about $5.7 million and ongoing costs about $3.1 million per year going forward.

Senator Beth Shively moved a recommendation of “do not pass,” saying she had multiple concerns with the bill’s design and implementation. “This is labeled as school choice for parents and that, but I see a lot of problems with this,” Shively said, citing accountability, the transfer of duties from the Department of Public Instruction to the bank, possible limits on true choice if schools can reject applicants, and limited opportunities for rural students.

The committee first moved and approved the Scheible amendment (version 04/2010) by voice roll call; the chair announced the amendment passed unanimously, 5-0. The committee then considered Shively’s motion recommending the full committee not pass the amended bill; that motion carried 3-2 on a roll call. The recorded votes on the committee recommendation were: Chairman Sorvaugh — Aye; Senator Connolly — No; Senator Thomas — Aye; Senator Scheible — Aye; Senator Meyer — No.

Senator Scheible will carry the bill to the full committee. Chairman Sorvaugh said the bill is scheduled before the full Appropriations Committee at 9:30 the following morning. The division adjourned after completing its business.

Votes at a glance
• Amendment (Scheible, version 04/2010) — Moved by Senator Jay Scheible; second not specified. Committee voice/roll call announced as 5-0 in favor (aye 5, no 0). Outcome: approved and amendment adopted.
• Committee recommendation on Bill 1540 — Motion: Do not pass (moved by Senator Beth Shively; second not specified). Roll call: Aye 3, No 2. Outcome: committee recommends do not pass; Senator Scheible will carry to full committee.

Background/context
The amendment returned the bill to language the sponsor said came from Senate Education Policy with a few clarifications about administration and eligibility; the principal policy change discussed at the division was insertion of a means test limiting eligibility to households under 400% of federal poverty guidelines. Committee members noted remaining questions about logistics and accountability, and at least one member said she planned to keep the bill alive in conference committee despite supporting the committee’s negative recommendation.