Committee hears House Bill 1540 to create education savings accounts; supporters cite choice, critics warn of cost and accountability

The House Education Committee on Tuesday heard testimony on House Bill 1540, a proposal to create education savings accounts (ESAs) that would direct most state dollars for students not attending public schools into an account for families to use on specified educational expenses.

Representative Ben Koppelman, the bill sponsor, told the committee the measure would deposit 80% of a participating student’s per-pupil payment into an ESA and leave 20% with the student’s resident public school so the district can cover fixed building and staffing costs. “This bill seeks to create a an education savings account for anyone that is not attending a public school,” Koppelman said. He said the funds would be paid from the general fund through the Bank of North Dakota and ‘‘not a dime of this money comes from any educational dollars intended for k 12 public schools.’’

Supporters said the program would broaden choices for families, help rural communities and let nonpublic and homeschooled students buy services they otherwise could not afford. Katrin Wigfahl of American Experiment and other backers cited national analyses of choice programs and told the committee that, at low take-up rates, the program’s biennial cost could be far lower than some fiscal notes project — and that, in their view, the bill could increase funding that ultimately remains available to public districts. Wigfahl noted a sample estimate: “If 2% of eligible students participated in North Dakota’s ESA program in year 1, the cost over the biennium would be $45,800,000,” and urged…