SIOUX FALLS, S.D. (KELO AM) - After an hour-and-a-half of debate, the House Education Committee today rejected a bill that would have made public the donors to the South Dakota education tax credit program.
Wade Pogany with Associated School Boards says two million dollars worth of tax credits can be used as public dollars for private school scholarships.
Pogany says in the case of scholarship tax credits, these are tax obligations that can now be diverted from the general fund for private use. He says tax obligations are not donations.
But Representative Lee Qualm says everyone has the right to donate money to whoever they see fit.
Qualm says donors can be named if they want to. But he says there are a lot of people in philanthropy that don't like that, they don't want to be recognized. He thinks that the legislature has to give them the right to stay there.
Qualm was a co-sponsor of the bill last year that established the education tax credit program.
The tax credit program enables insurance companies to donate to private schools for tax credits.