SC high court will directly take challenge to K-12 vouchers

COLUMBIA — The state Supreme Court will directly settle a challenge to South Carolina’s taxpayer-funded scholarships for K-12 private tuition.

An order Tuesday signed by four justices sets a hearing date of March 6.

“We grant the request,” they wrote in deciding to take the lawsuit directly, rather than let it wind its way through the lower courts first.

“In light of the urgent nature of this matter, the parties shall abide” by the schedule laid out in the order. The first filings in the case are due Jan. 1.

Under the law signed by Gov. Henry McMaster in May, $6,000 will be awarded to the parents of up to 5,000 students for the school year starting in August 2024. To be eligible for the first year of private school aid, students must be attending a public school in South Carolina now and qualify for Medicaid.

An expected lawsuit was filed by the South Carolina Education Association, state conference of the NAACP and half a dozen parents in late October. They argue the taxpayer-funded payments violate the state constitution’s ban against public funds directly benefiting a private school.

It took the states’ high court more than seven weeks to respond to their request. Republicans who pushed the law through have said they’re confident they crafted it to get around the constitution’s direct benefit prohibition.

Senate Majority Leader Shane Massey, a co-sponsor, said he’s glad justices are taking the case.

“It’s an important issue, but it’s also an issue we need a resolution on fairly quickly,” said the Edgefield Republican who led the subcommittee that advanced the legislation.

The timing, however, means the program will launch before justices even hear the case, much less settle the matter.

By law, the application period must open to parents no later than Jan. 30, and vouchers are awarded on a first-come, first-served basis to eligible students.

The date of the hearing falls one week before the application period closes. It also happens to be the week before the House passes its initial spending proposal for the fiscal year starting July 1.

The state Department of Education has requested $30 million in 2024-25 to pay for the 5,000 scholarships that could be designated before justices hear the arguments.

The agency has been in the process of reviewing bids from companies that want to set up and run the online portal system to be used by parents, participating schools and businesses.

On Monday, the agency picked ClassWallet of Hollywood, Florida, as the winner. The $4.2 million contract is set to start Dec. 23 and continue through June 30, 2027, according to an “intent to award” document posted in the state’s procurement website.

Justices’ schedule for filings and the hearing itself is a quicker turnaround than normal for a Supreme Court case, Massey said.

Still, he said, the timing creates uncertainty, not only for those overseeing the program but more importantly the children and families trying to plan for next school year.

“We’re going to have people applying for scholarships, and there will be some uncertainty as to whether the recipients will be able to use them,” Massey said, adding he hopes that doesn’t tamp down participation in the program’s opening year.

If the law stands, both the number of eligible students and the income cap will rise in future years. For next school year, eligibility ends once the income of a family of four tops $60,000.

In 2025-26, 10,000 students can participate, and their household income can be up to 300% of the federal poverty level, or $90,000 for a family of four.

Once fully phased in the following year, up to 15,000 students in a household earning 400% of the poverty level can participate. That’s currently $120,000 for a family of four but the cap will be higher in 2026-27 and beyond, since federal poverty guidelines are adjusted annually. If 15,000 students participate, that’s $90 million worth of vouchers.

Statewide, about 790,000 students attend K-12 public schools. On average, the state spends $8,100 per pupil this school year, though spending varies by district. The state spends the most in rural Allendale County, at $12,800 per student, and the least in Charleston County, at $6,200 per student, according to the state Revenue and Fiscal Affairs Office.