Thread: California newborns would get state-seeded college savings accounts under bill

California newborns would get state-seeded college savings accounts under bill

March 27, 2017 4:12 PM



Every child born in California would get a state-seeded college savings account unless their families opt out, under recently amended legislation by Assemblyman Adrin Nazarian, D-Los Angeles.

The Children’s Savings Account Program created by Assembly Bill 34 aims to increase the number of young people who attend college. Starting Jan. 1, 2018, all of the roughly 500,000 children born in California each year would have a 529 tuition savings account opened in their name, with an initial contribution from the state. No amount has been set in the bill.

“Wealth inequality is closing the door on middle and lower-income advancement nationwide,” Nazarian said in a statement. “By creating an opt-out child savings account, we can jump-start our children’s financial independence.”

California already sponsors a 529 college savings program, Scholarshare, but people must enroll in it. According to Nazarian’s office, parents most likely to enroll their children in the plan have more education and financial wherewithal than parents who do not.

Amendments to AB 34 late last week flesh out what had been spot legislation.

Under the proposal, the state would give more money to the children of families with adjusted gross income of less than $75,000. The state also would match the contributions of those families.

Philanthropic foundations and other groups also could give to the accounts.

Maine, Nevada and Rhode Island already have opt-in college savings programs, with initial deposits of varying amounts. Illinois and Oregon are working to create their own programs. Last year, California created a state-managed retirement program for workers without employer-sponsored plans. It is scheduled to begin enrolling workers in 2018.

Nazarian’s bill is scheduled to be heard April 25 in the Assembly Higher Education Committee.

http://www.sacbee.com/news/politics-...141118218.html

Apparently they don't need Federal money they are doing well on their own. Use it to pay down the National Debt.

All the more reason to pull their federal funding over sanctuary cities.

California does not have money to fix their dams, roads and bridges...but the have money for this?

Pull their Federal Funding...and NO Federal Tax Dollars for their incompetence, mismanagement of taxpayers dollars, and refusal to fix the dams themselves!

Same goes for ALL States who do not fix their infrastructure that leads to collapse. This should not be under FEMA, no Federal Tax Dollars!

The Flint Water disaster is the same thing. Incompetence and mismanagement of funds. Why are our tax dollars being used to bail them out? This sets the precedence for ALL States to do this...then have their hands out for Uncle Sam!

The socialists and communists in cahoots with the globalists and drug cartels have done much to harm the beautiful state of California.

"SAD!"

This is like the grants that every state gives low income college students to help them pay for college.
They are opening the accounts when the student is a baby to encourage the parents and grandparents to contribute to the account each year until the student is old enough for college.
If the state sets up the account many relatives will contribute to it for birthdays, Christmas, etc.

Not sure how, but in Texas, many illegal children and children of illegals are attending college.

Somehow, I don't think they are paying for it from any 'savings' plan started by the government - just outright misappropriation of taxpayer dollars.

Texas was first to pass a state ‘Dream Act' (In 2001)

Texas lawmakers passed (almost unanimously) and Gov. Rick Perry signed into law a measure allowing certain immigrants brought illegally to the United States as children to attend state colleges and universities at the tuition rates charged to legal in-state residents. . .

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.Aug 8, 2012

SEC.gov | An Introduction to 529 Plans

https://www.sec.gov/reportspubs/investor-publications/investorpubsintro529htm.html

Originally Posted by JohnDoe2

This is like the grants that every state gives low income college students to help them pay for college.
They are opening the accounts when the student is a baby to encourage the parents and grandparents to contribute to the account each year until the student is old enough for college.
If the state sets up the account many relatives will contribute to it for birthdays, Christmas, etc.

I wouldn't say it's like college grants other states offer low income family members for college, I'd say it is in addition to the grants.

Every year, thousands of California students receive excellent financial support from the state which allows them to pursue higher education at publicly and privately funded postsecondary institutions in the state. California residents who are planning on attending accredited colleges and universities within California can take advantage of several excellent grant programs. A number of the state’s key grant programs offer both merit-based and need-based aid, and can be utilized by students of all socioeconomic backgrounds who have earned good grade point averages (GPAs) throughout their high school years. State-sponsored grants reduce the tuition burden of many California students by thousands of dollars per year.

http://www.collegegrants.org/califor...ge-grants.html