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Children's Savings Accounts - Neighborhood Partnerships' RE:Conference 2014
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Transcript of Children's Savings Accounts - Neighborhood Partnerships' RE:Conference 2014
“Future Accounts”:a College and Training Savings Account
concept for Central Oregon
RE: ConferenceOctober 30, 2014
Vision: "Every child in Central Oregon has started a college/training savings account by the time they leave 3rd grade and has a variety of ways to grow this account over time."
Four Workgroups:1) Early Learning and Wellness2) Supporting Families3) Bridges (critical transition periods)4) Education/Training to Career
Better Together was originally formed to:
“Create a culture of higher education”
Eligible uses of Future Account funds include:
help pay for college credit courses while still in high school
help pay for apprenticeship or work experience while still in high school
help a student attend a 2 or 4-year college (i.e. pay for tuition, books, fees)
help a student pay for vocational/technical school (i.e. pay for tuition, tools, equipment)
Guiding Principles:
Designed to support "40-40-20"
Keep it simple, but not simplistic
Incentives and program activities are always properly aligned
This is a tool, not the solution
Should be available/offered to every student (not means-tested)
Promote ownership by the child/student
This is a long-term initiative
Key Program Design Elements:
An actual savings account that is opened by the student/parent (financial entity/"surrogate bank")
A separate matching account that is tied to this particular savings account (firewall in place)
Incentives for student to make regular deposits of $50-$200 annually and participate in targeted activities to earn $50 bonus match/year
Start with cohort in 3rd grade (~2,400 students) and support going forward
Partners provide resources and information on applying to college, financial aid, scholarships, etc.)
Budget Assumptions:
An investment period of roughly 10 years (3rd -12th grade)
The student contributes the maximum matched amount each year ($50, $100, $200)
The student earns the maximum bonus amount each year ($50)
Upon graduation, each student would have at least $2,650 in their Future Account (comprised of $1,050 in student contributions and $1,600 of community match)
Proposed Funding Sources/Resources:
Find Your Part • Help Students Excel • We're Better Together
Foundations
Private donors (individuals and businesses)
Financial institutions
State/Federal
Local school districts and schools
Service clubs
Students/households
New funding mechanisms (TBD)
Key Operational Partners/Timeline:
Mid Oregon Credit Union - financial entity
High Desert Education Service District - match administrator/disbursement
OSU-Cascades - evaluation
Looking to start pilot program with 8 ES next Spring
Rollout to all of Central Oregon for 2016-17 SY
Questions/Contact info:
Bruce Abernethy
Grantwriter, Bend-La Pine School District
541-355-1024
Anna Higgins
Coordinator of Student Success, Better Together
541-693-5773
State Children’s Savings Policy Overview
• 2004-2009: SEED Initiative drove CSA advocacy
• Incremental wins, but no break-throughs
State Policy Win
AR Authorized & funded pilot project with commitment to expand
TX Authorized (but didn’t fund) matched prepaid tuition program
KY, OK, HI, IL Enacted Study Commissions
OK, TX, CA, ND, HI “Planted a flag” by introducing legislation
• Challenges
Advocates needed to explain, show effectiveness AND build
political support
Coincided with recession: no interest in programs that cost money
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36
0 5 10 15 20 25 30 35 40
State Adoption of Children’s Saving Policy
Universally Available Incentive
Targeted Incentive for LMI Families
Incentive to Noncustodial Parents
Current Policy Landscape
On policy agendas in more than 20 states
Universal
Match3 states
Current Policy Landscape
Of the 36 states with universally available incentives for college
savings …
Tax Credit 3 states
Tax Deduction29 states