HB0125 | Intergenerational Poverty Solution

Description

General Description:

This bill creates the Education Savings Incentive Program.

Highlighted Provisions:

This bill creates the Education Savings Incentive Program (the program), including: providing a process for an individual identified by the Department of Workforce Services as experiencing intergenerational poverty to receive a state match of deposits into certain 529 savings accounts up to $300 a year. Must be working, and qualify as Intergeneration Poverty & the Earned Income Credit.

Bill Details

Bill Number:

HB0125

Year:

2021

Status:

House/ filed

Last Action:

Mar 05, 2021

Fiscal Note

Fiscal Note Amount:

$1,755,400

This bill appropriates in fiscal year 2022: to Education Fund Restricted -- Education Savings Incentive Restricted Account, as an ongoing appropriation: from Education Fund, $870,800. to Education Fund Restricted -- Education Savings Incentive Restricted Account, as a one-time appropriation: from Education Fund, $6,900. to Department of Workforce Services -- Administration, as an ongoing appropriation: from Education Fund Restricted -- Education Savings Incentive Restricted Account, $870,800. to Department of Workforce Services -- Operations and Policy, as a one-time appropriation: from Education Fund Restricted -- Education Savings Incentive Restricted Account, $6,900.

View Fiscal Note

Utah PTA Response

Utah PTA Position

Oppose w/ Comment

While Utah PTA supports Intergenerational Poverty solutions that promote higher education and success in education, Utah PTA opposes this bill because we do not believe this bill is an effective way to get those out of Intergeneration Poverty by using education dollars to support matching funds in a 529 account. 529 plans are poorly designed to help low income families. Only 0.3 percent of households in the bottom half of the income distribution (under $56,516 in 2015) have 529 accounts.

Utah PTA Resolution:

EDU 2010-2 | Education Funding (retired)

Impact on Children:

This bill is like a voucher using education dollars to pay for a program to match 529 funds to help those in Intergenerational Poverty.

Commission:

Family Life

Utah PTA Public Policy Program

National PTA and Utah PTA Resolutions:

That Utah PTA oppose vouchers, tax credits and deductions and other similar funding
sources for public and private preschool, elementary and secondary school tuition and
other education-related expenses for students.

Utah PTA Legislative Priorities:

Support education legislation which guarantees that public funds intended for the funding of the public education system not be allocated for private interests including vouchers, tax credits, or other means.