College Savings

Although the State of California currently offers its residents a 529 college savings plan through the ScholarShare program, the investment vehicle lacks incentives that encourage low- and middle-income individuals to participate in the program. Other U.S. states offer a variety of attractive incentives, such as matching contributions and state tax deductions. Californians are ready to adopt a stronger and more incentive oriented 529 plan that will encourage families to build savings for their children's college education. Postsecondary educational attainment increases median income, tax revenues, civic engagement and mental health. Similarly, it lowers unemployment rates, poverty rates, dependency on government programs and crime. Strengthening the ScholarShare program is the steppingstone for an educated and a financially sound California.

For the full text of the issue brief, please see the PDF attached below.