David Lesher on San Francisco's KGO-TV Explaining Kids' Savings Accounts Bill

Communications — Fri, 02 Mar 2007 03:47:00 -0500

New America in the News:

Mar. 1 - KGO - A new plan to give newborns a head start is getting mixed reviews. The idea is to give every baby born in California $500 dollars. It would be a nest egg they would have money out of taxpayers pockets today -- that would be a nest egg when those babies become young adults...

After families add money, at 18 the child would have to pay the state back $500 and use what's left tax free for college, a house, or a retirement account. The idea came from the New America Foundation, a non partisan think tank which found one Democrat and one Republican to introduce the bill.

David Lesher, New America Foundation: "I don't know how we can not afford to give people access to home ownership and college -- that they might not otherwise have..."

New mom Lisa Jenkins would rather see the state put to use the $500 now, rather than having little Sophie wait until she's 18 to see any benefits.

Lisa Jenkins, New mother: "There's going to be a need for more classrooms, more teachers, or overcrowding of what we already have."

But the New America Foundation says we have to give these little ones a chance.

David Lesher: "We're at a point where our middle class needs to grow. We have an income gap, with too many rich and too many poor -- and not enough in the middle class."

For the complete story, please visit the KGO-TV, San Francisco website.