ACR 168, as introduced, Medina. 529 College Savings Day.
This measure would designate May 29, 2016, as 529 College Savings Day, to raise awareness about the importance of saving for college with the help of 529 college savings plans.
Fiscal committee: no.
P1 1WHEREAS, 529 college savings plans are important tools for
2California families that want to save for their children’s college
3education, offering a diverse range of investment options,
4tax-deferred growth, and withdrawals free of state and federal
5taxes when those withdrawals are used for qualified higher
6education expenses such as tuition, fees, books, certain room and
7board costs, and required supplies; and
8WHEREAS, While the first college savings plans were
9developed by states in 1988 as innovative programs designed to
10help families and students save for higher education expenses, it
11was not until the enactment of Section 529 of the Internal Revenue
12Code by Congress in 1996 that college savings plans began to
13rapidly gain popularity across the country; and
14WHEREAS, Today, 49 states and the District of Columbia offer
15529 college savings plans, over 12.5 million 529 accounts have
P2 1been opened, more than $253 billion have been saved for future
2higher education expenses, and more than one million students
3nationwide have withdrawn funds from 529 accounts to help pay
4higher education expenses; and
5WHEREAS, The ScholarShare College Savings Plan, which
6has served as California’s official state-sponsored 529 college
7savings plan since its launch in 1999, has grown to more than $6.37
8billion in total plan assets held in over 270,000 ScholarShare
9accounts; and
10WHEREAS, The ScholarShare College Savings Plan has helped
11students meet their higher education goals with over $333 million
12withdrawn annually for qualified higher education expenses at
13over 958 colleges and universities; and
14WHEREAS, In California, from 2005-06 to 2014-15, tuition
15rates at the University of California, the California State University,
16and the California Community Colleges increased 114 percent,
17117 percent, and 130 percent, respectively, and over the past 40
18years, tuition rates have consistently increased at two to three times
19the rate of inflation every year; and
20WHEREAS, Federal financial aid awards have shifted away
21from student grants to providing access to guaranteed student loans
22so that, today, nearly 60 percent of all federal financial aid is in
23the form of loans, substantially increasing the number of college
24graduates who will face the burden of repaying significant student
25loan debt upon entering the workforce; and
26WHEREAS, According to the Federal Reserve Bank of New
27York, student loan debt has now reached $1.3 trillion nationally,
28which is more than triple the amount owed in 2005; and
29WHEREAS, When Americans are burdened with student loan
30debt, they are not able to buy homes, cars, and other products that
31boost our economy; and
32WHEREAS, College savings plans, such as the ScholarShare
33College Savings Plan, help families to limit or eliminate future
34student loan debt by helping them save for future higher education
35expenses; and
36WHEREAS, The contributions families make today pay off in
37the form of an increased earning potential for their children in the
38future, with a college graduate earning an average of $1 million
39more than a high school graduate during his or her career according
40to the United States Census Bureau; and
P3 1WHEREAS, May 29th is recognized nationally as 529 College
2Savings Day to help raise awareness across the country of the
3importance of saving for college with the help of 529 college
4savings plans; now, therefore, be it
5Resolved by the Assembly of the State of California, the Senate
6thereof concurring, That the Legislature of the State of California
7hereby proclaims May 29, 2016, as 529 College Savings Day; and
8be it further
9Resolved, That the Chief Clerk of the Assembly transmit copies
10of this resolution to the author for appropriate distribution.
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