BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | ACR 168|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: ACR 168
Author: Medina (D), et al.
Amended: 5/9/16 in Assembly
Vote: 21
ASSEMBLY FLOOR: Read and adopted, 5/9/16
SUBJECT: 529 College Savings Day
SOURCE: State Treasurer's Office
DIGEST: This resolution designates 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.
ANALYSIS: This resolution makes the following legislative
findings:
1)529 college savings plans are important tools for California
families wanting to save for their children's college
education. The plans offer a diverse range of investment
options, tax-deferred growth, and withdrawals free of state
and federal taxes when those withdrawals are used for
qualified higher education expenses such as tuition, fees,
books, certain room and board costs, and required supplies.
2)The ScholarShare College Savings Plan, which has served as
California's official state-sponsored 529 college savings plan
since its launch in 1999, has grown to more than $6.37 billion
in total plan assets held in over 270,000 ScholarShare
accounts. The Plan has helped students meet their higher
education goals with over $333 million withdrawn annually for
qualified higher education expenses at over 958 colleges and
ACR 168
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universities.
3)From 2005-06 to 2014-15, tuition rates have increased at the
University of California (114%), the California State
University (117%), and the California Community Colleges
(130%). Over the past 40 years, tuition rates have
consistently increased at two to three times the rate of
inflation every year.
4)College savings plans, such as the ScholarShare College
Savings Plan, help families to limit or eliminate future
student loan debt by helping them save for future higher
education expenses.
5)The contributions families make today pay off in the form of
an increased earning potential for their children in the
future, with a college graduate earning an average of $1
million more than a high school graduate during his or her
career according to the United States Census Bureau.
This resolution designates 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 EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified5/16/16)
State Treasurer's Office (source)
OPPOSITION: (Verified5/16/16)
ACR 168
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None received
Prepared by: Melissa Ward / SFA / (916) 651-1520
5/18/16 16:21:39
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