San Francisco Approves Funding for Kindergarten-to-College Initiative

In a late-night deal, the City of San Francisco's Board of Supervisors has approved a city budget that rounds out at about $6.5 billion. $257,000 of that sum is set to fund the Kindergarten-to-College initiative, discussed here and elsewhere, that will provide a college savings account for each child entering kindergarten in the City's public school system.

While the exact structure of these accounts remains up-in-the-air, certain parameters have been announced and new details are forthcoming on much of the plumbing of the accounts. Each student will receive $50 in a newly-opened account, and students who qualify for free or reduced-price lunch will receive an intial $100 deposit. The program will enroll roughly 25% of the city's kindergartener's this Fall, with full participation planned by the third year of the program. In addition, EARN -- a California-based non-profit -- has agreed to match the first $100 each family saves in the account.

Presumably, this program lends itself to careful study on how families make financial preparation for higher education, and the impact of account ownership on college access, affordability and completion rates. There have been exciting studies out of the Center for Social Development (New America's partner on the College Savings Initiative) indicating a link between account ownership and assets to both college attendance and college completion. In addition, the State of Maine currently provides the opportunity for $500 at birth for every baby born in the state, provided the child is enrolled by his or her first birthday.

While we may have to wait to see the results and reap the benefits of such an initiative, it is an encouraging signal that, even in times of state and local fiscal tightfistedness, San Francisco is showing an inexpensive and valuable way forward to help children accumulate assets for postsecondary education and beyond.