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.
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