| A Bold Proposal Print the proposal A Bold Proposal SEED | Oklahoma Kids' College Savings Campaign |
|
The Oklahoma Kids' College Savings Campaign aims to increase opportunity by expanding the number of low- to moderate-income families that save for their children's college education with the Oklahoma 529 College Savings Plans. College savings plans can bridge the gap between tuition assistance programs, such as the Oklahoma Higher Learning Access Program (OHLAP), and the cost of campus housing, books, supplies, and fees. More children with college savings plans will lead to a more productive and prosperous Oklahoma because future Oklahomans will more likely: have a college degree or other post-secondary education, save and invest, be financially responsible, and gain economic self-sufficiency.
To achieve these goals, the Oklahoma Kids' College Savings Campaign has developed a policy proposal that will enable Oklahoma's children to build financially responsible, brighter, and more secure futures. For children born in 2008 and beyond, the Campaign proposes: The Oklahoma State Treasurer's Office will establish an Oklahoma 529 College Savings Plan with an initial deposit at birth of $200 for Oklahoma children. The Oklahoma State Treasurer's Offices will match 1:1 low-income parent contributions to their Oklahoma 529 College Savings Plans up to $100 annually for at least the first five years of life. The State of Oklahoma will provide state income tax deductions of up to $500 annually per employee for employer matching contributions to employees' Oklahoma 529 College Savings Plans.
The following table provides more detail about the Campaign's policy proposal. Oklahoma Kids' College Savings Campaign Policy Proposal | Issue | Provision | Eligibility | Universal or near universal, all children born 2008 and beyond | Participation | Automatic with opportunity to opt out | Initial Deposit | Oklahoma Treasurer deposits $200 at birth in a 529 College Savings Plan. Participation either: - for all children or,
- targeted family income level
| Public Matching Deposits | Low-income family 529 college savings plan contributions matched 1:1 by Oklahoma Treasurer for children ages 1 to 5 years old. Low-income family target may range from 100% to 200% of poverty level. Maximum annual match $100. | Public Funding Mechanisms | Direct initial deposit from general or dedicated revenues, and either refundable tax credits or direct deposits from general or dedicated revenues for matching contributions. Public portion of 529 accounts not used returned to trust fund for future deposits. | Private Contributions | Tax deductible employer 1:1 matching contributions up to $500 annually to employee 529 college savings plans | Accounts & Withdrawals | Public contributions in separate state pooled 529 college savings account. Withdrawals limited to approved higher education expenses. Family and other private contributions placed in conventional 529 College Savings Plan. |
|
