Creates a program for education savings accounts for tuition expenses for elementary and secondary schools (EN INCREASE GF EX See Note)
Impact
The bill modifies existing laws to introduce provisions for education savings accounts, managed by the Louisiana Tuition Trust Authority, and specifies the powers and responsibilities of this authority. Among the changes, it applies laws relating to abandoned property to account funds and sets forth administrative procedures including the oversight of payroll withholdings intended for contributions to these accounts. The program designates specific income eligibility criteria, ensuring that a beneficiary's family income is below a certain threshold for participation.
Summary
House Bill 650 establishes the Louisiana Student Tuition Assistance and Revenue Trust Kindergarten Through Grade Twelve Program, referred to as the START K12 Program. This legislation allows for the creation of education savings accounts aimed at providing financing assistance for elementary and secondary education expenses. The program's primary purpose is to enable families to cover tuition costs for their designated beneficiaries by allowing for routine deposit of funds into the accounts, which can be used for eligible educational expenses.
Sentiment
The sentiment surrounding HB 650 is generally supportive, particularly among legislators who view it as a significant step toward enhancing educational accessibility for families in Louisiana. Proponents argue that the bill promotes educational equity by targeting assistance to lower-income families, thereby easing financial burdens. However, there may be concerns regarding the efficacy and sustainable funding of the program, as reliance on state appropriations and the management of the education savings accounts remain points of scrutiny.
Contention
Despite general support, notable points of contention may arise regarding the limitations imposed on account owners relating to income thresholds and the selection of beneficiaries. Critics might argue that such limitations could inadvertently exclude deserving students or create administrative delays. Moreover, questions about the sustainability of the program's funding could lead to broader debates about state budgeting priorities and long-term investments in education.
Excludes amounts deposited into certain education savings accounts for tuition expenses for elementary and secondary schools from state income taxes (RE DECREASE GF RV See Note)
Excludes amounts deposited into certain education savings accounts for tuition expenses for elementary and secondary schools from state income tax. (1/1/22) (EN DECREASE GF RV See Note)
Increases the individual income tax exemption for deposits into certain education savings accounts for tuition expenses for elementary and secondary schools. (8/1/23) (OR DECREASE GF RV See Note)
Creates the Louisiana Giving All True Opportunity to Rise (LA GATOR) Scholarship Program to provide educational savings accounts for parental choice in K-12 education. (gov sig) (EN INCREASE GF EX See Note)
Increases the amount of the individual income tax deductions for elementary and secondary school tuition, educational expenses for home-schooled children, and educational expenses for a quality public education (EN -$2,200,000 GF RV See Note)
Prohibits the $25 credit for educational expenses for each child attending nonpublic elementary and secondary school if the tax deduction for payment of tuition and fees is taken and establishes the Student Assessment for a Valuable Education (SAVE) Credit Program. (gov sig) (EN -$347,700,000 GF RV See Note)
Excludes amounts deposited into certain education savings accounts for tuition expenses for elementary and secondary schools from state income taxes (RE DECREASE GF RV See Note)
Excludes amounts deposited into certain education savings accounts for tuition expenses for elementary and secondary schools from state income tax. (1/1/22) (EN DECREASE GF RV See Note)