Allows START distributions for K-12 expenses. (8/1/18) (OR DECREASE GF RV See Note)
Impact
If enacted, SB 379 would significantly change the financial landscape for education funding in Louisiana by expanding the eligibility of funds in education savings accounts. This modification would enable families to use their savings for primary and secondary education expenses, potentially reducing the financial burden of K-12 tuition and associated costs. The intent is to improve access to educational resources and provide financial relief to families, thereby promoting educational attainment among Louisiana's youth.
Summary
Senate Bill 379 seeks to amend the Louisiana Student Tuition Assistance and Revenue Trust Program (START Program) by permitting distributions from education savings accounts for K-12 educational expenses. This bill aligns the state's education savings account regulations with the federal Tax Cuts and Jobs Act, which allows for broader uses of 529 College Savings Plan funds, specifically for eligible K-12 expenses as well as for higher education costs. The bill is set to take effect on August 1, 2018.
Sentiment
Overall sentiment concerning SB 379 may be generally positive among proponents of school choice and education reform, who argue that it empowers families to have more control over their children's education funding. However, there is likely to be contention among critics who fear that such measures might siphon necessary resources away from public schools. Supporters view the bill as a step towards enhancing educational flexibility, while opponents may argue against the diversion of funds from already underfunded state educational systems.
Contention
The primary points of contention relate to the implications of allowing students to use state-funded educational savings for K-12 expenses. Critics may raise concerns about equity and access, particularly how the law could disproportionately benefit wealthier families who are more likely to take advantage of such programs, while lower-income families may remain at a disadvantage. Additionally, there are concerns regarding potential impacts on public school funding and enrollment, as increased use of education savings accounts could divert public resources to private and charter schools.
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)
Excludes certain amounts deposited into ABLE accounts for qualified expenses of persons with disabilities from state income tax. (8/1/25) (OR DECREASE 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)
In tuition account program, further providing for declaration of policy, for definitions, for Tuition Account Programs Bureau, for powers of department, for Tuition Account Guaranteed Savings Program, for Tuition Account Investment Program, for general provisions governing both tuition account programs and for Federal taxation; establishing the Keystone Scholars Grant Program and the Keystone Scholars Grant Program Account; and making a repeal.
Creates the La. Postsecondary Education Board of Trustees as the sole governing board for postsecondary education and provides relative to the powers, duties, and functions of the board.