Texas Senate Bill SB1325

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/18/11
• Introduced: 3/9/11
• Voted on by Senate: 4/28/11
• Refer: 3/16/11
• Report Pass: 4/18/11
• Engrossed: 4/28/11
• Refer: 4/29/11

Caption

Relating to the administration of the Texas Save and Match Program to assist qualifying beneficiaries under the state's prepaid tuition unit program and college savings plans and to the treatment of a beneficiary's assets under a prepaid tuition program or a college savings plan in determining eligibility for student financial assistance and other assistance programs.

Impact

The proposed legislation is significant in the context of state laws governing financial assistance for education. SB1325 modifies the treatment of a beneficiary's assets under the prepaid tuition program, so that these assets are excluded when determining eligibility for various state-funded assistance programs. This change is expected to enhance opportunities for students relying on these savings programs, helping them access necessary financial resources for their education without the stigma of asset limitations affecting their eligibility for aid.

Summary

SB1325, relating to the administration of the Texas Save and Match Program, aims to assist qualifying beneficiaries under the state's prepaid tuition unit program and college savings plans. This bill establishes that contributions made to savings trust accounts or prepaid tuition contracts can be matched with additional funds to incentivize higher education savings among families. The intent is to make higher education more affordable and accessible, especially for low-income families. Educators and advocates feel this program can significantly impact students' ability to pursue advanced studies without excessive financial burdens.

Contention

Notable points of contention around SB1325 center on the ramifications of the matching funds structure and the overall financial viability of the Texas Save and Match Program. Some legislators and stakeholders are concerned about the potential for the program to place a reliance on state appropriations, leading to budgetary strains in future legislative sessions. There are questions regarding the effectiveness of matching programs to genuinely drive participation in higher education savings rather than merely acting as a stopgap for already determined assistance needs. This dynamic highlights a tension between investment in education and sustainable fiscal policies.