Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB1036

Introduced

2/19/24

Refer

2/19/24

Failed

4/15/24

Caption

Creating a baby bond program and baby bond fund, granting rule-making authority, and making an appropriation. (FE)

Impact

The implementation of this bill will likely have significant implications for economic equality in Wisconsin. By providing these funds, the state aims to foster greater opportunities for educational advancement, homeownership, and financial independence among young adults from disadvantaged backgrounds. Furthermore, the program is structured to support financial literacy, requiring beneficiaries to complete a financial education course before they can access their funds. This could enhance the financial decision-making skills of young people, potentially leading to better economic outcomes.

Summary

Senate Bill 1036 is designed to create a baby bond program in Wisconsin, aiming to provide financial support to children born in the state. The bill mandates the Department of Financial Institutions (DFI) to establish and manage a baby bond trust fund, which will be funded with an initial deposit of $3,000 for each qualified child. Eligibility for these accounts is determined based on the mother's income level prior to birth, specifically whether they qualify for the Medical Assistance program. The bill aims to assist children from lower-income families by providing a financial foundation that can be utilized for various eligible expenses once they reach adulthood.

Contention

While SB1036 has garnered support for its intention to help reduce wealth disparities, some contention may arise regarding ongoing funding and management of the program. Concerns regarding the eligibility requirements and the effectiveness of the financial literacy component may also surface. Additionally, debates are anticipated over potential changes to tax regulations, as distributions from the baby bond accounts will be exempt from state income tax, which may impact state revenue. Stakeholders from different political and economic backgrounds might have differing views on the viability and impact of such a fiscal program.