Bill Text: MI HR0479 | 2017-2018 | 99th Legislature | Introduced
Bill Title: A resolution to declare December 21, 2018, as Children’s Savings Account Awareness Day in the state of Michigan.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2018-12-20 - Adopted [HR0479 Detail]
Download: Michigan-2017-HR0479-Introduced.html
Rep. Anthony offered the following resolution:
House Resolution No. 479.
A resolution to declare December 21, 2018, as Children’s Savings Account Awareness Day in the state of Michigan.
Whereas, Children’s savings accounts (CSAs) are savings programs, similar to Individual Development Accounts (IDAs), sponsored by financial institutions and community based organizations, which offer behavior-based incentives and savings match opportunities to help families maximize their investments in their children’s futures. CSAs that are used to build up funds to pay for higher education expenses, especially at one of Michigan’s 15 public universities or 28 public community colleges, are instrumental in preparing young people for a stable economic future. Many institutions also offer financial coaching and other educational tools to help young people better understand financial markets and develop positive saving habits.; and
Whereas, Approximately 450,000 children nationwide have a CSA that will help them build important assets for the future, such as a higher education. There are more than 80 CSA programs in operation across the country, with initial deposits and matches from funding sources such as community foundations, individual donors, businesses, and state, local and federal agencies. According to the Community Economic Development Association of Michigan, there are currently 6 operational CSA initiatives in Michigan, servicing at least 12,635 individuals over the last two years; and
Whereas, A strong partnership among community stakeholders such as schools, financial institutions and local units of government can create a strong framework for community collaboration and improved outcomes for students. Lansing Student Accounts Valuing Education (SAVE) is one example of a partnership between the City of Lansing, the Lansing School District, and MSU Federal Credit Union that automatically enrolls students in a CSA during their first semester of kindergarten and helps them build toward saving for future higher education expenses. In Barry County, the “Kickstart to Savings” program has also been exemplary in this arena, serving as the first universal, automatic, county-wide CSA program; and
Whereas, While children with dedicated higher education savings are four times more likely to complete a degree by age 26, CSAs are often underutilized by families who could benefit the most. When considering higher education graduation rates for low income students, the benefit of CSAs is apparent. Only 7 percent of low income students without a CSA graduate, compared to a 33% graduation rate for those who do. A recent publication from “Prosperity Now” shows disparities between race and income level for use of CSAs. Over 51 percent of CSA participants are white, 27 percent are Latino, and 11 percent are African American. Low-income and immigrant families are also less likely to be aware of CSA programs. Increasing awareness of CSAs and improving access for minority groups is an important step toward ensuring equitable outcomes for all of Michigan’s children; now, therefore, be it
Resolved by the House of Representatives, That the members of this legislative body declare December 21, 2018, as Children’s Savings Account Awareness Day in the state of Michigan. We demonstrate our commitment to giving all of Michigan’s children the opportunity to pursue their dreams and goals, regardless of their financial beginnings.
