Relating to savings for higher education and training including creating an Iowa educational savings kick start program and a hawkeye state matching grant program, and making appropriations

This bill relates to savings for higher education and training including creating an Iowa educational savings program and a hawkeye state matching grant program. KICK START EDUCATIONAL PROGRAM. The bill creates the Iowa educational savings kick start program. The purpose of the program is to promote access to postsecondary educational opportunities by providing for the creation of a separate account funded by the state for each qualified student who is a resident of this state, upon commencement of the enrollment of the qualified student in kindergarten at a public school in this state, to alleviate the cost of expenses associated with attending a postsecondary educational institution. Within 120 days of the start of the school year, the bill requires the department of education to provide the treasurer of state with the total number of kindergarten students enrolled in public schools in this state for the school year beginning July 1, 2020, and in each succeeding school year thereafter. The bill establishes a kick start education fund in the state treasury under the control of the treasurer of state consisting of funds appropriated to the kick start education fund, any other funds appropriated to the kick start education fund, and other moneys received by the treasurer of state for deposit in the fund. The bill permits the treasurer of state to accept gifts, grants, bequests, and other private contributions for deposit into the kick start education fund. Commencing with the fiscal year beginning July 1, 2020, the bill appropriates from the general fund of the state to the kick start education fund an amount equal to the product of $100 multiplied by the number of resident students who in enroll in kindergarten in public schools for the school year starting with the school year beginning July 1, 2020, and such an appropriation shall be annually made each fiscal year thereafter based upon the product of $100 multiplied by enrollment figures in succeeding school years. In order to receive moneys under the bill, a qualified student must apply for the moneys with the treasurer of state on a form prescribed by the treasurer. A one-time payment of moneys shall be awarded pursuant to the bill if all of the following apply at the time of the application: the qualified student is a resident of this state, the qualified student is not more than years of age, and the qualified student is enrolled at a postsecondary educational institution and incurs qualified education expenses. Upon qualifying for the payment of moneys under the bill, the treasurer of state shall provide the qualified student with a payment in the amount of $100, plus the investment earnings attributable to the $100 amount since the enrollment of the qualified student in the program plus any other investment income as calculated by the treasurer. The bill provides that no property rights in the kick start education fund shall exist in favor of the qualified student. HAWKEYE STATE MATCHING GRANT FUND. The bill creates the hawkeye state matching grant program. The purpose of the program is to promote access to postsecondary educational opportunities including qualified training programs by entering into participation agreements under Code chapter 12D (529 plans) that contain matching funds from the state for each qualified student who is a resident of this state, to alleviate the cost of expenses associated with attending a postsecondary educational institution or qualifying training program.130. The account shall have the same attributes as a 529 account except as otherwise provided in the bill. For each hawkeye state matching grant account created pursuant to the bill, the state shall match dollar-for-dollar each dollar contributed by the owner of the account, up to $300 matching dollars per year, not to exceed $1,500 in matching dollars in the aggregate per qualifying student. The bill discontinues matching contributions to an account created after the qualified student turns years of age. A student whose annual household adjusted gross income is more than $75,000 is not eligible for the program. If a parent or legal guardian chooses to enroll a qualified student in the hawkeye state matching grant program, the parent or legal guardian shall return a completed application to the treasurer of state along with a copy of the parent’s or legal guardian’s tax returns in order to determine if the student qualifies for enrollment in the program. Upon receipt of the application and tax returns, and if the annual household income thresholds have been met, the student shall be enrolled in the program. If state matching funds have not been used by the qualified student by the 21st birthday of the student, the bill requires the state matching funds to be withdrawn from the account of the qualified student and used to match contributions of other qualified students. The bill creates a hawkeye state matching grant fund in the state treasury under the control of the treasurer of state consisting of funds appropriated to the fund and any other moneys received by the treasurer of state for deposit in the fund. The treasurer of state may accept gifts, grants, bequests, and other private contributions for deposit into the fund. The bill requires the moneys in the fund to be used to match the contributions of the owners of the hawkeye state matching grant account. The bill specifies it is the intent of the general assembly to appropriate moneys for deposit in the hawkeye state matching grant fund for the fiscal year beginning July 1, 2020, and for each fiscal year thereafter, in an amount sufficient to pay any matching dollars required by the program. The bill specifies that a hawkeye state matching account shall not be counted as an asset for purposes of the supplemental assistance program, the Medicaid program, the family investment program, or the children’s health insurance program. The bill provides that no property rights of the state matching funds exist in the hawkeye state matching grant account in favor of the qualified student.