Governor Peter Shumlin: Child Savings Accounts

Description

Gov. Peter Shumlin, business, community, and education leaders make the case for state funding of a college savings account for every child born in Vermont. In his State of the State Address, the Governor proposed funding Child Savings Accounts (CSAs) by increasing Vermont’s mutual fund registration fee – which is currently the lowest in New England.

Vermont’s CSA program would establish a higher education savings account for every child born or adopted in Vermont. Each child will receive $250 at birth and low-income children will receive an additional $250, for a total of $500. Even this modest amount can greatly increase rates of college enrollment and graduation. Research shows that a savings account of just a few hundred dollars can increase by three times the likelihood that a low-income student will enroll in college and by four times the likelihood that they will graduate.  The CSA program would cost approximately $2.25 million per year. To pay for it, the Governor has been soliciting private philanthropic donations. In July, the Governor accepted $25,000 donation from President and CEO of Subaru of New England Ernie Boch Jr.