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Minutes for SB473 - Committee on Education
Short Title
Expanding the low-income family postsecondary savings accounts incentive program to include military servicemembers and veterans and allowing contributions by charitable organizations.
Minutes Content for Mon, Mar 16, 2020
Staff gave an overview of the bill.
Senator Bollier asked for the legal difference between the military of “residing” versus being the “resident of”. Staff agreed to research the answer.
Proponent Testimony:
Kansas State Treasurer Jake LaTurner said the Kansas Investments Developing Scholars (KIDS) Matching Grant Program was created as an incentive program for the purpose of encouraging the establishment of post-secondary savings accounts by income-eligible individuals and families. He explained how the program works and stated the program has never had full participation. This bill makes three changes to the KIDS program. It will allow friends and family members to contribute to a child’s account, it will modify the definition of “qualified individual or family” to allow up to 300 applications from Kansans currently serving in or honorably discharged veterans of the Kansas National Guard or any branch of the United States military and it would facilitate contributions from charitable organizations to accounts in the KIDS program by depositing those contributions in an account for which the withdrawals are restricted to qualified withdrawals and matching those contributions dollar-for-dollar. His goal is to remove barriers for Kansas families taking advantage of the KIDS Matching Grant Program. Their greatest challenge is the very families who can benefit the most from this program in many cases do not have the disposable income to contribute to an account. SB473 will serve to increase the number of active participants in the program, increase the amount contributed to accounts and improve the likelihood of these children participating in future post-secondary education. (Attachment 1)
Blake Flanders, PhD, President and CEO, Kansas Board of Regents, reported that at no time has the KIDS Matching Grant Program approached the statutory limit of 1,200 student recipients statewide. This bill would promote wider adoption by allowing dependents of active or retired members of the military or dependents of the Kansas National Guard to also qualify for the state match. KBOR is committed to promoting higher education as a path to greater economic development for our state. A document explaining the details of the KIDS Matching Grant program was given to the Committee. (Attachment 2) (Attachment 3)
Senator Braun asked what Dr. Flanders meant with the statement that the program is underutilized. Dr. Flanders responded by saying this program was developed to help low-income families but discovered there were some barriers to keep them from taking advantage of the program.
Senator Pyle asked if the people they are trying to add to this program are already qualified to participate. Treasurer LaTurner verified they were, except the Military piece does not require low-income. Senator Pyle asked if this is an expansion of the state government’s role. Treasurer LaTurner replied it would not because they are taking what has already existed and allowing outside groups and family members to receive assistance.
Senator Braun asked what the fiscal note would be. Treasurer LaTurner said the maximum amount for the 1,200 slots would be $720,000; 300 slots for the Military and 900 for low-income families. It is predicted the Military slots will be filled rapidly and, because the low-income families can receive help, it is anticipated more slots will be filled.
Senator Alley asked about the statement in Treasurer LaTurner’s testimony which said, “The program is limited to 1,200 participants with 300 from each of Kansas’s four Congressional Districts per year.” Treasurer LaTurner said that was correct, they try to evenly distribute across all Congressional Districts. Senator Alley asked how the Military would be counted. Treasurer LaTurner said he would get an answer back to him on that.
Senator Sykes asked why the number 300 was chosen for the Military. Treasurer LaTurner said they thought it was an appropriate amount but it is up to Legislators to determine that number.
Senator Pyle asked how they see the Military being divided? Treasurer LaTurner responded that it is his intent to divide them up equally by Congressional Districts. Senator Pyle also asked if the money is required to remain in the state. Treasurer LaTurner replied no.
Major Keith Marshall, National Guard Association of Kansas, said other than pure patriotism, there is no greater recruiting and retention tool for the Kansas National Guard than the ability to educate our soldiers, airmen, and their families. The Kansas National Guard is often a family affair with generations and extended family serving together. Our soldiers and airmen are Kansas residents, taxpayers, and voters who live in every legislative district in the state and report directly to the Governor of Kansas. Investing in the children of Kansas National Guard members will build a stronger Kansas for years to come. (Attachment 4)
Senator Rucker asked of Technical Sergeant Bradley to define the term “retired from the Kansas National Guard”. TSgt. Bradley asked if he was wanting the definition of a veteran. Senator Rucker said he was. TSgt. Bradley said it depends on the state’s definition as there is no national definition. Senator Rucker wondered if the writers of this bill had in mind the difference between “retired from” and “discharged”, as there could be a big difference in years between the two. Was this intentional and if so why? TSgt Bradley said he is sure the intent was to make this available to the largest number of participants. Treasurer LaTurner agreed that the intent is to make this program available to as many as possible and the language is probably boilerplate language.
Senator Sykes asked what percentage of Kansans have retired from the United States armed forces or through the Kansas National Guard. John Hess, Research, said he would try to find out.
Written testimony was submitted by:
Barry Downing, Founder, The Opportunity Project Early Learning Centers (Attachment 5)
Melinda Lewis, LMSW, Associate Professor of Practice and Associate Director, Center for Community Engagement and Collaboration, School of Social Welfare, University of Kansas (Attachment 6)
Stanley and Jacqueline Wine, KIDS. Matching Grant Recipients (Attachment 7)
Renae Riedy, KIDS. Matching Grant Recipient (Attachment 8)
Seeing no further questions, Vice Chairperson Alley closed the hearing on SB473.
