Governor Newsom Highlights Universal College Savings Program at Celebration of $11 Millionth Deposit for Kindergarten to College Program in San Francisco | California Governor

San Francisco’s Kindergarten to Faculty program, created by then-Mayor Newsom, has deposited $11 million for practically 50,000 public college college students

Governor Newsom’s common school financial savings account program will begin an account for each Californian born after July 1, 2022 and people college students who’re extra in want of help will likely be eligible for upwards of $1,500 deposits

SAN FRANCISCO – As we speak, Governor Gavin Newsom joined a category of 1st graders from Bryant Elementary Faculty as they deposited the $11 millionth greenback into Kindergarten to Faculty financial savings accounts, highlighting the success of this program and the way the Administration has expanded this idea statewide.

San Francisco’s Kindergarten to Faculty (K2C) program, based in 2011 by then-San Francisco Mayor Newsom and Treasurer José Cisneros, robotically opens a financial savings account seeded with $50 in public funds for each baby getting into kindergarten in San Francisco’s public faculties, placing college students on a path to varsity from their first day of college. There are practically 50,000 K2C contributors who, as of as we speak, have $11 million saved for post-secondary schooling.

Final yr, Governor Newsom made historical past by creating the biggest statewide school financial savings account program within the nation, offering at the very least $500 for each eligible low-income pupil in California. Analysis has proven that when youngsters have a school financial savings account in their very own identify – even with lower than $500 in it – they’re 3 times as prone to attend school, and 4 occasions extra prone to end school.

“Faculty financial savings accounts are transformational alternatives for hundreds of thousands of children to achieve success in school,” mentioned Governor Newsom. “This system we created right here in San Francisco has invested $11 million in 1000’s of children’ futures, and we’re taking that promise of success statewide – making a common school financial savings account program so that each California pupil may be school prepared.”

• Common school financial savings accounts for Californians born after July 1, 2022. All newborns born in California after July 1, 2022 could have accounts opened for them – universally. It will embrace a $25 base deposit, with as much as $75 additional in incentives for registering an internet account, and so on. As soon as low-income kids from this cohort attain first grade at public college, the intent is to make base and supplemental deposits into these accounts, eliminating the necessity to arrange new accounts for first graders yearly.

• Upwards of $1,500 for these college students most in want. In July, public college college students in grades 1-12 this 2021-22 educational yr could have accounts opened on their behalf beneath the next standards: Low-income college students will obtain a base deposit of $500, with supplemental deposits of $500 every for homeless and foster youth, for a complete quantity as much as $1,500 (i.e., a low-income foster youth experiencing homelessness). Yearly thereafter, all eligible first graders in public college could have accounts opened for them pursuant to the identical standards. The primary set of accounts are anticipated to be opened for about 3.5 million college students this yr, with an estimated 300,000 college students every year thereafter.

All households within the CalKIDS Program will likely be inspired to open and hyperlink their very own ScholarShare 529 school financial savings account to maximise their financial savings. Because the CalKIDS Program unfolds, the state encourages help from private and non-private leaders to market this program to households in all 58 counties. The accounts will likely be tax-advantaged, enable for funding progress potential for youthful contributors, and guarantee capital preservation to accommodate highschool college students who will likely be withdrawing funds quickly. This system will likely be accessible no matter immigration standing.

San Francisco’s K2C program was the primary common Little one Financial savings Account program within the nation and is that this week celebrating its 10^th anniversary in 2021 with the discharge of a brand new video and report. This program has been replicated throughout the nation, with 123 lively Faculty Financial savings Account packages reaching greater than 1.2 million kids in 39 states, together with municipal packages in Oakland, Los Angeles and New York Metropolis, and statewide packages in Pennsylvania, Indiana and Maine.

“We began K2C so that each pupil in our public faculties would know that they’ve a future price saving for,” mentioned San Francisco Treasurer José Cisneros. “Extra vital than the cash itself, $11 million in financial savings represents hundreds of thousands of conversations our households are having with their kids about going to varsity.”