Every Colorado newborn baby could soon get $100 for college from the state
DENVER, Co. (CBS12 News) — KDVR reports that every newborn baby born in Colorado, starting in 2020, could be entitled to $100 from the state.
That's because state lawmakers just gave final approval to HB 1280, which allows parents of newborns beginning in 2020 to set up a college savings account with a $100 contribution from Colorado. This will be tax-free contribution.
A sponsor of the bill in the house, Rep. Leslie Herod (D-Denver) said, "We are kick-starting their dreams." She went on to say, "what we found is that when a young person has $100 and $500 in their savings account, they are much more likely to go to college."
With about 66,000 babies born in Colorado each year, it begs the question: Where will the money come from? It will not come from taxpayers or the General Fund.
College Invest, the nonprofit that runs Colorado's 529 savings accounts, has committed to raising the money privately and through grants. It's estimated to cost $3 million annually.
"College Invest raises the money," Herod said.
Before final passage, Republicans on the Senate floor cautioned voting for this bill out of concerns the money might not be raised.
"There is that word again: 'Unfunded liability.' I would urge a no vote on this and leave it up to the parents," Sen. Vicki Marble (R-Weld) said.
Sen. Owen Hill (R-Colorado Springs) questioned whether birth records are being protected.
"In this age of privacy, I don't know if we want all the birth certificates going to the Department of Education," Hill said.
Regardless of the GOP concerns, the bill is now en route to the Gov. Polis' desk, where he is expected to sign the legislation.
