HB1027
To Create The Brighter Start Act Of 2025; And To Require The Treasurer Of State To Make A One-time Contribution To Each Existing And Future Arkansas Brighter Future Fund Plan Account.
AI-Generated Summary
This bill, titled the "Brighter Start Act of 2025," proposes to amend Arkansas law concerning educational savings. It mandates that the Treasurer of State will make a one-time contribution to existing and future Arkansas "Brighter Future Fund" accounts. Specifically, the bill requires a transfer of one hundred dollars ($100) from the General Revenue Fund Account of the State Apportionment Fund. This contribution is to be made to each account established for a designated beneficiary. The Treasurer of State will be responsible for administering the disbursement of these funds. Furthermore, the Treasurer will be tasked with verifying the eligibility of each account that receives this contribution under the relevant subchapter. The act aims to provide initial funding for educational savings plans.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be individuals who have established or will establish an Arkansas "Brighter Future Fund" account for a designated beneficiary. This includes parents, guardians, or other family members saving for a child's future education. The direct beneficiaries are the children or designated individuals for whom these savings accounts are intended, as they will receive an initial deposit into their educational savings. Existing and future account holders will benefit from this direct financial contribution to their savings.
Who Might Suffer?
The primary entity that would be negatively impacted is the General Revenue Fund Account of the State Apportionment Fund. This fund would experience a reduction in its balance by the total amount disbursed through the one-time contributions to all eligible "Brighter Future Fund" accounts. While the exact number of accounts is not specified, a widespread implementation would mean a tangible outflow of state funds. This could potentially affect other state programs or services that rely on the General Revenue Fund, depending on the overall fiscal impact and the fund's reserves.