Ryan Signs College Savings Program Bill To Help Pay Tuition

SPRINGFIELD -- Governor George H. Ryan today approved legislation initiated by Treasurer Judy Barr Topinka to expand the state's efforts to help more students attend college and trade schools.

Senate Bill 1014 creates the College Savings Pool program under the Treasurer's office allowing the state treasurer to receive money paid into the pool by participants. The Treasurer's College Savings Program would provide more options for people who desire to attend private and technical schools.

"This bill is an extension on my pledge to help more students attend college and trade schools," Ryan said. "Today, we are giving people exactly what they ask for - a chance to get an education."

Passage of Senate Bill 1014 was spearheaded by Topinka, who will develop a College Savings Pool to receive and invest participants' money in accounts on their behalf. In addition, this bill provides that new accounts must be processed through participating financial institutions and that the Treasurer may invest moneys in the College Savings Pool according to the rules of the Illinois State Board of Investment.

This legislation complements Illinois' current "529 Plan" that allows parents or grandparents to set aside tax-deferred dollars in an account of which the grandchild is the beneficiary. "Hand-in-hand, these programs improve the higher education system in Illinois," Ryan added.

Senate Bill 1014 was sponsored by Sen. Frank Watson, R-Carlyle ; Sen. President James "Pate" Philip, R-Addison; Sen. Walter Dudycz, R-Chicago; Sen. Adeline Geo-Karis, R-Zion; Sen. Bill Shaw, D-Markham; House Speaker Michael Madigan, D-Chicago, and Rep. Doug Scott, D-Rockford.

The bill takes effect Jan. 1, 2000.