Gov. Jack Markell touted a new bill Feb. 24 would make it easier for Delawareans to save for their children’s college education.
House Bill 335, sponsored by Rep. Teresa Schooley and Sen. David P. Sokola, both D-Newark, would allow residents to have their state tax refund deposited directly into a Delaware College Investment Plan account.
The DCIP is a tax-deferred investment instrument that allows parents to choose different portfolio options based on their contribution levels and the child’s age. Fidelity Investments manages the plan in cooperation with a state board.
Markell made the announcement in the maternity ward of Bayhealth Kent General Hospital in Dover, which will make information about the DCIP available in a packet of information distributed to new parents before they take their babies home.
In the future, Markell said DCIP information will be available in maternity wards across the state.
“It’s often not the first thing parents think off when they have a new baby, but it’s something you have to plan for,” Markell said.
If HB 335 passes, it would take effect for tax returns filed in 2011.
Schooley said she’s hopeful the bill will breeze through the General Assembly.
“I hope it’s a no-brainer,” she said. “Research is showing that when parents put aside funding, it raises the expectations for the child. Children whose parents save are twice as likely to go to college.”
Email Doug Denison at doug.denison@doverpost.com.
