Latest news with #educationfunding
Yahoo
21 hours ago
- Business
- Yahoo
A 529 account can make saving for your child's future go farther
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. The cost of college has more than doubled in the past 20 years, and as a result, families are struggling to plan appropriately for their child's higher education goals. According to research by the Society of Actuaries, 6 in 10 Americans have said they delayed their retirement to plan for a family member's education. Though a lot of important factors determine the most realistic and cost-effective plan to pay for college, Tricia Scarlata, head of education planning at JPMorgan Asset Management, spoke on Yahoo Finance's Decoding Retirement podcast about how essential a 529 account can be in ensuring capital goals are met. "My goal is to always talk about how if you're not investing and you're not potentially leveraging a 529 account, you're missing out on that tax-free growth and compounding over time," Scarlata said (see video above or listen below). "Cash is just not going to get you there. And so investing and leveraging that tax-free benefit is really what we try to encourage people to do." This embedded content is not available in your region. A 529 plan is a tax-advantaged savings account dedicated specifically to saving for future education expenses. It's not just for college — these accounts can also be used to pay for trade schools or tuition for K-12 education, offering tax-free withdrawals for qualifying expenses. The money in the account is then invested, compounding with tax-deferred earnings to be used by the designated beneficiary. "If you just look at the two accounts side by side, a taxable and a nontaxable account, all things being equal, you make a $10,000 contribution upfront, and then you subsequently put in $500 a month — at the end of 18 years, you have almost $42,000 more in the tax-free account," Scarlata explained, breaking down the difference a 529 account can make when saving for education. "That's a big amount." Read more: How much should I save before going to college? By adding education plans to your long-term savings goals, you can also avoid the temptation of borrowing against your own 401(k) to pay for a child's tuition. "What we do find is a lot of [parents] are borrowing against their retirement to pay those tuition bills," Scarlata said. "And that's where I always get concerned, because when you start to borrow against your retirement or your 401(k), what we see is that most people then don't contribute. A lot of times they're missing out on that company's match, and that's free money." She also explained that it's a common misconception that the money in the account won't be useful should the designated beneficiary decide not to go to college. As long as the account has been open for 15 years, up to $7,000 can be rolled over into a Roth IRA for the beneficiary per year, with a lifetime rollover cap of $35,000. "If you're able to do that $35,000 over five years, and starting when the adult is 23 — at 65, it's almost $400,000," she said. Read more: How to open a savings account for a child Though it may seem restrictive to plan in advance for a child's education, Scarlata emphasized that it's ultimately more effective for everyone in the long run to do so. "It's a family decision," she said. "And what we have found is that parents do not jeopardize their college savings fund. They almost never take those dollars out early — they wait till that child goes to college and then they withdraw." Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service.
CNN
21 hours ago
- Business
- CNN
Dana Bash asks Trump's budget director about proposed cuts to cancer research
CNN's Dana Bash presses Office of Management and Budget Director Russ Vought on the Trump administration's proposal to cut non-defense spending by more than 22% — including deep reductions to education, food assistance, and billions in cancer research funding. As Vought defends the cuts and criticizes the NIH, Bash challenges him on the real-world impact to life-saving medical research.
Yahoo
a day ago
- Business
- Yahoo
MPS financial reports: deadline past, state funding at risk
The Brief Milwaukee Public Schools had a Friday, May 30 deadline to turn in financial reports to the state. Last year, the state held back $16.6 million when the 2023 reports were tardy. Millions of dollars for the school district could be on the line. MILWAUKEE - Milwaukee Public Schools had a Friday, May 30 deadline to turn in financial reports to the state. Millions of dollars for the school district could be on the line. The deadline has passed, but now neither MPS nor the state are talking. What we know MPS' 2024 audited financial report was originally due in December. MPS missed that. In January, the Wisconsin Department of Public Instruction gave MPS an extension. FREE DOWNLOAD: Get breaking news alerts in the FOX LOCAL Mobile app for iOS or Android But then, in May, it gave two hard deadlines: May 16 to turn in the 2024 annual report – which it missed – and May 30, to turn in the audited financial statements. What they're saying "Families, residents, taxpayers in the city of Milwaukee, across the state of Wisconsin, quite frankly, deserve more responsible stewardship," said Colleston Morgan, Jr., City Forward Collective leader. "We are now more than a year into this financial fiasco at Milwaukee Public Schools. And we're yet again failing to meet deadlines, putting tens of millions of dollars more in funding at risk." The superintendent answered questions on Wednesday. "The team is continuing to work around the clock to be able to meet the timeframe that was laid out by the state, so we just continue to plug away," Dr. Brenda Cassellius said. And Thursday: "We're still cautiously optimistic, but we'll have more for you tomorrow," she said. That deadline passed. "We expect to be able to share more information next week," an MPS spokesperson said. Dig deeper Now, on Saturday, May 31, the parking lot at MPS is fairly empty, except for a few cars. It is unknown if it was people working inside, or people playing in the next-door park. SIGN UP TODAY: Get daily headlines, breaking news emails from FOX6 News If MPS missed the Friday deadline, the state hasn't said how much MPS could lose. But, last year, it held back $16.6 million when the 2023 reports were tardy. The state still holds that money. Last year, Gov. Tony Evers ordered an audit of MPS. In February, it found the computer systems are partially to blame, with finance systems different from hr and payroll, which slows things down. It also found DPI and MPS' financial reporting software don't communicate well with each other – again causing complications and delays. The Source The information in this post was collected and produced by FOX6 News.
Yahoo
a day ago
- Business
- Yahoo
Lawmakers debate state budget in final hours of session
SPRINGFIELD, Ill. (WGN) – State lawmakers are still ironing out the details of a $1 billion tax package with just a few hours left in the legislative session. In order to make their proposed $55.2 billion state budget work, Democrats are finalizing cuts and tax increases. Their ideas include an amnesty program to collect more money from delinquent tax filers and increasing taxes on gambling, tobacco and vape products. The measure would also tax large transnational corporations that store assets overseas. On the savings side, the spending plan cuts funding for health insurance for undocumented residents between the ages of 42 and 64. While it's a controversial decision for the Democratic majority, the move is expected to save the state over $300 million. PREVIOUS COVERAGE: Spring session entering final day as budget deadline looms Lawmakers said they will also boost funding for K-12 education by $307 million, but that comes with cutting a grant program for high property tax, low real estate value districts. In added revenue, lawmakers will provide more special grants for safety net hospitals that are known to treat uninsured patients. A wage increase of 80 cents per hour for professionals with developmental disabilities is also on the table, along with a 5% pay raise for lawmakers tied to inflation. On the other side of the aisle, Republicans said they found the state spending appalling. 'In Governor Pritzker's six years in office, he has increased spending by 40%. There are very few families that have had their income increase by 40% over six years,' Sen. John Curran (R-Lemont) said. Democrats, though, argue the spending is necessary given uncertainty at the federal level. 'The reality is we are still climbing out of the hollowing out of the state government, which occurred during the previous administration,' Sen. Elgie Sims (D-Chicago) said. 'The challenges which exist, or have existed, are only being exacerbated by actions at the federal level.' Illinois budget battle: What Chicago needs from Springfield The House also passed a bill that would allow terminally ill people to get medical aid in dying. Debate on this topic on the House floor Thursday night was passionate. On Saturday afternoon, a Senate committee skipped address of the above bill. Whether it will be raised again before deadline is unclear at this time. Lawmakers also signed off on a bill that, according to Democrats, would control the rising cost of prescription drugs while helping small pharmacies in the state. The Prescription Drug Affordability Act imposes new fees on pharmacy benefit managers. There is concern that pharmacy benefit managers raise the costs of prescription drugs. A measure that would allow eligible high school students to receive direct admission to public universities based on academic performance is also headed to Gov. JB Pritzker's desk. Lawmakers also moved to further develop Illinois into a state with abundant reproductive rights, passing bills to expand protection for health care professionals and expand access for students on college campuses. Illinois has a $770M hole in the transit budget that could leave commuters stranded As far as the transit budget, lawmakers are still trying to patch a $770 million hole. After months of warning from Chicagoland transit that bus and train service might be cut without a state bailout, lawmakers are working to hike the cost of tolls and rideshares to help the system. On Saturday, rideshare service Uber warned customers about the proposed increase. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Health
- Yahoo
Repairs and upgrades for schools across the county
Nearly 20 schools across Lincolnshire are to get repairs and upgrades. The government has announced funding that will be given to 18 of the county's schools. The work will start in the summer and run until next April. Education Secretary Bridget Phillipson said: "Parents expect their children to learn in a safe, warm environment. It's what children deserve." There will be urgent fire safety work at Spalding Grammar School to prevent its closure, and Westgate Academy in Lincoln will have asbestos removed. The money is part of more than £40m awarded to schools across the east Midlands, according to the Local Democracy Reporting Service. The other Lincolnshire schools set to benefit are: Boston Grammar School Boston High School Gipsey Bridge Academy, Thornton Le Fen, near Boston The King's School, Grantham Bourne Westfield Primary Academy Little Gonerby Church of England Primary Academy, Grantham Queen Elizabeth's Grammar, Alford John Spendluffe Foundation Technology College, Alford Branston Community Academy, near Lincoln Sir Robert Pattinson Academy, North Hykeham Carre's Grammar School, Sleaford Kesteven & Sleaford High School Branston Junior Academy, near Lincoln Bassingham Primary School, near Lincoln Leadenham Church of England Primary Academy, near Sleaford Surfleet Primary School, Pinchbeck Phillipson said: "This investment is about more than just buildings – it's about showing children that their education matters, their futures matter." The government has also announced investment in hospitals including the Pilgrim Hospital, Boston, which will receive £7m for work on its electrical systems and fire safety. Lincolnshire Partnership NHS Foundation Trust has been given about £750,000 for similar work across its sites. Health Secretary Wes Streeting said: "Patients and staff deserve to be in buildings that are safe, comfortable and fit for purpose." Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Crumbling schools hit by leaks and cold, BBC finds Local Democracy Reporting Service
