The Pacific Research Institute is pleased to co-sponsor the study Education Savings Accounts: A Path to Give All Children an Effective Education and Prepare Them for Life by Jonathan Butcher, Education Director at the Goldwater Institute. Education savings accounts provide an innovative solution to childrens educational needs.
Conceived by the Goldwater Institute in 2005 and passed into law in Arizona in 2011, education savings accounts allow the state to deposit funds to a parent-controlled savings account based on an education funding formula. Parents use the accounts much like health savings accounts (HSAs) for medical services and can pay for a variety of expenses, such as tutoring, private school tuition, and online classes. These accounts offer parents and children more choices in a childs education and allow children to access education options either online, across states, or through new devices such as iPads.
Individual Retirement Accounts and Health Savings Accounts have allowed people to take greater control of their health care and future retirement. Education Savings Accounts offer the same advantages. This groundbreaking education reform provides every state especially California — with an excellent model to follow, said Lance Izumi, senior director of education studies at Pacific Research Institute.
With developments in technology, families have more options than ever in K-12 education. This report outlines how education savings accounts give parents even more flexibility. Moreover, it offers a road map for other states as they design a similar policy.