In his State of the State Address, Gov. Justice bragged that education has become West Virginia’s centerpiece. We don’t entirely agree, but we might see the state put its money where Justice’s mouth is.
A bill already on its way to the House floor and a proposal by state Democrats could pave the way to post-secondary education for many West Virginians.
The bill, HB 2001, would create the Jumpstart Savings Act. Similar to a 529 savings account for college, the Jumpstart account could be used to pay for tools, equipment or supplies for a qualifying occupation; to earn an associate degree or pay certification or licensure fees, or to pay costs to establish a business, as we reported earlier (DP-02-11-21).
The account only requires a $25 deposit and could receive an extra $100 from the state if the account’s beneficiary is a West Virginia resident and either under the age of 18 or the account is opened within 180 days of the recipient enrolling in an apprenticeship or educational program. Almost anyone can contribute to the account, and employers can match what the employee has put in.
We are not tax experts, but if we understand correctly, employers can get a non-refundable tax credit of up to $5,000 for their match. For individuals contributing to a Jumpstart account, “a modification reducing federal adjusted gross income is hereby authorized in an amount equal to a West Virginia taxpayer’s contribution to a Jumpstart Savings account for the taxable year in which the payment is made,” according to the current text of HB 2001. In this sense, West Virginia isn’t funding the program, but it is sacrificing tax revenue in order to encourage individuals and employers to invest in vocational education.
It’s wonderful to see tradespeople get the support college-bound students often take for granted. Not everyone is suited to book learning, and Jumpstart is one way we can encourage pursuing a skill or starting a business. Tradespeople keep the world functioning; entrepreneurs keep our world innovating.
For those pursing college degrees, Democratic legislators announced in their party platform that they’d like to see the PROMISE Scholarship once again become a full-ride. Once upon a time, the PROMISE covered in-state tuition to West Virginia’s public universities. The scholarship capped at $4,750, but tuition has steadily risen. At WVU, in-state tuition is $8,976; at Marshall, $8,412.
The PROMISE Scholarship has long been a financial lifeline for West Virginians wanting to pursue higher education; and it’s often been the primary factor in keeping students in state. But PROMISE by itself is never enough anymore, and not everyone qualifies for additional aid or can afford to take out loans to cover the remaining balance.
If West Virginia really does want to make education its centerpiece, the Jumpstart Savings Act to promote vocational education and entrepreneurship as well as increasing the PROMISE Scholarship to make a college education more accessible are good ways to start.
