HOUSE MEMORIAL 64

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

G. Andres Romero

A MEMORIAL

REQUESTING THE OFFICE OF THE STATE AUDITOR TO CONVENE A PROSPERITY KIDS WORKING GROUP TO EXPLORE OPPORTUNITIES FOR PARTNERSHIP AND PROGRAM EXPANSION STATEWIDE.

     WHEREAS, in partnership with New Mexico financial institutions, prosperity works of New Mexico has created a way for young people and their families who might not otherwise have the opportunity to save money and for them and their families to develop financial literacy skills while participating in new savings opportunities; and

     WHEREAS, the savings and financial literacy program is a child savings account (CSA) called prosperity kids, and the custodial accounts established on behalf of the participants may be used for post-secondary education upon or after high school graduation; and

     WHEREAS, CSAs not used for post-secondary education may be used for a stable transition into adulthood at age twenty-three; and

     WHEREAS, with funding provided through private grants and individual contributions, prosperity works seeds each account with one hundred dollars ($100) and matches family deposits made into each CSA up to two hundred dollars ($200) a year for ten years; and

     WHEREAS, research has proven that children with a CSA are ahead of their peers in social-emotional development by age three, and ahead again in math and language in the third grade; and

     WHEREAS, research also demonstrates that children with CSAs are four to six times more likely to enroll in college and three times more likely to graduate than their peers without savings accounts; and

     WHEREAS, currently, the prosperity kids program is only available to young people living in Bernalillo county; and

     WHEREAS, research on prosperity kids five hundred thirteen pilot participants has demonstrated that a culture of savings and college expectations is a powerful motivator in the family and community; and

     WHEREAS, prosperity works and its supporters wish to see the prosperity kids program expanded statewide; and

     WHEREAS, in order to fund the expansion of the prosperity kids program statewide, there may be a possibility for assessing a fee for licensure of financial products that could provide funding for prosperity kids; and

     WHEREAS, a work group of financial experts and legislators may develop creative ways to finance this powerful opportunity for the children of New Mexico;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the state auditor be requested to convene a working group to investigate partnership opportunities and permanent funding sources, including the possibility of assessing a fee for financial products licensure that could be applied to teaching financial literacy and the expansion of the prosperity kids program statewide; and

     BE IT FURTHER RESOLVED that the state auditor be requested to invite to join the working group experts from the financial services sector as well as members of the New Mexico legislature; and

     BE IT FURTHER RESOLVED that the prosperity kids working group be requested to make policy and legislative recommendations to the second session of the fifty-third legislature; and

     BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the state auditor.

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