College savings dispute stalls Arkansas treasurer’s budget
LITTLE ROCK, Ark. (AP) — The budget for the Arkansas state treasurer’s office has stalled in the Legislature over a dispute about efforts to allow taxpayers with 529 college savings plans to withdraw funds for education expenses at public, private and religious K-12 schools.
The Arkansas House voted 74-15 Wednesday in favor of the treasurer’s budget, one vote shy of the 75 needed to pass. It’s the second day in a row the proposal has failed before the House. House Speaker Jeremy Gillam says he doesn’t plan another vote on the measure.
The bill includes a provision intended to mirror a change in federal tax law that was recently enacted. Supporters say the change in state law is needed to ensure Arkansans don’t face state tax penalties if they withdraw funds for those educational expenses.