Date: From: Subject:

9/6/2002 12:46:42 PM Tom Washburne, Executive Director of the National Center for Home Education Action Alert Update on Education Savings Accounts Vote

---------------------------------------------------------------------- From the HSLDA E-lert Service... ---------------------------------------------------------------------- September 6, 2002 Dear HSLDA Members and Friends, The U.S. House of Representatives considered the Education Savings and School Excellence Performance Act of 2002 on Wednesday September 4, 2002. Included in this bill was a provision that would extend the use of education savings accounts to homeschoolers. The bill contained a number of other provisions, including making the education savings accounts law permanent. Unfortunately, the bill failed in the House of Representatives. While the bill achieved a majority, 213 in favor to 188 opposed, it needed a 2/3 super majority to pass under the procedure by which the bill was brought to a vote. We will keep you informed if this bill again comes for a vote. Thanks to all who called their Congressmen in support of this bill. Click on the following link to see how your congressman voted. http://clerkweb.house.gov/cgi-bin/vote.exe?year=2002&rollnumber=371 BACKGROUND Currently, some homeschoolers do not qualify for Educational Savings Accounts. Home school students qualify only in states that define homeschools as private schools. These states include: AL, CA, DE, IL, IN, KS, KY, LA, MI, NC, NE, TN, and TX. Five other states CO, FL, ME, VA, WV, and UT recognize groups of homeschoolers as private schools, but individual home schools do not qualify. How do these education savings accounts work? An ESA is an account in which interest and capital accumulate tax free for educational purposes. For example, upon the birth of their first child, a family invests $2,000 in an ESA. They deposit $2,000 each year until the child reaches the age of six, at which time the parents will have saved $12,000. If their money has been compounding annually at 13% during that time, they will have earned $4,645.41 of tax-free money toward their child's education expenses. A little math demonstrates that the $4,645.41 in interest, divided by 12 years of education, would give parents approximately $387.12 per year to spend on their child's education. Home school families would especially benefit from the fact that anyone, not just parents, can contribute to a child's ESA. Friends and relatives can give, as long as annual contributions do not exceed $2,000. These new provisions are effective for tax years beginning January 1, 2002. Very truly yours, Thomas Washburne Director of the National Center for Home Education {{JoinAd}} ---------------------------------------------------------------------- The HSLDA E-lert Service is a service of: Home School Legal Defense Association P.O. Box 3000 Purcellville, Virginia 20134 Phone: (540) 338-5600 Fax: (540) 338-2733 E-mail: info@hslda.org Web: http://www.hslda.org ---------------------------------------------------------------------- How To Subscribe: - Subscribe to the HSLDA E-lert Service at our website: https://secure.hslda.org/hslda/elert/account.asp?Process=Subscribe - Or send an e-mail with name and complete mailing address to: subscribe@hslda.org ---------------------------------------------------------------------- Subscription Information: - You subscribed to the HSLDA E-lert Service as: {{Email}} - To unsubscribe from the HSLDA E-lert Service send an e-mail from the e-mail address you want to unsubscribe to: unsubscribe@hslda.org - To change your e-mail address or make other changes to your subscription, visit the HSLDA E-lert Service account web page at: https://secure.hslda.org/hslda/elert/account.asp ---------------------------------------------------------------------- POSTMASTERS: This message is being sent to the most recent address we have for our subscribers. If this is an invalid e-mail address or you have other problems, please reply to webmaster@hslda.org. ---------------------------------------------------------------------- DISCLAIMER: This is considered a private and confidential message from HSLDA to its bonafide HSLDA E-lert Service subscribers. HSLDA cannot attest to the authenticity of copies posted, forwarded, or sent by any party other than HSLDA. ---------------------------------------------------------------------- NOTE: Please do not reply or otherwise use this e-mail address; hslda@hslda.org is for broadcast purposes only and is not intended to receive incoming messages. We cannot reply to any e-mail sent to this address. If you have comments or questions, please send e-mail to info@hslda.org or call HSLDA at 540-338-5600. HSLDA members can also e-mail staff directly through the Members website at http://members.hslda.org/contact.asp. Thank you for your cooperation. ----------------------------------------------------------------------

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