In California, a bipartisan bill was introduced Wednesday in the state Senate that says every child born in California would get a $500 savings account to start building a nest egg. The money may be used for three purposes: college or continuing education, a down payment on a home or a retirement account.

If enacted, the bill would insure that every child born in California after Jan. 1, 2008, would receive the money, regardless of their parents’ income or immigration status. This is not a handout either; recipients would have to repay the state’s initial $500 investment once they turn 18.

California lawmakers in favor of the program have figured that if families added $50 a month to the state’s initial contribution, the savings account would grow to nearly $17,500 at 5 percent interest over 18 years, and that it would also promote the idea of saving money.

This program, which is modeled after a similar program put in place in Great Britain back in 2002, would make California the first state in the United States to have such a program, and the proposal would only cost taxpayers about $285 million a year.

Do-gooder politician, Sen. Bob Dutton, (R)-Rancho Cucamonga, who introduced the bill, is quick to point out that “This is the essence of equal opportunity. Every child, every person ought to get a head start.? But some folks don’t quite agree with that mentality.

Conservative hard-ass, Jim Uhler, spokesman for The National Tax Limitation Committee in Roseville say “It sounds like another give-away with other people’s money — ‘a chicken in every pot,”‘ adding that “With the budget in the red again … we have other pressing issues.”

[tags]California,Bob+Dutton,Jim+Uhler,savings+plan,tax+payers[/tags]