Citizens for Responsible Education Reform

PASS A+ Act -- S. 1133, H.R. 2646

K-12 Education Savings Accounts

Issue Description

Sen. Paul Coverdell (R-GA) is the co-sponsor (with Sen. Robert Toricelli, D-NJ) of a bill in the Senate to authorize K-12 education savings accounts. That bill, the "PASS A+ Act," or the Parent and Student Savings Account Plus Act (S. 1133). The bill was passed in the Senate last fall, only to be filibustered to death before the winter recess.

The bill has been up for debate again in the Spring session, and has been filibustered by the Democrat opposition once again. On March 26, 1998 a cloture vote was defeated by a 2 vote margin, 58-42. Sixty votes are needed to invoke cloture. The Republican leadership has not given up on this bill and will bring it back for further debate in April.

The Senate passed the Education Savings Accounts bill on April 23, 1998, by a vote of 56-43. President Clinton has vowed he will veto it. Sixty votes are needed to override a presidential veto. Since override is very unlikely, the bill is likely to be hyped to a great degree as politicians move into the fall election season.

CRER Analysis and Position

K-12 education savings accounts, as put forth in the PASS A+ Act, will not likely cause much impact on the quality of American education. They are designed as after-tax savings, with only the accrued interest being tax-free. With limits on annual contributions to these accounts set at $2500 or less, if the money saved will likely be spent during the child's early years, little interest will have accrued to cause any significant benefit to the parent.

CRER supports parents having one more means to use their own money to make decisions about their children's schooling. This legislation, while seemingly weak in its real educational impact, (contrary to what many Congressional and interest group spinners would lead us to believe), may be seen as one more link in a growing chain of movement toward more parental control over the education of our children.

Current Status

The House passed the conference report on Sen. Coverdell's PASS A+ bill (H.R. 2646) on June 18, 1998, by a vote of 225 to 197. The Senate is expected to vote on the conference report the week of June 22 before going to recess on Friday, June 26. Congressional leaders have determined that they will send the final package to the president after the Fourth of July recess. President Bill Clinton has stated that he will veto the bill.

The Senate approved the conference report on July 1, 1998 by a vote of 59-36. The bill is expected to receive action by the White House during the week of July 13, 1998.

President vetoed the bill on July 21, 1998. Override of this veto is unlikely because proponents do not have the 60 percent numbers override would require.

For additional information on this issue, visit:
American Association of School Administrators legislative update (3/30) enumerating 17 potential amendments to this bill before it comes back for consideration on 4/20. For the record, CRER is not in agreement with AASA's assessment of the bill overall, but this link does provide useful information.
Washington Post article (3/27) on status of legislation
Boston Globe article (3/26) on politics of legislation
"President Raises the Ante in School Choice Debate."

Send comments and mail to CRER

Return Home

This page hosted by Get your own Free Home Page