Before long, your elected representatives will be meeting in Topeka to fulfill the commitment made to you, the citizens of this fine state. There are obviously many tough issues facing the 2006 legislature. My office will certainly do our part to help in every way we can but remember the best way to make your voice heard is to contact the people you have elected to represent your views and interests.
There are a number of ways to contact your elected representatives and I encourage you to be engaged in the upcoming legislative session. Visit www.Kansas.gov for a gateway into Kansas government. You can also visit www.KsLegislature.org to search for House of Representative and Senate members. I can be reached by calling 785-296-3171 or visiting www.KansasStateTreasurer.com.
The Kansas State Treasurer's office has a number of bills to present to our lawmakers. Each piece of legislation will enhance the services we provide to Kansans and if signed into law could benefit you financially. Our plan is to seek improvements to the Unclaimed Property and Learning Quest programs.
Kansas Unclaimed Property and Cash:
Last year we introduced Unclaimed Property legislation that proposed paying interest on property claimed that was originally reported to our office as an interest-bearing account. We plan to lobby the legislature again this year to codify this provision.
If passed, the legislation would amend the Unclaimed Property Act to allow for payment of interest on interest-bearing accounts such as savings accounts or certificates of deposit. Currently the interest earned on these types of accounts is retained by the state in the General Fund. We believe returning interest on savings accounts and certificates of deposit is the right thing to do and it would not put an undue strain on the State General Fund.
We are holding more than $170 million in unclaimed property and cash for Kansans. Unclaimed property is inactive savings and checking accounts, uncashed checks, stock shares and bonds, dividend checks, insurance proceeds, mineral royalties, utility deposits, and safe deposit box contents. The Kansas State Treasurer's office receives the property from the businesses and state and local governments after a certain number of years as required by law. The unclaimed property and cash is kept in the State's general fund for the benefit of all Kansans until the rightful owner or heirs claim it.
Find out if you have any! Visit www.KansasCash.com or call 1-800-432-0386 to search the Unclaimed Property database.
Learning Quest, the Kansas 529 Education Savings Program:
2005 was a successful year for Learning Quest, the Kansas 529 Education Savings Program. With the passage of two bills being drafted, we hope 2006 will be just as exciting. Our first proposal is for Kansans to receive a Kansas tax-deduction for contributing to any 529 plan, even if they choose to invest in another state's plan. This would level the playing field and allow Kansans to choose the plan that best meets their investment objectives.
Secondly, we would like to repeal the penalty imposed when Kansans withdraw their funds within one year after opening their account. Given the current deduction limits, we do not believe there is a significant risk of taxpayer abuse.
The goal of this program is to help Kansas kids continue their education after high school. I hope we can remove a few barriers that prevent young adults from reaching their full potential.
Learning Quest was established in 1999 by the Kansas Legislature providing individuals and organizations a tax-deferred option to save money for future higher education expenses. Kansas taxpayers can receive a state adjusted gross income deduction of up to $3,000 per child ($6,000 if married filing jointly) on contributions to Learning Quest accounts. The state-tax deduction benefit is in addition to the federal and state tax benefits of tax-deferred growth and tax-free withdrawals for qualified educational expenses.
The program, administered by my office, celebrated its fifth anniversary in 2005 and surpassed $1 billion in assets. There are no income limits for those investing, and the contribution maximum is $235,000 per beneficiary for Learning Quest and the other Kansas 529 products.
Account owners and those interested in opening an account can call 1-800-579-2203 or visit www.LearningQuest.com.
Happy New Year to you all! I'm looking forward to traveling the state and visiting your city in 2006 to share with you the progress we have made on our legislative agenda and all our other duties here at the office. It is my honor to serve as your Kansas State Treasurer. Please contact me if I can offer you or your family any assistance.
