Utah Educational Savings Plan (UESP) continues to appeal to investors due to its low fees and attractive investment options, according to Director Lynn Ward.
"In less than 10 years, we have a billion dollars invested for college-education purposes," Ward said Friday. "It means more students will be inclined to go on to college and be less reliant on financial aid."
UESP has more than 58,000 accounts.
The state Legislature created UESP in 1996 to encourage citizens to save for college. Parents, grandparents or others can open an account for a child's college education, and individuals can deduct from their state taxes a portion of what they invest. A husband and wife together can contribute and deduct annually $3,020 per child.
The investment fund reaching the $1 billion level comes on the heels of Ward being named UESP's new boss in January. She is credited with overhauling the plan's organizational and operational procedures for better accounting and internal controls.
Ward also gives credit to Utah lawmakers.
During the 2005 legislative session, lawmakers made technical changes, and adjusted the revenue and taxation code to conform with federal tax law.
Ward, a certified public accountant, was director of the Office of Budget and Planning under former Gov. Mike Leavitt. Then she served as former Gov. Olene Walker's Chief of Staff.
Under Ward's brief UESP tenure, the plan also has earned national recognition. In February, Morningstar, an investment research firm, rated Utah's college-savings plan as one of the country's best. Earlier this month, Kiplinger, a personal-finance advice publication, reported it "has consistently recommended Utah's plan" due to its low administrative fees and investment options.
The continuing growth and national kudos suggest that Utah's college-savings plan was not adversely affected by the fallout from the firing of UESP's former director, Dale Hatch.
On May 13, Hatch - having pleaded guilty to transferring $85,000 from the plan into his personal account - was sentenced to 30 das in jail; ordered to counseling, restitution and 100 hours of community service; and was given a $500 fine.
sykes@sltrib.com
