Public Media from Michigan State University

State Asking Whether College Plans Can Cover K-12 Tuition

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Gov. Rick Snyder is checking on the legality of allowing Michigan's 529 college savings plans to be used to cover private K-12 tuition costs.

The federal tax cut enacted last year includes the expansion of eligible expenses for such savings plans, so private K-12 tuition is included. But the Michigan Constitution prohibits direct or indirect public aid to any non-public school.

Snyder and state Treasurer Nick Khouri sent a letter Friday to state Attorney General Bill Schuette (SHOO'-tee) asking for a legal opinion.

Contributions to the Michigan Education Savings Program are deductible for state income tax purposes, and investment earnings and withdrawals are not taxed.

Snyder says he requested Schuette's "prompt review of this issue to provide clarity to Michigan residents and ensure the expansion does not violate state law."

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