LITTLE ROCK, Ark. (AP) - Arkansas lawmakers have stripped a proposal to allow 529 college savings funds to be withdrawn for public, private and religious K-12 expenses from the state treasurer's budget after a dispute over the change had stalled the measure.
The House on Thursday approved the budget for the state treasurer by an 84-3 vote after the college savings provision was removed. The bill had failed twice previously in the House this week over objections to the savings provision.
The bill now heads to the Senate.
Supporters said the college savings provision was needed to mirror a change in federal law and ensure Arkansans don't face a state tax penalty if they withdraw funds for K-12 expenses. Legislative leaders said they expected the proposal to come up during next week's special session.
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