Within the next five years, economic forecasters estimate that upwards of 70% of jobs in the Chattanooga region will require some kind of post-secondary credential.
At the moment, fewer than 60% of Hamilton County Schools are pursuing any form of higher education and fewer still are finishing on time.
Closing that gap is one of the main goals of the Chattanooga Future Fund, announced by Chattanooga 2.0 and a consortium of local funding partners.
Beginning January 23, every kindergarten and middle school student in Hamilton County Schools is eligible to receive $150 in a career and college savings account, which is then meant to be supported with additional contributions by family members, loved ones, community members, local businesses, churches and civic organizations, and even students themselves.
Upon graduation, a student is free to use the money in his or her account for college tuition, certifications in the trades; technical training, or education-related costs like housing, technology, and transportation
.The program, the first of its kind in Tennessee, is projected to impact 40,000 students over its five-year pilot. Chattanooga 2.0 estimates that over the course of their lifetimes, the increased education and training that they will receive could boost their collective earnings by $750 million to $1 billion.
“Our mission at Hamilton County Schools is to ensure that every student is prepared for success in college, career, and life. The Chattanooga Future Fund is a direct investment by the community in our students that will advance that mission in hugely significant ways,” said Dr. Justin Robertson, Superintendent of Hamilton County Schools. “Closing the gap between today’s post-secondary enrollment numbers and the sophisticated workforce needs of tomorrow’s economy has to be an all-hands-on-deck effort for this community. That’s why the Chattanooga Future Fund is so important.”
Another program that some families could use to help their savings grow further is the Tennessee Investments Preparing Scholars (TIPS) program. When a qualifying family establishes a TNStars College Savings 529 account and enrolls a child 14 years or younger in the TIPS program, the state will provide a four-to-one matching contribution.
Eligible children can receive up to $500 per year with a lifetime maximum match of $1,500. The matching contributions from TIPS are another way to bring higher education and career training within reach of even more families. Both TIPS and TNStars are programs of the Tennessee Department of Treasury.
“Every dollar saved for a child’s future can advance them throughout their lives. When children get help saving at a young age, they tend to save more money and build wealth at greater rates throughout their lifetimes, said State Treasurer David H. Lillard, Jr. “The Chattanooga Future Fund and the TIPS program will amplify individual families’ savings efforts, turning modest savings into substantial opportunities.”
“The Chattanooga Future Fund gives every local family a practical and easy way to save and invest in their children’s futures, starting right now,” says Mayor Tim Kelly. “The Chattanooga Future Fund earned our support because it aligns perfectly in so many ways with the vision of our One Chattanooga plan. Part of our mission is to create pathways to the middle class for every family, and increasing access to college and career training is crucial in that work.”
The Chattanooga Future Fund is a novel vehicle for companies and individuals to invest in Hamilton County students,” said Hamilton County Mayor Weston Wamp. “By supporting post-secondary pathways from technical certifications to college degrees, we’re empowering students to pursue rewarding careers and become productive citizens.”
“Other cities that have these kinds of college and career savings accounts have shown that even modest amounts of financial support significantly boost a student’s chances of successfully pursuing education or training after high school,” says Dr. Keri Randolph, Executive Director of Chattanooga 2.0, which is administering the program in partnership with Pinnacle Bank. “Our kids deserve to know that their dreams matter and that we’ll do whatever we can to help them thrive in the future.”
The Chattanooga Future Fund’s five-year, $7.5 million pilot is supported by the City of Chattanooga, Hamilton County Government, Pinnacle Bank, the Benwood Foundation, the Maclellan Foundations, the Bobby Stone Foundation, the BlueCross BlueShield of Tennessee Foundation, and the Community Foundation of Greater Chattanooga.
“At BlueCross, we believe in investing in the future of the communities we serve, and one way we do that is by supporting education-focused programs like the Chattanooga Future Fund,” said JD Hickey, President and CEO of BlueCross BlueShield of Tennessee. “By partnering with the fund, our foundation is championing tomorrow’s leaders, helping them access opportunities and reach their full potential.”
Parents or guardians who wish to claim their child’s Chattanooga Future Fund account or want more information are encouraged to visit ChattanoogaFutureFund.org or email FutureFund@chatt2.org.