Implementation Steps and Conclusion
Implementation Steps
To implement a baby bonds program in Georgia, several practical steps need consideration. First, the state would need to establish a Georgia Baby Bonds Trust Fund through legislation that defines the program’s parameters (eligibility, contribution schedule, allowable uses of funds, and administrative authority). HB 284 and HR 99 already lay the groundwork, proposing a constitutional trust fund to protect the funds. The program could be administered by a state agency like the Office of the State Treasurer to manage the investments.
One advantage is that verifying eligibility is straightforward if tied to existing programs like Medicaid or other safety net programs administered by the Georgia Department of Human Services. The state can automatically enroll every Medicaid-born child, and if universal base deposits are included, every birth can be registered via birth certificate records. The funds would be invested likely in a diversified portfolio (much like the state’s pension fund or 529 college savings plan49 ) to earn returns above inflation. Over 18 years or more, even conservative investments could roughly double the initial principal (as assumed 5 percent growth in our estimates).
Conclusion
Georgia stands at a crossroads: we can either accept the status quo of widening wealth inequality – with all the social and economic costs it entails – or we can boldly invest in a future of broadly shared prosperity. Baby Bonds offer a practical, forward-looking strategy to do the latter. By investing modestly now in every Georgia child’s future, we reap a more secure and thriving state later. The economic case is compelling. Closing the racial and rural-urban wealth divide would boost Georgia’s GDP and expand the state’s tax base. Wealth inequality is a policy choice. It has been created (or at least permitted) by collective policy decisions over time. Georgia can choose a different path by enacting baby bonds, signaling that we value every child’s potential.
In crafting baby bonds legislation, Georgia’s leaders should ensure the program is universal, inclusive, and adequately funded to make a difference. The recommendation of this report is to implement a universal-with-progressivity baby bonds program: provide a base trust for all newborns and larger contributions for those from low-wealth families. This design maximizes political viability and equity. Funding should be secured through a sustainable mechanism – for example, dedicate a fraction of annual surplus revenues or close a special interest tax loophole to fund the trust. Over time, as the program proves its worth, it could be expanded or adjusted, and perhaps federal support might augment it if a national program comes to fruition.
A statewide baby bonds policy is an investment in our collective future that we cannot afford to pass up. The time to act is now, so that every child born tomorrow in the Peach State will one day take part in Georgia’s prosperity as an owner, investor, or entrepreneur.
