<HTML dir=ltr><HEAD> <META http-equiv=Content-Type content="text/html; charset=unicode"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <DIV><FONT face=Arial color=#000000 size=2> <P class=MsoNormal><B><I><SPAN style="FONT-SIZE: 14pt">FOR IMMEDIATE RELEASE</SPAN></I></B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</P> <P class=MsoNormal><B><I><SPAN style="FONT-SIZE: 14pt">January 2, 200</SPAN></I></B><B><I><SPAN style="FONT-SIZE: 14pt">9</SPAN></I></B>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P> <P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN style="FONT-SIZE: 10pt; COLOR: black"></SPAN>&nbsp;</P> <P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN style="FONT-SIZE: 10pt; COLOR: black"></SPAN>&nbsp;</P> <P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN style="FONT-SIZE: 10pt; COLOR: black"></SPAN>&nbsp;</P> <P class=MsoNormal style="TEXT-ALIGN: center" align=center><SPAN style="FONT-SIZE: 14pt; COLOR: black">COURTNEY, WESTLUND TO PROPOSE PREPAID TUITION PLAN</SPAN></P> <P class=MsoNormal style="TEXT-ALIGN: center" align=center><I><SPAN style="FONT-SIZE: 14pt; COLOR: black">College Savings, with a Guarantee</SPAN></I></P> <P class=MsoNormal><SPAN style="FONT-SIZE: 10pt; COLOR: black">Contact:</SPAN><SPAN style="FONT-SIZE: 10pt; COLOR: black">James Sinks, Office of the State Treasurer, 503-508-0737 (cell)</SPAN></P> <P class=MsoNormal><SPAN style="FONT-SIZE: 10pt; COLOR: black"></SPAN><SPAN style="FONT-SIZE: 10pt; COLOR: black">Phil Bentley, Senate President&#8217;s Office, 503-780-3690 (cell)</SPAN></P> <P class=MsoNormal><SPAN style="COLOR: black">SALEM &#8211; </SPAN><SPAN style="COLOR: black">Treasurer-elect Ben Westlund and Senate President Peter Courtney, D-Salem, on Friday announced that they will work together to bring Oregon families an additional way to save money to send their children and grandchildren to college &#8211; and in a way that won&#8217;t be subject to fluctuations in the stock market.</SPAN></P> <P class=MsoNormal><SPAN style="COLOR: black">In the upcoming 2009 session, Westlund and Courtney will propose creation of a pre-paid college tuition plan as a new option in the Oregon College Savings Plan, the state&#8217;s existing 529 plan </SPAN></P> <P class=MsoNormal>Prepaid tuition allows parents to purchase college classes for their children based on today's rates, for future use. And because the plan would be included under the same framework and tax laws as the existing 529 plan, parents and grandparents who invest in the future education of their children and grandchildren would be eligible for Oregon income tax deductions up to $4,000 a year.<SPAN style="COLOR: black"></SPAN></P> <P class=MsoNormal>&#8220;Prepaid tuition will provide families with a new way to <SPAN style="COLOR: black">save for their children&#8217;s education,&#8221; said Westlund.&nbsp; &#8220;Access to an affordable college education is essential to the economic future of our children and our state.&#8221; </SPAN></P> <P class=MsoNormal>"Education equals opportunity. There is no greater investment parents can make than a college education for their children," said Courtney, who sponsored a bill in 1997 that would have created a prepaid tuition plan and was a chief cosponsor in 1999 of the legislation that created the existing college savings plan.&nbsp; "Unfortunately, saving for college is one of the biggest challenges parents face<SPAN style="COLOR: black">.&#8221;</SPAN></P> <P class=MsoNormal>Under the proposed legislation, parents could lock in tuition rates, pay in advance for their child's education over a period of years, and experience a significant overall savings when compared to the probable increase in tuition costs.</P> <P class=MsoNormal>Prepaid tuition plans first became available in the 1980s and are available in a number of other states, including Washington State. Addition of a prepaid plan will enhance the Oregon College Savings Plan with a new, complementary option. Parents will be able to save for tuition costs with a prepaid plan and, at the same time, invest for other education costs such as textbooks, room and board under the existing savings plan.</P> <P class=MsoNormal>The prepaid tuition plan could be used to cover tuition at Oregon colleges, or the accumulated assets could be transferred to an out-of-state college.</P> <P class=MsoNormal>"We need to do more today to help families prepare for tomorrow, and allowing them to buy actual college credits in advance not only saves them money but helps parents create a solid expectation that their child will attend college,&#8221; Westlund said.</P> <P class=MsoNormal>"In our uncertain economic times, prepaid tuition gives parents a guarantee that their investment now in their child's college education will be there when their child enters college in the future," Courtney said.</P> <P class=MsoNormal>Westlund will officially take the oath of office and become Oregon's 26th Treasurer at 1 p.m. Monday. The 75th Oregon Legislative Assembly convenes January 12.</P> <P class=MsoNormal><SPAN style="COLOR: black"></SPAN>&nbsp;</P> <P class=MsoNormal style="TEXT-ALIGN: center" align=center><B>###</B></P></FONT></DIV></BODY></HTML>