CA SB292

Establishes the Education Savings Account (ESA) program allowing eligible K-12 students to receive annual deposits (starting at $17,000 in 2025-26 school year) to pay for tuition and education expenses at eligible private, charter, religious, and vocational schools, as well as community colleges and universities.

Limits initial eligibility by income for first four school years: years 1-2 for families earning under $50,000 (single) or $100,000 (dual filers); years 3-4 for families earning under $100,000 (single) or $200,000 (dual filers); then removes all income limits.

Caps remaining ESA balances at $60,000 per student after high school graduation for use toward college or vocational education expenses, with annual inflation adjustments.

Requires the Department of Finance to determine annual ESA deposit amounts based on changes to school district funding formulas under Proposition 98, with funds transferred from the General Fund to the ESA Trust.

Excludes ESA distributions from state gross income for tax purposes starting January 1, 2025, and becomes operative only if Senate Constitutional Amendment 5 (2023-24) is approved by voters on November 5, 2024.