California Bill Would Give All State's Newborns a $500 Savings Account

I live in Ohio so I'm not directly affected by how California politicians decide to spend the money they confiscate from their citizens. Having said that, this article brings up several concerns. Here is the basic overview of the proposed program:

Every child born in California would get a $500 savings account to start building a nest egg for college or a down payment for a home, under a state Senate bill introduced Wednesday. .... If families added $50 a month to the state's initial contribution, the savings account would grow to nearly $17,500 at 5 percent interest over 18 years.

At first glance, it looks like a good idea that encourages saving for college, retirement, etc.

They included a provision that should appeal to folks who don't want to see additional government handouts:

Recipients would have to repay the state's initial $500 investment once they turn 18.

Not sure that I'd count on the money being repaid, but whatever.

The biggest problem with this proposal is this little tidbit:

Under the bill, every child born in California after Jan. 1, 2008, would receive the money, regardless of their parents' income or immigration status.

For most of us $500 would not be reason to sneak into another country, but to an impoverished family in Mexico this will serve as one more inducement to invade our country. For that reason alone I have to come down against this idea.