State Treasurer David McRae told the Joint Senate and House Universities and Colleges Committee on Dec. 12 that Mississippi's college-savings programs have moved from troubling funding levels to healthy reserves following legislative changes to investments and increased outreach.

McRae said the older legacy prepaid plan was approximately 72% funded when he took office and climbed to full funding under his administration; the newer Horizon prepaid option is now funded at roughly 140%. He credited a combination of a revised investment structure approved by the Legislature and proactive subscriber outreach, including event-based enrollment at athletic and extracurricular competitions.

"We changed the investment structure, and the Legislature took a chance on us," McRae said during his presentation. He also highlighted staff work and named the program director by name, saying the team prioritized customer service and enrollment drives.

McRae provided enrollment counts for the state's options: about 23,214 accounts in the non-prepaid Max plan; roughly 7,817 remaining members in the legacy impact program (being phased out as subscribers use benefits); and about 3,001 members in the Horizon plan that is open to new enrollments. He described the Max plan as flexible — able to cover tuition, room and board, books and other student needs — while the prepaid impact plan pays tuition and certain fees.

The treasurer said federal tax-policy changes in 2017 broadened allowable uses for 529 funds, enabling families to use accounts for community college, apprenticeships and certain workforce training, and he argued that has helped drive enrollment patterns. He noted expanded payment options for families, including acceptance of debit cards and digital payment services to make contributions and purchases more convenient.

Committee members asked how the prepaid checks are disbursed and whether students can use multiple plans; McRae confirmed checks for the prepaid plan cover tuition and said families can subscribe to both plans if they can afford it. He also said the treasury relies on actuaries to price different population cohorts and that outreach is prioritized to regions with lower participation.

The treasurer emphasized his fiduciary duty to subscribers and said the treasury's approach aims to minimize subscriber risk while keeping the program accessible. He offered to provide additional details and take committee questions after the hearing.

The committee did not take a vote on any statutory changes during the presentation; follow-up requests included more detail on regional enrollment and program actuarial assumptions.