Alabama PACT Board to Seek Help from Legislature
Countrycat has the preliminary report from the Alabama Prepaid Affordable College Tuition board meeting in Montgomery today. A large crowd of PACT contract holders attended the meeting.
The board unanimously rejected dissolving the program. The plan is to keep the program with modifications.
“These include: close enrollment (no new contracts until current contract holders are secure); take $1.3 million from a state scholarship fund to help secure PACT (I’ll have to look up the details on this); and ask for legislative assistance with funding.”
Lt. Governor Jim Folsom Jr. stated unequivocally that PACT is going to survive, and that the legislature will fix the problem.
Callan Associates spent several hours presenting information about the state of the investments, including the annual actuarial report and auditor’s report. According to Callan, the program’s actuarial deficit is now $481.3 million. In September of last year, it was $306.2 million, up from only $19.7 million in September, 2007.
State Treasurer of Kay Ivey attempted to insist that the board be given authority to dissolve the program (currently only the Legislature has that authority). The other board members and the crowd hated that idea, but she was persistent. Video of that exchange to come.
Further details at the link; I'll post more information as soon as it is available.