Just last week it looked like a balk on the part of higher ed would kill any funding solution for the PACT program this session -- which would effectively kill the program. Today there may be new hope springing from a different PACT funding mechanism proposed by Rep. Robert Bentley (R, HD-63) -- somewhere we have a video clip of Bentley talking about this plan, but I can't readily lay my hands on it found it, see below the fold. His bill, HB775, passed out of the House Education Appropriations Committee today on a unanimous vote.
His proposal would use the money in Alabama's Prepaid Affordable College Tuition plan to invest in an annuity-like product that pays a fixed return for 20 years. The difference between the return and the amount needed for tuition each year would be borrowed from a state savings account called the Alabama Trust Fund. After about 10 years, the annuity's payment should exceed the tuition costs and could be used to start repaying the loan. The state government would cover any shortfall.
Word is that both higher ed and AEA can get behind this solution. In addition to HB775, Save Our PACT is still lobbying hard for passage of SB162 which should hit the House next week.
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