As many PACT parents and students feared, the "rescue plan" concocted by the Legislature this spring is already in trouble. I can't help but wonder what the chances are that the Legislature (and citizens without PACT contracts) will be willing to revisit the issue - and perhaps allot more money - in future sessions.
When I wrote about the PACT rescue in April, I was concerned that the plan had problems. But, with a daughter starting college in 2 years, I had my fingers crossed that things would be ok.
They're not.
The glaring deficiencies in the rescue plan are already causing problems:
The rescue bill treated higher ed institutions in Alabama unequally, capping tuition for PACT students at non-UA and Auburn universities but paying the full amount to the UA and Auburn systems.
The unseverability clause in the bill means that if the tuition caps are struck down by the courts then the whole bill is scrapped. Generally, bills are passed with the caveat that if any portion of the bill is found unconstitutional, that doesn't affect the other provisions of the bill. And yet, AEA and its legislative allies insisted on the unseverability clause. Brian at Flashpoint wrote about the issue, wondering if it was a deliberate poison pill.
The bill did nothing to address rising tuition costs and in fact made the totally unrealistic assumption that tuition at UA and Auburn wouldn't rise more than 7.5% per year.
More about those tuition increases on the flip - along with the PACT actuarial consultant's warning that double-digit increases threaten the solvency of the program. Again.
Democratic candidate for Treasurer, Jeremy Sherer, picked up the endorsement of the "Daily Home," a local paper covering St. Clair and Talladega Counties:
Sherer’s ideas coalesce into a picture of a forward-thinking state treasurer who will look for unconventional solutions to existing problems. He’s part of a new generation of politicians in Alabama, and it’s about time.
And no... nobody from Left in Alabama wrote that editorial - even though it's what many of us here have been saying for a long time! Here's more:
Do not mistake Sherer’s lack of experience for inability. In this race, he has identified four areas of responsibility among the many the treasurer must address, and his ideas are impressive.
He plans to make sure that all state treasury money held in banks is deposited in sound Alabama-based institutions that actively lend within their communities. He claims that at present millions of state tax dollars are deposited in out-of-state banks that have been cited for discriminatory lending practices.
Sherer wants to improve the availability of small bank loans to average Alabamians and reduce the dependence on pawn shops and payday lenders. He says he will work with the attorney general and the Legislature to protect families from predatory lending practices. Part of this initiative, he says, would be to improve financial literacy among the state’s residents.
He offers no simple solution to the PACT dilemma, recognizing that even with the bailout passed this spring, PACT will be an ongoing problem.
Finally, Sherer proposes to make the state’s financial holdings, expenditures and investments available for public examination by putting them online.
"A new generation of politicians" with impressive ideas and one that's not afraid to say that our problems have no simple solutions. And yet, the support he's getting from many of the old guard Democratic Party politicians and institutions is tepid at best.
Young leaders like Jeremy Sherer are the future and the hope of the Alabama Democratic Party. Let's hope that our Democratic Party primary voters realize that next Tuesday.
It should come as no surprise to anyone that Alabama's government is dysfunctional. Various interest groups fight each other over pieces of what seems to be an ever-shrinking pie. And nowhere is that battle more intense than between the groups associated with K-12 - mainly the Alabama Education Association (AEA) and those allied with higher education - Alabama's college and university system.
Many citizens - including Congressman Artur Davis - have long held that this is a false choice. Instead of pitting the two groups against each other, it makes more sense to view education as a single unit - from Kindergarten to college or career education/technical training.
"A governor can do something to bring people together instead of being a person who picks on faction over another. I want to have a strong relationship with the universities in all their forms: the 2-years, the 4-year universities, the HBCUs, and the independent colleges.
We're going to get our next big economic gains in this state from partnerships with schools in our higher education system. If you look at North Carolina, they have created all kinds of partnerships with higher education and it's led to stronger workforce development. It also has led to a stronger K through 12 component. Because stronger higher education pushes K through 12 to be more competitive and do better.
That's why, once again, this artificial choice between K-12 and higher education is destructive to the kind of workforce we want to build. "
That's how it should be. First let's discuss how it is and how the PACT rescue almost failed due to the conflict.
PACT contract holders breathed a huge sigh of relief last night when both the Alabama House and Senate passed a conference committee bill to use money from the Education Trust Fund to help the program.
The key point of contention between the House and Senate was the inclusion of tuition caps for PACT contract holders. The House bill set a cap of 2.5% per year on tuition increases. The Senate bill had no tuition caps.
The compromise bill, hammered out this weekend, splits the difference. Regional colleges and universities will have tuition capped for PACT contract holders while schools in the University of Alabama and Auburn systems will have no tuition caps.
Bob Hill, University of North Alabama government relations director and legal counsel, said he believes the bill is unconstitutional. Hill said the bill discriminates against regional institutions and students who must absorb tuition costs of PACT students.
"Regional schools are always squeezed in between K-12 on one side and doctoral schools on the other," he said.
More about the good and bad in the bill - and a bit of discussion on the systemic issues not addressed by the Legislature or others involved in the process.
Less than a year after we learned that Auburn's trustees and administration (and family members) spent almost $500,000 flitting about the country on private jets, we have this news about a second tuition increase in a year:
The board voted unanimously to raise the rate charged per credit hour of classes from $258 to $292 for up to 12 credit hours. The cost of tuition and some fees for an in-state student taking 12 hours of classes will increase from $3,462 to $3,950 -- about 14 percent.
And, in a stunning display of spin, it's supposed to save students money!
But the board also voted to eliminate additional tuition for extra classes. Under the old system, students paid $258 per credit hour for up to 10 credit hours, and could take an additional five credit hours for free before incurring more charges.
Trustee Bobby Lowder said the idea is to encourage students to take a heavier class load and graduate sooner. If they do so, they'll save money in the long run, he said.
"It saves a family a lot of money," Lowder said.
This may be true for the student who is able to load up on as many classes as possible. But what about the many students who have to work as many hours as possible to make ends meet? Or the students taking high-level difficult courses who need more study time and want to keep their grades up for grad school or scholarship opportunities?
I heartily agree that any university should encourage students to graduate within 4 years, but the way to do that is through counseling and guidance. Lowder's explanation that this will "help" anybody but the university is just laughable.
In addition, the Huntsville Times has an article in the print edition by Stan Diel of the Birmingham News (can't find the story online), that Auburn is considering expanding into China!
"...the trustees voted to study the possibility of building a campus in Danyang, China.
[...]
"...establishing a campus there would help Auburn attract Chinese students and build its alumni base."
Yep. That's just what we need: attract Chinese students because Alabama PACT contract holders and other students have been priced out of the market.
On the bright side, it would give the trustees somewhere else to visit in those private jets!
Democratic candidate for Treasurer, Jeremy Sherer, is offering a possible solution to the growing legislative impasse over bills to save Alabama's Prepaid Affordable College Tuition Program (PACT): the state's unclaimed property fund.
As I noted yesterday, the house-passed bill (HB228) has run into the immovable force that is Rules Committee Chair, Lowell Barron.
Barron objects to the tuition caps for PACT students that are included in the bill and won't allow a Senate vote on any bill that includes caps.
In response to a question about where the money will come from to pay tuition contracts, Sherer suggested that his solution - tapping the state's unclaimed property fund - is the most fair and least painful way to implement a short-term solution while the economy recovers - hopefully soon!
In an interview this week, Sherer stressed the importance of honoring PACT contracts:
PACT was flawed at its inception, due to its lack of tuition controls and lack of oversight from the Legislature. Ultimately, Alabama will spend millions of dollars due to the flawed structure of PACT, which resembled that of a pyramid scheme.
The priority of state leaders now must be to maintain control of PACT's fate and its own legal liability by guaranteeing PACT contracts, and keeping PACT's fate within the Legislature and out of the courtroom.
More information about how Shere's proposed solution worked in Kentucky and more remarks from him on the flip.
Fall 2011 could be the end of PACT, says this disturbing headline from the AP:
Administrators of Alabama's prepaid college tuition plan say it can't pay tuition after the fall semester of 2011 and still have enough money to provide refunds to the 44,000 participants.
[...]
Emfinger and Story said that shows the need for the Legislature to address the program's problems in the current session. The Senate and House have passed separate bills to shore up the program with $236 million, but they can't agree on whether to include a cap on tuition increases.
That has to be a desperation shot across the bow of the legislature. The tuition cap increase is key to the bill's passage or failure.
The university system folks are vehemently - if not violently - opposed to any plan that includes tuition caps. Senator (and Rules Committee Chair) Lowell Barron told Save Alabama PACT that he won't allow a vote on the House bill if the caps are in place. While the AEA will withdraw its support if the tuition caps are removed.
The fate of 45,000 current and future college students is between a Hubbert/Hubbard and a hard place. With a little slice of Barron on top for decoration.
With this mass of motivated, out for blood families and voters looking for a solution, wouldn't you think there could at least be a vote. Lowell Barron is my senator and this is just another in a long line of disappointments.
The legislative session is 2/3's over. tick, tock....
Who would believe that it was just a year ago that Alabama Treasurer (and candidate for governor), Kay Ivey, was touting Alabama's Affordable Prepaid College Tuition (PACT) program and encouraging parents and grandparents to invest?
Using her "folksy charm," Ivey told the Andalusia Chamber of Commerce banquet that they needed to buy more PACT contracts!
“There are 160 students in Covington County enrolled in the PACT program,” Ivey said. “Y’all have got mo’ chil’en than that,” she said, asking those present to encourage parents and grandparents to participate in the program.
What's happened to those "chill'en" enrolled in the program since then isn't so charming.
So, in honor of Cowgirl Kay Ivey, here's a recap of the PACT program's history. Take a look and see if you agree with my assessment that Ivey and the PACT board are either totally delusional or just flat out lying when they blame the whole problem on the stock market fall.
Former Democrat and GOP candidate for governor, Bradley Byrne, is widely considered to be the frontrunner for the nomination. (Danny at the Political Parlor says: "Favorite of the state's GOP establishment is still the one to beat.")
Yet Byrne has found himself pretty much beaten by the news cycle this week. What's amazing is how self-inflicted the wounds are. From PACT to the Bible, Mr. Byrne seems to be having trouble choosing a position and sticking with it.
Furthermore, he's proving to be a candidate who's not just full of what King Cockfight calls "gentle Caucasian charm," but a comparatively thinskinned one too. You have to wonder how he'll stand up under the pressures of a hard-fought primary and/or general election.
It's been pretty amazing to watch Byrne pull off a political hat trick and alienate these three important constituencies... all in one week:
Approximately 45,000 PACT contract holders, their families, and friends.
The Biblical inerrancy crowd that seems to form the base of Alabama's Republican Party.
His own hometown paper - the Mobile Press-Register.
Just how committed is former PACT board member Bradley Byrne to the Prepaid Affordable College Tuition program? How committed is present Treasurer Kay Ivey? (ASK HER! She's hosting the Dale Jackson show on WVNN in Athens (92.5 FM - 1-866-494-WVNN) from 6-9am tomorrow morning!)
Mooncat asked this question when she blogged about Byrne's contention that a "moral obligation" is "more important" than a legal obligation. Oh really? Hey, I can't wait to go to court and ask the judge to enforce someone's "moral obligation" to me. How about you?
Now, other candidates for governor and other statewide offices are asking the question that many PACT contract holders asked when they saw Byrne's comment:
"Just how committed is Byrne to PACT? If there's no legal obligation, what recourse to contract holders have? Are they to be dependent solely on Byrne's good will if he's elected governor?"
“The recent actuarial study conducted by the Retirements System of Alabama found that Alabama had a legal obligation to honor all PACT contracts. Further the RSA reported that any compromise of PACT contractual benefits would amount to a breach of contract, resulting in litigation that the State of Alabama would likely lose. I share RSA’s opinion, and believe that today’s decision by the PACT Board is a step backwards in solving PACT”.
Alabamians need to know we can trust our government. Bradley Byrne, show that you understand our legal responsibility to uphold Alabama's promise to the 48,000 families whose children need PACT money for college.
Byrne will no doubt try to write off this effort as "politics," but it's "politics" that's going to resolve this issue. His statements about "no legal obligation" call his support of PACT into doubt and he shouldn't whine when people criticize him for it.
Davis' press release is on the flip. Ron Sparks hasn't issued a statement, but his speech to the Save Alabama PACT group in August had a succinct, "veni vidi vici" rythm to it:
"You paid for it. You ought to get it. It's that simple."
(Great catch, Lawdog! Jeremy Sherer is just one of our great young Democratic candidates this year. - promoted by countrycat)
Here is a link to a story that aired on WHNT last night featuring the reaction of Jeremy Sherer to the "thief in the night" Alabama PACT deal that recently was approved by the PACT board:
Here is the Link: http://www.whnt.com/videobeta/watch/?watch=faf052c9-8aaf-489b-b5ab-5a91c32e1a03&src=front
note: a transcription is on the flip for those who can't get the link to work.
In it, Sherer points out what we at LIA and other blogs have been saying for a long time. This isn't "just" a stock market issue. The PACT board didn't adequately manage the program and the stock market is their excuse.
Sure would be nice to read that from Alabama newspapers, the AP (I'm looking at you, Phillip Rawls!), or TV stations. With the exception of Bob Lowry, most have just re-written Kay Ivey's press releases and called it "reporting." Glad to see that WHNT is giving some coverage to it and to Sherer.
Under Kay Ivey's "leadership," the Alabama PACT Board met today for a "special" meeting at 8am in Montgomery. The Alabama PACT Board voted to change the terms of every existing PACT contract in a way that will cost the average university student at least an extra $500/semester beginning in the fall of 2010.
Under Kay Ivey's "leadership," this change was made with no notice to the PACT parents and students, no notice to the press, and no notice to those candidates running for governor and state treasurer.
This is the "leadership" and committment to transparency that Treasurer Kay Ivey promises to bring to the state if she's elected governor. Or, if you prefer... it's PACT 2.0: Piss Away Citzens' Trust in Alabama's government and institutions."
There are so many things to criticize about this that it's hard to pick just a couple, but let's hit the high points first:
The meeting notice wasn't posted on the Alabama PACT Web site. It's there now. It wasn't yesterday. And you'll LOVE the reason Cowgirl Kay Ivey gave for that...
This important meeting was held between the Christmas and New Years' holidays when most folks are on vacation or relaxing with the family.
At least one PACT board member didn't know about the meeting as late as last night.
Inexplicably, the PACT board voted to change the terms of the PACT contracts - in such a way that immediately gives hundreds, if not thousands, of PACT contract holders standing to sue the PACT board for breach of contract. 'course, they probably aren't worried for themselves. Remember, they bought themselves liability insurance (paid for out of the PACT operating funds) in 2004.
All this is brought to you by Cowgirl Kay Ivey, who promises to do for the State of Alabama what the did for the Prepaid Affordable College Tuition program. Note that first word in that title: PREPAID.
In Kay Ivey's view, that is just another example of her committment to "transparency in government." It fades away over time until it means absolutely nothing.
Stay tuned. On the flip, we'll cover the following:
How the meeting was called.
What happened.
How this changes the equation.
Why take this action now?
Read more and learn why Kay Ivey has just proved that she's the best example available of the worst in Alabama politics.
"I am pleased that after more than a month from when State Representative Greg Wren’s proposed legislation guaranteeing PACT contracts was first released that Treasurer Ivey has decided to support the 45,000 PACT families that the proposed legislation protects”.
“Treasurer Ivey’s additional statement, regarding the apportionment of PACT funds among colleges and universities for their reserving of enrollment for PACT students, lacks substance. Ivey’s proposal relies on the altruism and generosity of universities to assume the full financial burden caused by PACT’s mismanagement under Ivey’s administration. In no way do Ivey’s proposals provide any financial solution for PACT, it merely passes the buck.”
I'm with Sherer on this one. Instead of calling the plan her "Kay Ivey Partnership for PACT" it would be more descriptive to call it "Kay Ivey Punts PACT." (Who names stuff after themselves anyway?)
Just who is she planning to "partner" with anyway? Most of Alabama's colleges and universities have shown absolutely no inclination to work with Save Alabama PACT, the Treasurer's office, or the Legislature.
In fact, University of Alabama officials have flatly told Save Alabama PACT leaders that they "don't care" if they lose PACT students becuase those slots could be filled by students from out of state who bring in more revenue.
However, Ivey acknowledged the universities and colleges could not be forced to go along with the proposal. "There is no forcing anybody," Ivey said. Ivey said she hoped the universities and colleges would be wiling to discuss her ideas.
Unless she's totally delusional, Ivey has to know that this proposal is dead on arrival at Alabama universities. Even her proposed bribe of the ever-dwindling PACT money won't be enough.
At the Save Alabama PACT meeting last Wednesday (11/4) after the PACT board meeting, Treasurer Kay Ivey faced tough questioning from parents about why the PACT board sat for 7 months in 2008 and watched the fund ride the stock market all the way to the bottom.
The parents' anger and disappointment wasn't a surprise, but Ivey seemed completely unprepared for the tough questioning. And it's no wonder: the Alabama media has pretty much given her a pass. I haven't seen a single interview or news report that asks the tough questions or confronts Ivey's version of PACT fantasyland.
Instead, it's left to parents to state the obvious:
"When you lose 50% of a fund, you've lost a heck of a lot of money and most of us were smart enough to go: 'Hey! I'm going to stop this bleeding. I'm going to get me a band-aid and put it in a money market.'
But we went seven more months like that with your board of directors. We need somebody who's accountable for that money before the seven months goes by."
The media hasn't asked the hard questions; they've left it up to parents to ask. They didn't even stay for the entire meeting; just skedaddled off to dinner and deadlines. Wouldn't it be cool to have a reporter from the Birmingham News pursue the PACT board with the same zeal as they have other elected officials?
The PACT board - particularly Kay Ivey - tries to deflect these questions and blame the stock market, blame the economy, blame anybody or anything except their own mismanagement. They want us to look to the "future" and to "solutions." Yep.
We need solutions, but it's hard to solve a problem when you don't have a firm handle on what caused it. And it's even more difficult when the people in charge don't seem to want the whole story to become public.
Why the tapdancing Kay? If nobody did anything wrong, then there's no reason to block Davis, Sparks, Sherer, an others' calls for a full audit. Unless, of course, you're afraid that accountability in the PACT program might uncover some uncomfortable truths about your role in the meltdown.
Video of the parent takedown of Ivey is on the flip. It's well worth the 2 minutes to see concerned citizens angry about real issues that affect the state and their children. But not just angry: demanding real answers and not doubletalk from their representatives.
After the PACT board's March 24 board meeting, Congressman Artur Davis rebuked the board for its poor performance and called for a special program audit:
I would also renew my call for a special audit that answers the hard questions of how Alabama families were left in this predicament.
In a press release today, Agriculture Commissioner Ron Sparks upped the ante with a call for a "forensic audit" of the PACT program.
"I am calling for a full forensic audit of the PACT investment program," Ron Sparks said. "If people unlawfully made money off the backs of thousands of Alabama families who invested in the PACT program, it's time to go get our money back."
Now, many people (including me!) have alleged that the Prepaid Affordable College Tuition program lost money money due to the incompetence of the investment managers and oversight failure of the PACT board. But this is the first time I've heard any allegations of deliberate criminal activity.
Alabama Treasurer candidate, Jeremy Sherer, warns against using criminal investigations "as a political tool," but agrees that a forensic audit is a good idea - as is an investigation should the facts warrant one:
We've seen too much of that in our politics. Alabama legal authorities should constantly operate in a state of due diligence to prevent abuse of power and corruption. However, if any information of substance is derived from the SEC investigation that might relate to PACT financial operations, state authorities most certainly should investigate any potential wrong-doing.
More about this issue on the flip - including my personal impressions of Mr. Huff from seeing him in action at PACT Board meetings.
Alabama's troubled Prepaid Affordable College Tuition board met yesterday to discuss the health of the program, review investments, and discuss working with the Alabama Legislature to fix the program.
Immediately following the meeting, members of Save Alabama PACT met to plot strategy and hear from Lt. Governor Folsom, Treasurer Kay Ivey, and the three announced candidates for Treasurer: Jeremy Sherer (D), Charles Grimsley (D) no Web site yet , and George Wallace, Jr. (R).
Although the PACT board meeting was "packed" with TV and print reporters, most drifted away quickly after Lt. Governor Folsom addressed the Save Alabama PACT meeting. Lacking the deadlines (or dinner plans?) of traditional media, Mooncat and I stayed throughout the meeting and got excellent footage of the treasurer candidates and even got the chance to grill Cowgirl Kay Ivey on her lackluster performance managing the program.
News accounts in today's papers are rather, well, dry. Not to mention short.
Bob Lowry covered the meeting for the Huntsville Times and Stan Diel was there for the Birmingham News. (Note: I'm not criticizing the reporters who sat through the entire meeting, but rather the editors who don't give them enough space to adequately report what they saw.)
Want more? On the flip, we have video and turn a rather more acerbic eye on the proceedings, players, and decisions made.
Alabama's troubled Prepaid Affordable College Tuition (PACT) program was in the news yesterday as some legislators search for ways to fix the program.
Representative Greg Wren (R-Montgomery) held a press conference yesterday to announce a package of PACT-related bills:
State Rep. Greg Wren plans to introduce a three-bill legislative package that, if passed, would make it state policy to honor all of the existing 48,000 PACT contracts.
[...]
Wren's package would also redesign the PACT board, make that board report to the state Legislature on an annual basis and report to a new 25-member advisory task force on a quarterly basis. The task force would include legislators and two PACT contract holders from each of the seven congressional districts. Legislators also would serve on the new PACT board.
The state Board of Education Thursday approved tuition increases of 19.7 percent for all of Alabama's two-year community and technical colleges.
As the four-year colleges and universities have increased tuition at rates approaching 10% per year (or more!), the community colleges and two-year colleges have been been the only bright spot as PACT writes tuition checks for contract holders.
Cowgirl Kay Ivey is at it again. Her delusions of support from Alabama PACT parents and students were on full display last May:
"...I was deeply gratified to hear from those in attendance time and time again, "Kay, you concentrate and work hard for a solution for PACT— we’ll all be waiting here for you at the time you decide to move forward with your plans for 2010."
But now, we find in this news item (titled "PACT 'Going Fine' State Treasurer Says") from the Shelby County Reporter that she's decided the rewrite the history of the Alabama PACT program debacle. Surprise! She's not responsible:
“The fact is, the market just damaged every investment company there is,” Ivey told the group. “The market just hit everyone. An RSA (Retirement Systems of Alabama) study showed there was not mismanagement of funds or anything like that.”
Democratic candidate for Alabama Treasurer, Jeremy Sherer, was quick to respond. He's a nicer person than I am, because he didn't recommend either resignation or medication:
“I think she is more focused on running for governor than upholding her responsibilities as treasurer right now,” Sherer said. “There were unsound investments made by the PACT board while the economy was tanking.”
The treasurer candidate also blasted Ivey for what he said were overly conservative investment practices over the past few weeks.
“It’s just bad financial management during bad economic times. She is not utilizing her due diligence in managing those investments,” Sherer said. “Now, when she should be capitalizing on the rising economy, she is playing it conservative.
“The next treasurer will be a stakeholder in PACT, and will have to work hard to manage those investments,” Sherer added. “But none of those are topics she is talking about right now.”
Sherer's entire statement on Kay Ivey and Alabama PACT is on the flip.
One Alabama state treasurer, Kay Ivey, helped break PACT. One Alabama Democratic candidate for Treasurer, Jeremy Sherer, is working on solutions to fix Alabama's Affordable Prepaid College Tuition program.
The State of Alabama must reassure parents and students that tuition will be paid. Sherer: "I say this because at the moment, tuition payments are only guaranteed by PACT through spring semester 2010. I firmly believe that PACT families deserve more certainty regarding their children’s college future than that."
Cut the administrative costs for PACT and make better investment decisions. We're paying almost $2 million each year to these investment "manager" who advised the board to "stay the course" last year as the market bottomed out. Countrycat's side note: Our investment advisor moved us out of stocks last summer and we lost less than 10%. And he charged a LOT less than $2 million/year!
Don't try to rush a solution. With the shaky economy and state budget crisis, we need to carefully design a long-term solution.
The Oil & Gas Trust Fund shouldn't be our first stop. It funds Medicaid, the general fund, and other state programs. Sherer: "I do not believe that taking funds from the O&G TF is a moral or politically viable solution for PACT."
Alabama's Unclaimed Property Fund. Sherer: "The Unclaimed Property Fund is now valued just short of $400 million. I believe we can siphon money from this fund, to help restore PACT investments."
Get some cooperation from state colleges. Sherer: "The best way this can be done is by the state legislature giving stable, predictable funding to our higher education institutions."
Flexibility is critical. Sherer: "...state leaders must also appreciate that the best source of revenue in 2012 might not be the best source of revenue in 2020."
Wow. Someone who's giving this careful thought, considering the best solutions, and not looking for a "quick fix" that will help him/her get elected, but could hurt the long-term viability of the program.
What happened to Ivey and company is that they didn't expect the huge market downturn last year. They all knew there were structural problems in PACT, but they seemed very far away and so Ivey, Byrne, even Folsom seemed willing just to kick the can down the road and leave the problem for someone else.
Jeremy Sherer though, knows what he's getting into and is working for real solutions, not just sound bytes. He has the vote of this PACT parent!
After the PACT board declined to discuss the RSA study of the PACT trust fund's financial situation at Wednesday's meeting, Ivey attended the "meeting after the meeting" with worried PACT contract holders.
Ivey was number 4 on the list of gubernatorial hopefuls who spoke - after Congressman Artur Davis, Agriculture Commissioner Ron Sparks, and former 2 yr college chair (and PACT board member), Bradley Byrne. Reporter Bob Lowry from the Huntsville Times noted the "political turn" of the discussion. Jeremy Sherer, who's running for Treasurer, also spoke to the group.
Like the other candidates, Ivey pledged to work to keep PACT solvent, and - as Mooncat noted - probably made points with the crowd just by having the nerve to show up. What a brave cowgirl she was!
Things went well for her until the questions began. It was soon obvious that Ivey prefers to speak to a crowd, not talk with voters. It wasn't quite a gunfight at the PACT corral, but she certainly did quite a dance trying to dodge the lassos of PACT parents who want her to include a blurb about Save Alabama PACT in future PACT mailing. It's the only way, organizer Patti Lambert, explained, to get the word out to all 48,000 contract holders.
Without the combined voice of those thousands of parents, grandparents, students, their friends, and families, there may be no chance of the Legislature acting quickly enough to save the program.
Watching her desperate attempts to dodge the question, I was reminded of the song in "Best Little Whorehouse in Texas" where the governor danced about singing:
Ooh, I love to dance the little sidestep / Now they see me, now they don't / I've come and gone / And ooh, I love to sweep around a wide step / Cut a little swath / And lead the people on!
The Kay Ivey sidestep video is on the flip. Watch to see how much MORE concerned she seems to be about the reputation of the PACT board's attorney than she about the program. AND read excerpts from Jeremy Sherer's statement about the PACT meeting and parents' request for help.
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Using her "
Yet Byrne has found himself pretty much beaten by the news cycle this week. What's amazing is how self-inflicted the wounds are. From PACT to the Bible, Mr. Byrne seems to be having trouble choosing a position and sticking with it.
The parents' anger and disappointment wasn't a surprise, but Ivey seemed completely unprepared for the tough questioning. And it's no wonder: the Alabama media has pretty much given her a pass. I haven't seen a single interview or news report that asks the tough questions or confronts Ivey's version of PACT fantasyland.
"...I was deeply gratified to hear from those in attendance time and time again, "Kay, you concentrate and work hard for a solution for PACT— we’ll all be waiting here for you at the time you decide to move forward with your plans for 2010." 
Democratic candidate for Alabama Treasurer, Jeremy Sherer, was 
