Alabama Lt. Governor Jim Folsom, Jr. is encouraging people to join his Facebook Fan page. Now, you may already think you have joined! I did, but never saw many campaign updates and asked a campaign staffer about it. ooops! I hadn't joined the "official" page, but one set up by supporters.
The staffer said that the campaign had been working with several groups of supporters who had set up "Jim Folsom pages" and encouraging them to send their fans to Folsom's official Facebook page. The campaign makes almost daily updates and you can keep track of where Lt. Governor Folsom has been and where's he's going to be (in Huntsville tonight, as a matter of fact).
The Birmingham Downtown Democrats are kicking off the fall campaign season in high style with the former Governor and current Lt. Governor of the great State of Alabama, Jim Folsom, Jr.
Folsom will be the featured speaker at the Downtown Dems luncheon on Friday, Sept. 10th at the Harbert Center, 2019 4th Avenue North. No word on whether his wife Marsha (pictured with him at right) will be able to attend, but the event is sure to be a treat either way. Details:
Lunch will be served @ 12:00 noon (cost $15.00)
Please RSVP by emailing downtowndems@gmail.com or by calling Judy at 822-8416. Please do this as soon as possible because we are again expecting a large crowd and need an accurate count for lunch.
As all of you know, Governor Folsom is up for re-election this year and has opposition in the general election. If you would like to visit his campaign website, the address is www.folsom2010.com and if you would like to join him on facebook, that address is www.facebook.com/pages/Jim-Folsom-Jr/142036924080.
Gov. Folsom will also make an appearance in Huntsville tomorrow evening for a fundraiser followed by a Young Folks for Folsom reception at Amendment XXI. Details on the Folsom fundraiser:
Tuesday, August 17th 2010, 5:00pm-7:00pm
Sirote & Permutt, PC 305 Church Street Southwest Huntsville, AL 35801
Suggested contribution of $500 per couple. Other amounts also appreciated.
Please RSVP: to 540-239-1730 or laureneklumpp@gmail.com
Young Folks for Folsom Reception at Amendment XXI - A casual meet and greet among the young folk of Madison County interested in supporting the campaign and meeting the Lt. Governor.
Please don't make the mistake of assuming that Folsom will be a shoo-in and doesn't need your support just because he is an incumbent and a well known figure in Alabama politics. This is not an election cycle where anything should be taken for granted.
The Alabama Citizens for Constitution Reform (ACCR) announced today that Lt. Governor Folsom and Robert Bentley (GOP candidate for Governor) will appear in a forum together to discuss reforming Alabama's constitution. The event is to be held Thursday, August 19th Tuscaloosa at that Hotel Capstone Ballroom (320 Pawl W. Bryant Drive). Former Governor Albert Brewer will moderate the event beginning at 10:30. The forum is free and open to the public.
According to the ACCR's announcement, this isn't a "debate" about reform. The candidates will "participate in a discussion on the views on constitutional reform."
There's more!
Immediately following the forum at 11:30, the Fourth Annual Bailey Thomson Awards Luncheon will commence at the Bryant Conference Center Sellers Auditorium, (240 Paul W. Bryant Drive), a short walk from Hotel Capstone.
Tickets to the luncheon are $50 and can be purchased by clicking here.
Although the ticket price for lunch is a little steep, the forum is free and this is a great opportunity to hear candidates discuss constitution reform in front of an audience who supports it.
I'm pretty sure that former Governor Brewer won't let either candidate get away with stuff like "constitutional reform means higher taxes" or a "constitutional convention would be run by special interests."
And, since Brewer was governor the Last time the Legislature showed interest in updating any part of the Alabama Constitution, he should also be able to enlighten both candidates about the chances of it happening again.
Yes, the prospect of facing Kay Ivey in the fall has not deterred Lt. Gov. Folsom from filing for re-election (that's a joke) nor has he been tempted to throw his hat into the governor's race after all as has been suggested elsewhere. Jim Folsom, Jr. is running for re-election, issuing this statement earlier today:
This afternoon, I will officially qualify as a candidate and ask the people of Alabama to support my campaign for re-election as Lieutenant Governor.
During any election year, a long list of candidates announce for political office. Everyone who runs has their own reasons for running and why they think they would be the best choice.
I want to take few minutes this morning to tell you why I’m running.
As you know, our state is facing some of the most difficult economic times in memory. Our people are hurting and they are looking for answers.
Heated political rhetoric and partisan differences should not get in the way of the best interests of Alabamians looking for real answers to the problems they face every day.
Heated rhetoric won’t provide the answers they need. Proven leadership will.
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.
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."
Sparks has received some criticism here for his handling of those decisions, so perhaps we shouldn't have been surprised when he volunteered an explanation.
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.
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!
At its February 25, 2004 meeting, the Alabama PACT board learned that the program was funded at 92.7% and had an actuarial deficit of $51.8 million. The board "discussed the need to regain a fully funded status."
At the PACT board's August 25, 2004 meeting, Alabama Commission on Higher Education director, Dr. Mike Malone, gave the board what turned out to be a prescient warning:
Dr. Malone briefly discussed the reauthorization of the Higher Education Act and his expectation of massive unfunded mandates. He expressed concern about the affordability of higher education, stating that federal initiatives such as this would only exacerbate the problem.
While it's good to know that the PACT board was on top of the problem - at least a little bit - their two-fold attempt to solve the problem by making riskier and riskier investments and embarking on an aggressive marketing campaign wasn't, in retrospect, the best solution.
The marketing campaign, in particular, seems more than a little deceptive. At almost every board meeting from 2004 on, the board discussed the need for more contracts and higher investment returns. They grew increasingly nervous about poor performance by investment managers, even getting rebuked in 2005 by a Callan representative who told them they couldn't "can't just fire managers every six months"
But instead of approaching the Legislature or other state leades about the problem, the board kept quiet - publicly at least. Treasurer Kay Ivey scoffed when her Democratic opponent criticized the PACT program as poorly-run and underfunded. The board brushed off a request from PACT parent, Dale Goode, at the May 14, 2004 meeting to guarantee benefits, telling him that the board "was very conscientious about the program and believed that benefits would be paid..."
Why the public silence? Maybe it had something to do with the $100,000 marketing campaign the board was using to sell more contracts. If parents and grandparents thought the program was unsound, who would join? The board discussed the need to sell more contracts to keep the program afloat and worried about the effect of declining sales.
The new marketing campaign launched in 2007 (page 16) included a new tag line: "Prepay A Child's Tuition." Prepaid? There's that pesky word again....
Monday, June 1st was the official starting gun for the 2010 Alabama elections. To mark the occasion, countrycat and I interviewed Democratic Congressman and gubernatorial candidate Artur Davis. We'll be posting video clips question by question over the next few days -- uncut so you can see and hear Davis' remarks in context.
One of the most interesting things we heard Monday was the reference to Lt. Gov. Jim Folsom as a potential partner, both in governing and as a candidate. Until a couple of months ago Folsom was viewed as Davis' strongest and most likely rival in 2010. We already knew that, if elected, Davis planned to tackle ethics reform legislation in his first year but he also plans to take on education reform in his second year. He also talks about making Alabama government more accessible, saying "the various special interests have every right to be at the table, they don't have a right to have exclusive seats at the table." As a congressman, Davis has held monthly town hall meetings around the district and he would bring that accessibility to the governor's office as well, particularly to build support for his reform agenda. The Congressman also referred to the changing political climate, pointing to increased identification with the Democratic party and approval for President Obama, even in Alabama, as positive developments for his campaign.
The first question was an easy one: Are you where you want to be one year from the primary? We hoped to hear what Davis will be telling crowds around the state as he officially kicks off the campaign and get a hint of what he and his staff are telling prospective supporters, and more to the point, donors, as the campaign begins in earnest. June 1 was the first day state candidates could solicit or accept contributions for the 2010 election.
Insurgents break the rules. That's generally the only way they can win the battle against a better armed, funded, and/or more numerous opponent. It works in war and it works in political campaigns as well.
Alabama Democrats (maybe Republicans, not as familiar with them) have a political system where the most important rules aren't written, but just understood by the main players. It's easy to get complacent and quite content with the status quo. Make a few calls to the right people and the money rolls in and the nomination is (almost) a lock. All before you even fill out the qualifying papers.
How does the outsider fit into this system? He/she doesn't. The only way to win is to follow the written rules to the letter (after all, they'll be waiting for you to slip up on that) and consider your unwillingness to follow the unwritten rules as a strength, not a weakness. You "press" (to use the basketball term): try harder, keep the pressure on and the opposition off guard.
This appears to be Artur Davis' strategy. He's said he plans to follow the written rules of campaigning to the letter, even though he hopes to reform many of the campaign finance and disclosure rules as governor. "I'll be following the rules we have now because my opponent will be," he said in an interview with LIA on June 1st in Birmingham.
It's the unwritten rules that he's breaking. The rules that govern who runs for what office, when, and how they raise money. Those Alabama political mores include the following:
The Alabama PACT board of directors met in Montgomery today, and did... well.... nothing much.
Over 100 anxious parents, grandparents, and press folks gathered to hear the latest financial reports and find out what - if any - action the board decided to take.
The days' winner is undoubtedly 2-yr College Chancellor - and expected Republican gubernatorial candidate - Bradley Bryne. He was absolutely the first person in the room (I know, because I was the second!), and came over to introduce himself and greet each person who entered.
Bryne took a number of questions from us bloggers, parents, and press people. Once a good crowd had gathered, he stopped answering questions individually and made a statement to the entire group, then took more questions.
The days' loser has to be Treasurer (and announced Republican candidate for governor) Kay Ivey. She entered the room looking like she'd just sucked on an unripe persimmon - and her demeanor didn't improve over time.
Of particular interest to many was her lecture to those of us present to behave ourselves and "be patient" because it was taking the Treasurer's office so long to respond to requests for information. Oh, and not to mention her lengthy discussion of how she personally has always championed openness in government and accountability. Perhaps her department could back that statement up by releasing the minutes for the board meetings from the past few years. They are, after all, public documents!
Memo to Kay: If you'd put the information we all want up on the Web site, you wouldn't have to respond to individuals demanding it!!
Mooncat has the video - which we'll get cut and uploaded in the next couple of days, but this is just my initial reaction to the day. Not much happened, but at least they didn't dissolve the program. Yet.
Those of us interested in an accounting of who did what, when, and why were heartened to find out that the RSA study of the PACT program will include analysis of what went wrong and why. That's the first step towards needed accountability - and the only way to make sure that we don't find ourselves in this situation in another few years.
We can't choose a good solution for the future unless we understand how we got in this situation in the first place.
Oh wait, that resignation isn't effective until August so I guess we can expect Bradley Byrne to be helping fellow GOP gubernatorial candidate Kay Ivey blow fend off the concerns of PACT (Prepaid Affordable College Tuition) parents in Montgomery this afternoon. After all, as state Treasurer, Ivey is the principal bagholder in this mess, but the rest of the Board, including Byrne and Lt. Governor Jim Folsom, are sitting close enough to get dirty when the sh*t hits the fan.
Speaking of which, the PACT Board meeting will be Wed., May 20 at 1 pm in the Archives Room (205) of the State Capitol in Montgomery. Kay Ivey and Co. may not expect much of a crowd for this one, but I figure parent and grandparent interest will still be high, especially since the Legislature just kicked the PACT can down the road until 2010 at the earliest.
Approximately 48,000 contract holders are in limbo and all the public servants are hoping someone else will deal with the problem. Business as usual in Montgomery.
What if the State of Alabama made a pact but failed to follow through? Looks like we're about to find out, and I guarantee that it's not going to be pretty. The only people who'll come out ahead in this will be the attorneys for both sides.
Governor Bob Riley, after months of public silence on the subject, finally did something. He made a dramatic visit to the Legislature yesterday - accompanied, of course, by TV cameras. WSFA in Montgomery has the video. He called for legislative action, and noted that "some people" (WHO? Name names, Governor - we're not mind readers) in the Legislature don't want address the matter.
The word is now that the bill to turn over the PACT program to the RSA has to pass the Senate today (SB581) , or it's dead for the session. The House passed a separate bill (HB748) yesterday, which now goes to the Senate.
The clock is ticking and kids are about to graduate from high school. They and their parents stand a good chance of being left high and dry by a state that sold them a contract that - up until a couple of months ago - was advertised on TV, local banks, at PTA meetings, and state Web sites as a "contract to prepay 128 hours of undergraduate tuition."
Follow me on the flip and see how the Treasurer's office was describing the program on its own Web site!
Folsom said he's optimistic about what can be accomplished in the state Senate and wants to continue his role as the Senate's presiding officer.
Well, this certainly shakes things up a bit. I don't think Ron Sparks will be announcing a run against Folsom on Friday. Meanwhile, Congressman Artur Davis has released this statement:
"I greatly respect and like both Jim and Marsha Folsom. He will be a valued part of the Democratic ticket as Lieutenant Governor and if both of us are successful in 2010, he will be invited to be a genuine partner in my efforts to revive Alabama’s economy. Whoever ends up running for governor, I will continue to prepare to take my case to voters in every sector of this state."
Bob Crompton, the Atlanta accountant who prepared the PACT program's 2008 actuarial report, told the board last week that the deficit today is $481.3 million, meaning the deficit is nearly equal to the program's assets.
To further put that in perspective, the Alabama program's deficit now is about twice the size of the next-biggest prepaid program deficit, in Texas. And the Alabama program has less than a third the assets the Texas program has.
"You will need to take some action," Crompton told the PACT board.
The photo was contributed by someone I'll call PACTDad. He owns two Alabama Prepaid (Oops, we're just kidding) Affordable College Tuition (PACT) contracts for his teenagers. Let it serve as a reminder to Kay Ivey, Bradley Byrne, Jim Folsom, Paul Hubbert, the rest of the PACT Board and the entire Legislature, not to mention the Alabama press and public, that in the end we're talking about the future of Alabama's children here, not the stock market or the next election. Will 50,000 or so young PACT beneficiaries get the college education their families thought they paid for or will they be forced to forego dreams of a higher education or end up deep in debt in order to earn a degree?
Back to PACTDad who sent the photo. In hindsight, the PACT purchase looks like a terrible decision. Why did he purchase a PACT contract for his kids instead of investing the money himself or putting it in a mutual fund or savings account?
In the late 90's I was kicking myself as to why I purchased the PACT when my investments could have returned so much more. In the early 2000's I was thankful for the PACT because the tech bubble had burst. Bottom line, the PACT contract offered a guaranteed solution.......an insurance policy...... that I could always fall back on. I didn't have to worry about college tuition (I thought). My other investments could pay for housing and books.
All investing inolves risk........which is why I purchased the PACT's.....to avoid the risk. They are now trying to say I purchased an investment vehicle with limited upside gain but maximum downside risk. Who in their right mind would purchase a traditional investment with such framework?
Note that PACTDad was sufficiently savvy to notice the PACT contract only covered the cost of tuition and fees for his children. Since 1994 he's been arranging his finances so the money would be there for the other costs of a college education: room and board, books and so forth. Lots of PACT parents are in the same boat. They planned ahead, bought their PACT contract, then saved toward the costs they knew PACT didn't cover. Little did they dream PACT might fail to deliver on the costs it did promise to cover.
At Tuesday's Alabama Prepaid Affordable College Tuition (PACT) Program Board meeting, Dr. Greg Fitch led the discussion of options for the future of the program. Fitch is Executive Director of the Alabama Commission on Higher Education. Fitch laid the groundwork for the options with background on the financial situation the PACT Board is facing. Then he began to present options for the future.
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The Birmingham Downtown Democrats are kicking off the fall campaign season in high style with the former Governor and current Lt. Governor of the great State of Alabama, 
Yes, the prospect of facing Kay Ivey in the fall has not deterred Lt. Gov. Folsom from filing for re-election (that's a joke) nor has he been tempted to throw his hat into the governor's race after all as has been suggested elsewhere. Jim Folsom, Jr. is running for re-election, issuing this statement earlier today:
Using her "
Mooncat asked this question when she blogged about Byrne's contention that a 
The video below the fold is kind of a bonus from our recent interview (see 
One Alabama state treasurer, 
But instead of approaching the Legislature or other state leades about the problem, the board kept quiet - publicly at least. Treasurer Kay Ivey scoffed when her Democratic opponent criticized the PACT program as poorly-run and underfunded. The board brushed off a request from PACT parent, Dale Goode, at the May 14, 2004 meeting to guarantee benefits, telling him that the board "was very conscientious about the program and believed that benefits would be paid..." 
Monday, June 1st was the official starting gun for the 2010 Alabama elections. To mark the occasion, countrycat and I interviewed Democratic Congressman and gubernatorial candidate 
The Alabama PACT board of directors met in Montgomery today, and did... well.... nothing much.
The days' winner is undoubtedly 2-yr College Chancellor - and expected Republican gubernatorial candidate - Bradley Bryne. He was absolutely the first person in the room (I know, because I was the second!), and came over to introduce himself and greet each person who entered.
The days' loser has to be Treasurer (and announced Republican candidate for governor) Kay Ivey. She entered the room looking like she'd just sucked on an unripe persimmon - and her demeanor didn't improve over time. 
Oh wait, that 
The photo was contributed by someone I'll call PACTDad. He owns two Alabama Prepaid (Oops, we're just kidding) Affordable College Tuition (PACT) contracts for his teenagers. Let it serve as a reminder to Kay Ivey, Bradley Byrne, Jim Folsom, Paul Hubbert, the rest of the PACT Board and the entire Legislature, not to mention the Alabama press and public, that in the end we're talking about the future of Alabama's children here, not the stock market or the next election. Will 50,000 or so young PACT beneficiaries get the college education their families thought they paid for or will they be forced to forego dreams of a higher education or end up deep in debt in order to earn a degree?
