A bill (HB228) providing a funding solution (the Education Trust Fund) and cost controls (limiting tuition increases for PACT enrollees) for Alabama's troubled Prepaid Affordable College Tuition (PACT) program passed the Alabama House last week and is expected to come up soon in the Senate. Save Our PACT advocates are urging everyone to call or email their Senators and ask them to:
SUPPORT HB228 in the Senate with CAPS and UNSEVERABILITY.
The CAPS are tuition & fees increase limits -- no more than 2.5% per year for PACT students, tied to the rate in effect on Sept. 30, 2009.
Section 3. No public institution of higher learningshall charge the PACT plan or a PACT plan contract ownermandatory fees or tuition per credit hour in an amountexceeding the cost of mandatory fees or a credit hour as ofSeptember 30, 2009, except that an annual increase of thelesser of the actual annual tuition or mandatory fee increaseor an annual tuition or mandatory fee increase of two andone-half percent shall be allowed for each year thereafter.
The $64,000 question is this:
Is it constitutional for the Legislature to specify what colleges and universities can charge a particular group of students?
Brian at Flashpoint lays out some concerns with the PACT bill, including the one Republicans have raised about whether it passes constitutional muster:
The concern that [Mike] Hubbard raised is that the legislature does not have the constitutional authority to set tuition at state universities controlled by constitutionally established boards of trustees. Such sections of the Alabama Constitution begin as follows:
[The university] shall be under the management and control of a board of trustees…
Now, I’m no lawyer. Does that statement preclude the legislature from micromanaging the universities and usurping the authority of the trustees?
Normally I'd just write that off as Mike Hubbard (in addition to being a state senator, he's Chairman of the Alabama Republican Party) being ornery and opposing pretty much anything a Democrat proposed, but the insistence on inclusion of an INSEVERABILITY clause strikes me as strange.
Section 9. The provisions of this act areunseverable. If any part of this act is declared invalid orunconstitutional, that declaration shall affect the part whichremains.
Brian has searched the ALISON records and says such a clause is extremely rare, and in fact the original bill contained a SEVERABILITY clause which would preserve the remainder of the legislation should any part of it be declared invalid or unconstitutional. This whole thing makes the hair on the back of my neck stand up. Why?
Action notice for those working on a Legislative solution for the PACT program, famously run into the ground by Treasurer Kay Ivey:
We are closely watching five bills in the legislature. They are House Bills: HB122, HB123 and HB 124 and Senate Bill: SB162. (to read these bills, go to www.savealabamapact.com and click on "documents" on the front page of the website).
The Senate Fiscal Responsibility and Accountability Committee has delayed consideration of a bill [SB162, sponsored by Sen. Ted Little (D, SD27)] to provide $236 milllion across several years to fund PACT. The delay was caused by the Alabama Education Association requesting a public hearing about it.
This public forum is Wednesday, January 20, at 1:30 pm in Room 727 of the State House Building, 11 Union Street, Montgomery. We need anyone who can possibly come to be there. If you have a green T-shirt, wear it. If not, try to wear something green. We are advised to come early.
What: SB162 Public Hearing! Start Time: Wednesday, January 20 at 1:30pm End Time: Wednesday, January 20 at 3:30pm Where: Rm 727 State House - Montgomery
Please also call the members of the FR&A committee of the Senate asking that they attend the public hearing and to support the bill SB162 in both the committee and when it makes it to the senate floor! Contact information for the committee members can be located on our website directly here: http://www.savealabamapact.com/data/files/Contact...
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.
More from the parents and grandparents who bought Prepaid Affordable College Tuition (PACT) contracts from the state of Alabama and are now trying to make sure the state doesn't walk away from the deal. Look and listen to these people; they're average Alabamians worried about the future and now they have one more big, unexpected worry -- the college tuition they thought was securely paid for years ago? It suddenly isn't.
"I actually thought this was the one secure thing we had in our life."
"We signed a contract. We didn't make an investment."
Suddenly PACT "ain't got the money no more."
PACT contracts were marketed widely -- often via brochures sent home with school children. Folks were moved to buy these because the state seal was used in marketing, they thought the state was behind it and they expect the state to keep the promise. Would any of us expect less?
One of the things I did yesterday at the State House was talk to people who bought PACT contracts on behalf of their children or grandchildren. These folks believed they were buying pre-paid college tuition -- which is exactly the way the program was marketed to them. None of them believed they were investing in the stock market, a mutual fund or any other investment vehicle. They believed it was college tuition for their kids tomorrow at today's prices.
Many of them paid for the PACTs month by month over a period of 10 or 12 years. They are average folks, not wealthy -- many of them took off from work to attend the Legislature's opening day. They sacrificed to guarantee their kids or grandkids could go to college. They played by the rules, planned ahead and tried to do what was right by their children and grandchildren, and now they are afraid those kids will be shut out of that higher education they dreamed of.
The man speaking to the crowd is Rep. Greg Wren who is reminding them that majority of the 45,000 or so PACT beneficiaries cannot legally vote -- they're too young -- so their families must vote on their behalf. And virtually every green-clad PACT supporter I asked said they will remember what candidates and elected officials did about PACT when they next go to the voting booth. These folks are doing real grassroots organizing around a kitchen table issue and they're building a political force in Alabama.
We often lament the lack of trust Alabamians have in their state government ... if the state of Alabama welches on 45,000 PACT contracts it will be a glaring example of government earning that distrust.
I am not sure how to embed video, but the full text is below the cut - I'll add a link to video when I find it. Some choice quotes from our good Governor's final State of the State address (and Lt. Governor Folsom's response) below.
Just so you know - anything in brackets is from my personal typed transcript and diverges from the official remarks.
On this year's budget:
I know you've read the same dire predictions and heard the same horror stories that I have. You've heard nothing awaits us in this session but doom and gloom. The lobbyists and the gambling interests have told you over and over that we must find new revenue, somewhere, or the sky's going to fall.
Ladies and gentlemen, that's what we in Clay County would call a [bunch of bull].
In the budget I'm sending you, General Fund agencies will receive the same amount of funding that they will be getting this year. No cuts. In fact, there is the potential for them to receive an increase of up to four percent. And in the education budget, that budget will increase funding for schools by over $400 million.
On Riley's economic recovery plan:
The first proposal is a $1,500 tax credit to jumpstart new jobs. A proposal that an independent economist projects will create 6,000 new jobs!
This idea is becoming a national model to get people back to work. At least one other state is using our same proposal to help in its economic recovery. And the President recently announced he is proposing this idea also. If others around the country are realizing tax incentives do work to create jobs, then Alabama should be leading this effort, not falling behind.
Governor Riley took a moment to attack a Congress "we can't control" for passing big spending bills and unfunded mandates, using it as a handy segue into something we can control - gambling! Quotes:
I can't imagine anyone who thinks the best way to help our economy is to have Alabamians lose billions of dollars gambling!
(Unsurprisingly, WSFA's camera cut to Commissioner Sparks sitting in the front row.)
No, this money is taken out of that county and sent to out-of-state slot machine makers and gambling bosses. Just imagine how many billions more will be taken out of the pockets of Alabamians if you vote to make it legal. Talk about a rip off!
Now I ask you: who ultimately pays for all these [social] problems? The casino operators? Not a chance. They're making money hand over fist off this misery. It's the taxpayers who are the ultimate losers. In states with casinos, for every one dollar casinos contribute in taxes, they cost taxpayers at least three dollars in additional government services to deal with the devastation the casinos leave behind.
If there is one person who knows the lawlessness and corruption that gambling brings, it is [fmr. Gov. John Patterson]. Listen to his warning, which was in the newspaper last week. He said: "Gambling brings the bad people to town and brings out the bad in good people. There's nothing about it that's good."
Ladies and gentlemen, heed his warning. If you vote to let this happen, you'll be swimming in a pool that has more sharks than all the oceans of the world.
Charter schools came up:
If you really do want to bring more education dollars into our state, then join me in fighting to allow public charter schools in Alabama!
This is truly one of those moments in our history that compels us to push open the door of opportunity -- for the sake of our children and our schools. Get charter schools on the floor for debate. Don't kill it in committee. Let every lawmaker have a vote -- yes or no. It will either succeed or fail. But if we don't try, then our failure is guaranteed. None of us -- no parent, no teacher, no student -- should allow failure to ever be inevitable.
And on PACT:
I believe this state made a commitment to families who enrolled in our pre-paid tuition program.
WSFA had a few questions for Lt. Governor Folsom afterwards - there are a few more at my twitter stream, but here's my favorite exchange:
Concerned about Gov appearing dependent on more Fed funds? Folsom: Has been a res introduced in DC asking for addtl stim money and extension
Folsom: There's hope at this time that maybe DC will take action ... a lot of people are hoping we can have some addtl $ but we don't know
Curse that uncontrollable Congress and its delicious, delicious stimulus cash. What say you, friends? Be creative: Press Secretary Todd Stacy is already finding our side of the aisle lacking this evening.
Concerned that their children and grandchildren may not receive their planned for college education, Alabama PACT families have banded together to become a grassroots political force determined to successfully lobby the Alabama Legislature this session.
They aren't looking for a bailout, but they want the state of Alabama to meet its obligation.
The video below is from a meeting of Montgomery area PACT families last night. Two gubernatorial candidates, two candidates for State Treasurer and three members of the State House attended and addressed the crowd.
This morning, green clad PACT families will have assembled on the steps of the Statehouse for a rally before they go inside to visit their state Representatives and Senators to find out where they stand on honoring the state's obligation.
In the video, Save Alabama PACT founder Patti Lambert tells the group that if each of the 45,000 PACT families can bring 5 to 10 people to the voting booth in 2010 to "support the candidates who support us" they can wield real political power in the coming year. Congressman Artur Davis made the same point:
"Don't underestimate the power of your ranks. ... There are 48,000 families like you. The governor's race of 2002 was decided by 3000 votes. The lieutenant governor's race in 2006 was decided by 21,000 votes. Do you realize that you have the power, by yourselves, potentially to determine who will stand on the steps of that state capital?"
Urging parents to come and lobby the Legislature today, Lambert said wearing the group's trademark green shirts is options. "I don't care what color green -- I don't really care that you wear green -- I care that you are there."
Republican candidate for Treasurer -- and co-founder of the PACT program -- George Wallace, Jr. advised PACT parents to bring their kids with them to visit Legislators. He said they should have the actual PACT beneficiaries write handwritten letters and send them, with pictures of the kids, to their state representatives and senators so legislators will connect PACT with human faces.
Rep. Greg Wren is sponsoring a series of PACT related bills and said they not only have bipartisan support, but many legislators are asking to get on board as co-sponsors. On Monday eleven of his fellow House members asked to be added as co-sponsors to the PACT bills.
Lambert and others have been building this political force since it became obvious last year that the PACT program would fail unless families got involved. This session of the Legislature will be a test of how well they can exercise grassroots political power in Montgomery.
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."
On New Year's Eve morning Bradley Byrne guest-hosted Dale Jackson's radio show and said the following, emphasis mine:
"Now, I am not telling you there is a legal obligation on behalf of the state to fix this problem. There’s not. But there is a moral obligation, and in my judgment, and the way I look at things, a moral obligation is actually a lot more important than a legal obligation. So, I think the state does have moral obligation to fix this problem."
Byrne (who served on the PACT Board of Directors while the fund tanked) has maintained for some time that the state of Alabama has a moral obligation to the PACT families, but this is the first time I've heard him explicitly say there is no legal obligation. That's like saying the PACT contracts are just so much worthless paper and the folks who own them must depend on the mercy of the governor and the Legislature.
As for his assertion that a moral obligation is more important than a legal obligation, which was repeated on his website, well, that's just mind-boggling. A moral obligation and a buck fifty will get you a cup of coffee -- and you can get the same thing for a buck fifty without the moral obligation. Sure, it may be important to have fulfilled your moral obligations before you show up at the Pearly Gates, but in terms of earthly transactions, the legal obligation trumps the moral every time.
Imagine you give $15,000 to someone in exchange for a piece of jewelry to be delivered at some future time. Do you rely on that person's moral obligation, or do you expect them to sign a piece of paper (aka, contract) affirming the agreement? Paper, every time.
If a PACT fix comes before the Legislature, do you think some vague, moral obligation will trump their legal obligation to balance the budget? Hell no! They'll apologize and use the money for something else if they possibly can. And a Governor Byrne would almost certainly do the same thing, perhaps rationalizing that St. Peter might be lenient since the moral obligation for PACT is spread over the whole state.
(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.
The Alabama Pact Board has voted to approve changes to the Pact program starting in fall 2010. Tuition payments would be capped leaving pact beneficiaries responsible for any shortages.
"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.
If your family has a PACT contract, don't miss the PACT Board's meeting tomorrow in Montgomery at 1:30 pm in the State Capitol Auditorium.
“Our main concern is tuition is being paid for the spring of 2010 even though it has the money to pay through 2014,” Rebecca Thrasher of Decatur, secretary-treasurer of Save Alabama PACT, said Monday. “The Legislature put the program into effect and we feel, while it was turned over to the treasurer’s office, the Legislature is responsible.”
The PACT Board isn't scheduled to meet again before the Legislature's regular session begins next January -- even though most of the solutions being kicked around require action from the Legislature.
PACT = Prepaid Affordable College Tuition, but after the program lost roughly half it's value in the stock market, Treasurer Kay Ivey revealed the state was just kidding about the "prepaid" part. Parents and grandparents who purchased PACT contracts (yes, they are legally binding contracts) were understandably riled up when Ivey indicated the money may not be there when their kids are ready for college. They didn't just get mad, they got organized.
There's a Save Alabama PACT Facebook group, a Save Alabama PACT website, forum and even Save Alabama PACT t-shirts, bumper stickers and yard signs. Patti Lambert and the other PACT families have done an incredible job of organizing around a central, non-partisan issue -- making sure the state of Alabama doesn't back out on it's commitment to provide college tuition to PACT holders. They've done such a good job, and there are so many (48,000 PACT holders altogether) that they just might be a political force to be reckoned with in the 2010 state elections.
Which is exactly what they're trying to do, of course.
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.
Using her "
They aren't looking for a bailout, but they want the state of Alabama to meet its obligation. 
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.
Mooncat asked this question when she blogged about Byrne's contention that a 
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 
