Left In Alabama
PACT

Debt, Unemployment, & Underemployment - Is College Really A Good Value?

by: countrycat

Wed Aug 11, 2010 at 06:00:00 AM CDT

In 2009, job offers for graduating college students dropped 20% over 2008.  This year, offers were up a measly 5%.  Only about half of students who begin college get a 4-year degree within 6 years.  And in 2006, the average college senior was already $19,000 in debt at graduation.  Given that tuition at private and public colleges continues to rise far faster than inflation, that $19,000 probably sounds like a bargain to this year's graduates.

student debtAll those numbers lead some to ask whether a college education is worth it.

The question is understandable. Private college tuition and fees have risen 70 percent over the past decade, according to the College Board. That is more than twice the rate of inflation. Public college tuition and fees have doubled in the same timeframe.

This MSNBC article notes that the unemployment rate for college graduates is about half that of high school graduates, but offers this advice:

Perhaps the greatest lesson of the Great Recession isn't that you shouldn't go to college, but that you should approach it like you would any other investment: with caution.

I can't help but wonder when it was that higher education became a synonym for job training program.  Is that how we should approach college as students, parents, state legislators, or college faculty and administrators? 

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The Alabama PACT Fix That Wasn't - Huge Tuition Increases Threaten the Education of All Students

by: countrycat

Mon Jun 21, 2010 at 13:14:00 PM CDT

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.

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Jeremy Sherer Gains Another Small Town Paper Endorsement

by: countrycat

Tue May 25, 2010 at 08:40:00 AM CDT

Democratic candidate for Treasurer, Jeremy Sherer, picked up the endorsement of the "Daily Home," a local paper covering St. Clair and Talladega Counties:Jeremy Sherer

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.

 

Discuss :: (5 Comments)

K-12 VS Higher Ed: How Alabama PACT Got Caught in the Crossfire

by: countrycat

Tue Apr 27, 2010 at 13:15:00 PM CDT

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.

 

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Sparks Advocates Refund for PACT Contract Holders

by: mooncat

Mon Apr 26, 2010 at 20:09:50 PM CDT

Ron SparksAs most of us know, the Legislature has come up with a fix to make Alabama Prepaid Affordable College Tuition contract holders whole, at least until the lawsuits start to fly.  That's the honorable thing for the state to do, since these plans were marketed as "guaranteed" tuition since the program's inception.

Last August, Ron Sparks had a great statement on PACT:

If you bought it, you ought to get it.

Unfortunately, in an interview with the Editor of the University of South Alabama Vanguard, published today, Commissioner Sparks offered a much less satisfactory statement on PACT:

V: How will you save the Prepaid Affordable College Tuition (PACT) program?

S: I personally say with the PACT, that if you bought it you ought to get it. I’m not as concerned about the PACT as I am about the lottery.

I would like to refund the PACT, to be perfectly honest with you. I think it’s time we passed the lottery and gave every child in Alabama hope for a better scholarship in Alabama.

"If you bought it you ought to get it" is fundamentally incompatible with wanting to just give PACT purchasers a refund. 

Why?  Because they bought tuition, and their original purchase price -- especially for those who bought contracts when the kids were very young -- is nowhere near enough to cover current tuition costs.  PACTDad shared his calculations with us over a year ago:

Total benefit expected from the PACT contract signed in May 1994 = $66,472.22
Total contracted contribution to the PACT plan in May 1994 = approximately $10,650.00
Total shortfall to my beneficiaries if the PACT program is liquidated = $55,822.22

Offering PACT contract holders a refund doesn't even guarantee them any interest on the initial purchase price.  This option would be so devastating to PACT families that the PACT Board of Directors -- who haven't always acquitted themselves well in this mess -- rejected it out of hand in March of 2009!

I can't imagine what Sparks was thinking when he said he would like to refund the PACT.  We know the lottery is near and dear to his heart, but the PACT fix doesn't really have any bearing on a lottery -- this is not an either/or situation.  And if it's structured properly, the PACT philosophy of helping parents and grandparents plan ahead and save for college is a good deal more likely to help kids complete a college education than a smallish scholarship offered to every high school graduate as a result of an education lottery. 

Related:

Artur Davis says the PACT contracts are "legally and morally binding" and that Alabama should keep the promise made to PACT families.

Republican Bradley Byrne has said the state has no legal obligation to PACT contract holders.

Discuss :: (16 Comments)

Alabama's Prepaid Affordable College Tuition (PACT) Rescue Passes Legislature - Lawsuits to Follow?

by: countrycat

Thu Apr 22, 2010 at 09:24:09 AM CDT

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.

Alabama PACTThe 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.

Not surprisingly, the capped schools are crying foul.

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.

 

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PACT Comes Down to the Wire

by: mooncat

Thu Apr 15, 2010 at 06:55:42 AM CDT

Alabama PACT political footballHB123 and HB124 sponsored by Rep. Greg Wren (R, HD75) would restructure the PACT Board and create a PACT task force, among other things.  Both have passed the House but are stuck in the Finance, Taxation & Education Committee in the Senate.  Save Our PACT is asking concerned citizens to:

Please email and call the members of this committee - ESPECIALLY HANK SANDERS COMMITTEE CHAIR, and ask that they discuss and move these bill IMMEDIATELY!

Here is contact info for the FT&E Committee Members.  

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Big Day at the Legislature Tomorrow - PACT and Constitution Reform

by: mooncat

Wed Apr 07, 2010 at 12:49:42 PM CDT

The 2010 regular session is fast drawing to a close and it's do or die time -- pass legislation now or wait another year.

Save Our PACT members will rally at the Alabama State House tomorrow at 9 am.  They hope to turn the Legislature green with PACT students and families and are even chartering a bus from North Alabama.

SB162 (as capped in committee) will be presented to the floor of the House. We are expected opposition on this bill - but we must get this passed and on to the Senate.

1. PLEASE CONTACT YOUR REPRESENTATIVE ASKING FOR A SOLID VOTE TO SUPPORT SB162!

2. JOIN US - WITH YOUR FAMILY MEMBERS AND FRIENDS - TO SUPPORT THE BILL AND THE PACT PROGRAM IN GENERAL ON THE STATEHOUSE STEPS - 9:00 AM -- THURSDAY, APRIL 8, 2010.

We are down to the wire -- please do not disappoint - we must NOW show our support!

LT GOV JIM FOLSOM IS EXPECTED TO SPEAK AT 9:30! WE NEED PACT FACES TO SURROUND HIM AS HE ASKS FOR THE LEGISLATURE'S SUPPORT OF A SOLUTION TO PACT!

WEAR YOUR GREEN!

Alabama Citizens for Constitutional Reform are also rallying support for SJR42, a resolution to let the people vote on calling a constitutional convention, will likely reach the Senate floor on Thursday. 

Those who support reform are as follows. Senator Ted Little sponsored the Resolution.  Co-sponsors include: Kim Benefield, Rodger Bedford, Linda Coleman, Bobby Denton, Priscilla Dunn, Vivian Figures, Mark Keahey, Zeb Little, Del Marsh, Larry Means, Wendell Mitchell, Hinton Mitchem, Myron Penn, Quinton Ross, Hank Sanders, Bobby Singleton and Rodger Smitherman.
Problem:

No doubt about it, this is a crucial vote for the cause.  We are so very close to success yet, it is still possible that last minute arm twisting by our opponents will rule the day.  Don't assume someone else will act if you don't.  We need everyone's participation.  We need your help now.  Note, you are invited to join us in the Senate Gallery this Thursday at 10:00AM to witness this historic vote.  Please come if you can.

Solution:
The solution is simple.  Just do what citizens in a democracy have always done, which is contact your Senator and let him or her know that you support SJR 42.  Your Senator wants to know how you feel.  Senators are all too aware of the problems with the 1901 Constitution.  When the special interest lobbyist come calling, they need to be able to say; "Sorry, but my voters want reform and I'm going to help them get it."

Action Needed:
A phone call to your Senator is most helpful.  Or, if you prefer, we will send a fax to him in your name

What other important bills will be on the chopping block table tomorrow?

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New PACT Bill, New Hope in the Legislature

by: mooncat

Wed Mar 31, 2010 at 19:53:02 PM CDT

Just last week it looked like a balk on the part of higher ed would kill any funding solution for the PACT program this session -- which would effectively kill the program.  Today there may be new hope springing from a different PACT funding mechanism proposed by Rep. Robert Bentley (R, HD-63) -- somewhere we have a video clip of Bentley talking about this plan, but I can't readily lay my hands on it found it, see below the fold.  His bill, HB775, passed out of the House Education Appropriations Committee today on a unanimous vote.

His proposal would use the money in Alabama's Prepaid Affordable College Tuition plan to invest in an annuity-like product that pays a fixed return for 20 years. The difference between the return and the amount needed for tuition each year would be borrowed from a state savings account called the Alabama Trust Fund. After about 10 years, the annuity's payment should exceed the tuition costs and could be used to start repaying the loan. The state government would cover any shortfall.

Word is that both higher ed and AEA can get behind this solution.  In addition to HB775, Save Our PACT is still lobbying hard for passage of SB162 which should hit the House next week.

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Auburn Trustees Vote Unanimously to Raise Tuition 13% - & Consider Building a Campus in CHINA

by: countrycat

Sat Mar 27, 2010 at 17:51:06 PM CDT

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!

 

Discuss :: (6 Comments)

Jeremy Sherer: State's Unclaimed Property Fund One Solution to Alabama PACT's Financial Problems

by: countrycat

Wed Mar 17, 2010 at 18:30:00 PM CDT

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.

Jeremy Sherer for TreasurerAs 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.

Speaking to the Madison County Democratic Women in February, Sherer explained how PACT is just ONE of the Treasurer's important responsibilities.  He also addressed the roots of the PACT crisis and the PACT board's failure to act proactively. 

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.

 

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PACT Bill in Senate. Is there cause for worry?

by: mooncat

Mon Mar 01, 2010 at 20:05:19 PM CST

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 learning shall charge the PACT plan or a PACT plan contract owner mandatory fees or tuition per credit hour in an amount exceeding the cost of mandatory fees or a credit hour as of September 30, 2009, except that an annual increase of the lesser of the actual annual tuition or mandatory fee increase or an annual tuition or mandatory fee increase of two and one-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 are unseverable. If any part of this act is declared invalid or unconstitutional, that declaration shall affect the part which remains. 

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?

 

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Public Hearing on PACT Bill Tomorrow

by: mooncat

Tue Jan 19, 2010 at 14:15:21 PM CST

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...

 

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Alabama PACT Timeline: 1990 - 2009. Who Said (and Did) What - and When

by: countrycat

Thu Jan 14, 2010 at 12:53:08 PM CST

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?

Kay IveyUsing 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.

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More Faces of PACT

by: mooncat

Thu Jan 14, 2010 at 12:40:32 PM CST

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?


 

Discuss :: (3 Comments)

The Faces of PACT

by: mooncat

Wed Jan 13, 2010 at 19:45:00 PM CST

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.

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Gov. Riley's final State of the State

by: mediagadfly

Tue Jan 12, 2010 at 19:45:26 PM CST

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

 

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Save Alabama PACT becomes a Political Force

by: mooncat

Tue Jan 12, 2010 at 08:35:45 AM CST

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. 

PACTs are Legally Binding contracts!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.

There's More... :: (2 Comments, 90 words in story)

Bradley Byrne's Bad Week Raises Questions About His Candidacy

by: countrycat

Fri Jan 08, 2010 at 15:52:39 PM CST

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.")

Bradley Byrne's bad weekYet 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.
Learn more on the flip...
There's More... :: (19 Comments, 808 words in story)

"When You Make A PACT...." Who'll Keep Alabama's PACT Promises?

by: countrycat

Wed Jan 06, 2010 at 15:51:08 PM CST

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!)

Alabama's Political Football - PACTMooncat 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?"

Candidate for Alabama Treasurer, Jeremy Sherer, is unequivocal in his support:

“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”.

Now, Congressman Artur Davis has weighed in and is urging voters to sign a petition urging Bradley Byrne to keep his promises:

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."

Yes it is, Commissioner!

There's More... :: (5 Comments, 432 words in story)
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