Tuesday evening, I attended the initial meeting of the Montgomery County Chapter of Save Alabama PACT. The meeting was attended by a strong, vocal crowd of nearly 40 concerned citizens and PACT contract holders.

Much of the meeting was devoted to question and answer regarding what PACT families do now. Emphasis was placed on lobbying the legislature to uphold the contractual obligations of PACT, and to give Alabama higher education institutions the necessary incentive to stabilize tuition rates.

Once again, much discussion was had regarding the upcoming actuarial report from the Retirement Systems of Alabama (RSA) regarding the longterm viability of PACT. However, in my opinion, the report’s contents hold little promise unless state tuition is stabalized. Last week, as state university raised its tuition by more than 21%. PACT cannot be successfully managed without predictable, reasonably stable rates of tuition – meaning, Alabama cannot predict what PACT investments return must be unless the state knows what prospective college costs will be). In turn, colleges must have stable, predictable funding from the state government in order for them to be able to adequately manage their budgets.

Representative Jay Love and I both had an opportunity to address the attendees. Both Jay and I emphasized that the solution of PACT is not, and must not be a partisan issue.

I instructed the attendees to make use of the months ahead. The earliest any legislative remedy will be provided for PACT will be the January 2010 session. PACT families must mobilize, lobby legislators, and defend their moral and contractual high ground from antagonists.

Further, I commented on suggestions from others in the state that the financial solution for PACT be taken from the Oil and Gas Trust Fund. Personally, I am opposed to this suggestion. The Oil and Gas Trust Fund feeds into the Alabama Trust Fund, which in turn feeds into the General Fund that pays for programs like the Children’s Health Insurance Program and Medicaid. Indirectly targeting poor, sick children to bear the cost of PACT is not a moral or politically feasible solution to PACT.

Presently, considering PACT assets and yearly disbursements at today’s tuition rates, PACT is solvent for approximately another ten years, though its obligations reach until 2030.

Alabama must first ensure PACT families that the state will honor its contractual obligations to all 48,000 families. Then, the state should take action, in an unhasty fashion, towards constructing a long term fix for PACT.