by: countrycat

Wed Jul 29, 2009 at 07:57:55 AM CDT

The state can likely save the limping Prepaid Affordable College Tuition program, a high-ranking state investment official said Monday.

Retirement Systems of Alabama Deputy Director Marcus H. Reynolds said he bases his opinion on results of a study of the program’s finances and future projections by an actuarial firm.

But the deal is not done yet.

“It is going to take a collective effort to solve this, but it is do-able. We didn’t know before if it was possible,” Reynolds said. “It won’t be easy, but there is a possible solution. We got some good numbers from the actuarial study that make us think it can be done.”

I’m intrigued by the RSA acturial study, because the reports the PACT Board has gotten from their actuary over the past 5 years have been filled with more doom and gloom than one of Jeremiah’s (the prophet) sermons.

So PACT maybe can be saved?  GREAT!  But there’s a catch – a big one:

Reynolds said a successful plan for PACT hinges on Riley, the Legislature and representatives of K-12 and universities reaching mutual agreement on a plan.

Oh Lord.  We’d depending on the Legislature and a cash-starved University system not inclined to be cooperative.

Universities hit by funding cuts for higher education haven’t been inclined to work with either the PACT board or Legislators to discuss any role in helping the program.

In fact, a University of Alabama official told Patti Lambert (one of the leaders of the Save Alabama PACT group) that loss of PACT students wouldn’t hurt the university.  In fact, it would improve the school’s financial position because there’s a waiting list of out of state students who pay much higher tuition than in-state students.

Your tax dollars at work, folks.  We’ve come to the point where state universities are willing to toss in-state students overboard for the extra cash they get from out-of-state and international students.

Still, it’s good to finally hear even a snippet of good news about the program.

Jeremy Sherer, candidate for the Democratic nomination for Alabama treasurer, issued a statement yesterday about the RSA announcement:

Commenting on the reports coming from RSA, concerning PACT, Democratic candidate for Treasurer, Jeremy Sherer said, “There is no question that poor financial markets and years of negligent management have placed PACT’s future in a very precarious position. However, I do believe that PACT is salvageable if our state leaders and colleges can agree that the long term vitality of PACT is in Alabama’s best interest”.

Sherer has been and outspoken advocate of Save Alabama PACT, a group of citizens who advocate on behalf of PACT contract holders.

Representative Craig Ford (D-Gadsden) is also urging the state government to act:

Rep. Craig Ford, D-Gadsden, said Tuesday he wants legislation to fix the financially ailing Prepaid Affordable College Tuition plan in a special session that Riley may call.

“I’m trying to get the governor to put the PACT legislation in the call,” Ford said.

I don’t see much chance of that happening though.  The PACT board meets again on August 19th, and the RSA report is a huge agenda item.  I just don’t see Riley brining this up in a special session before that meeting.

Still, it’s good to see that at least some legislators are interested in fixing the program.

Remember: the next meeting of the Alabama PACT board is August 19th in Montgomery.  It should be a doozy!