by: countrycat

Fri Sep 11, 2009

“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.”

No, nothing like that Cowgirl!  Just a PACT board that was warned in 2005 that the program wasn’t financially viable and an Alabama Treasurer who glossed over concerns about the PACT program to get re-elected. 

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.

 “…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.”

As a candidate to succeed Kay Ivey as Treasurer of Alabama, I was disturbed in reading the Shelby County Reporter’s article regarding Ivey’s speech to the Calera Chamber of Commerce. Ivey’s statements to the Chamber bordered on disingenuous due to her glossing over the financial predicament of Alabama ’s Prepaid Affordable College Tuition Program (PACT).

Ivey’s assertion that PACT “is going fine” is formed in either ignorance or her own political protectionism. Ivey states, PACT is financially viable until approximately 2015. However PACT has financial obligations until 2032, and approach nearly one billion dollars. Simply because Alabama can afford the costs of PACT today, yet presently has no ability or plan to satisfy the increased costs of tomorrow, does not warrant Ivey to say that everything “is going fine”.

Treasurer Ivey did preface her contentment with PACT’s present status in stating that all should be well “unless the market goes down further”. However, this past June the Retirement Systems of Alabama (RSA) stated that the nation’s stock market would have to more than double its volume to approximately 20,000 to recover the more than $300 million in PACT devaluation that occurred under the oversight of Ivey.

Ivey further misinforms by stating that RSA’s study on PACT’s viability found no evidence of financial mismanagement on Ivey’s part. However, RSA’s study did not evaluate Ivey’s past management of PACT. Though, the RSA study did vary numerously its forecasts of future costs and earnings versus those used by Ivey in her financial management of PACT.

As Alabama ’s next Treasurer, I will be committed to honoring Alabama ’s PACT commitments and managing PACT more effectively than Treasurer Ivey. I will also speak with greater candor, in a spirit of principled, public service rather than the political protectionism evidenced by Kay Ivey in Calera.

“Speak with greater candor…”  Works for me.  Granted, Cowgirl Kay has set the bar pretty low, but I have confidence in Sherer.

I’ve said it before, but again:  You go, Jeremy!

Want an Alabama Treasurer who’s committed to the state?

• Saving the PACT program
• Encouraging investment in local communities,
• Dedicated to “best practices” in financial management
• Promoting local banks with community ties instead of multi-nationals like Wells Fargo who drive local businesses like Meadowcraft into bankruptcy? 

Visit Jeremy Sherer’s Web site and donate to his campaign!