MONTGOMERY – Jeremy Sherer, Democratic candidate for Alabama State Treasurer, spoke toapproximately 150 families who attended Wednesday’s Board of Directors meeting for Alabama’s Prepaid Affordable College Tuition.

“I am committed to honoring all 48,000 PACT contracts”, Sherer told attendees of the PACT meeting. “The study performed in August by the Retirement Systems of Alabama stated that it considered all 48,000 PACT agreements to be legally binding contracts between beneficiaries and the State of Alabama. I share RSA’s opinion, and believe that the State of Alabama should act promptly in providing PACT families assurance that their contracts will not be breached”.

“Alabama’s next Treasurer can directly affect the future of PACT in two ways, reducing administrative costs and making better investment allocations. I will seek to increase the return on PACT investments and to reduce the annual administrative costs of PACT, which presently account for nearly four million dollars in annual PACT expenses. Moreover, I assure you that I will actively manage PACT with the due diligence and forthrightness you expected when you first entrusted the Treasury with your children’s and grandchildren’s college savings.”

Sherer advocated utilizing some of the approximate $400 million that resides in the Unclaimed Property Fund, which is managed by the Treasurer, as bridge funds to stabilize PACT investments until a long term financial solution can be enacted by the Legislature.

Sherer also suggested that Alabama explore new revenue options to sure up PACT.

“Alabama’s budgets are in a state of proration, resources are limited, but your cause is just. In today’s environment of proration, I believe tapping funds from the Unclaimed Property Fund is the most politically efficient and financially sound means for saving PACT”.

“Due to the loss of federal stimulus funding in the upcoming year, Alabama’s finances will get worse before they get better.”

“I believe PACT families and all Alabamians need to seriously consider passing legislation similar to the recently proposed Sweet Home Alabama bill or an education lottery to realize a more expedient solution to our state’s long-term funding shortfalls.”

Please contact Jeremy Faulkner at (205) 446-1342 with any questions.