MONTGOMERY – With the start of the first Legislative session of 2010, Democratic candidate for Treasurer, Jeremy Sherer declared the need for urgency on the part of the Legislature in developing a solution for PACT. “For the sake of upholding governmental integrity and to limit any legal liability from PACT, it is imperative that the Alabama Legislature reiterates the state’s commitment to honor its contractual duties under PACT”, said Sherer.

Continuing, Sherer stated, “The State of Alabama contracted with thousands of citizens for the complete funding of a future college education in return for their advanced payment of tuition set at present day prices. Nothing short of complete funding for PACT contracts can be returned by the state, less opening the state up to legal liability”.

“I continue to support Rep. Greg Wren’s legislation that declares the state’s full commitment to honoring all PACT contracts. Further, I believe the Legislature should develop a strategic timeline for the resolution of PACT obligations, which will not completely lapse until 2032.”

“Through improved management, cost reduction, and use of non-budgetary funds such as Alabama’s Unclaimed Property Fund, the state can uphold its true obligations to all 45,000 PACT families.”

“The solution proposed by the PACT Board on December 29^th, betrays PACT contract holders while compromising the integrity of the state. Thus, the Legislature now must intervene and do the job that Treasurer Kay Ivey has proven herself incapable of doing, which is to develop a roadmap for solving PACT while protecting Alabama taxpayers.”

“Honoring PACT is a legal duty, and does carry economic costs during strained times. However, it is also the right thing to do.”

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

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