MONTGOMERY – Speaking in regards to the Alabama State Senate public hearing on Senate Bill 162, which would route debt service returns from education bonds to the beleaguered Alabama Prepaid Affordable College Tuition Program, Sherer stated, “I supports the intent of the Senate bill and am committed to honoring all PACT obligations, but I feel the operational woes of PACT must fixed before routing any state funding to the program.”

Continuing, Sherer stated, “PACT was poorly conceived in its formation and was recklessly managed during a national financial crisis.”

“As Dr. Hubbert stated at the public hearing, PACT investment returns can and must be improved, along with operational costs being reduced.”

“Further, I remain confident that through closing financial loopholes like those which allow out of state students who reside in counties that are within 50 miles of an Alabama higher education campus.”

“Beyond reducing costs, improving investments, and closing financial loopholes that affect higher education funding, I believe there are ample non-budgetary resources – like Alabama’s $400 million, Unclaimed Property Fund – that would create the necessary funding to honor all PACT obligations”.

“As the Retirement Systems of Alabama found in its 2009 study of PACT, I believe there is a legally binding obligation of Alabama to honor all PACT contracts.”

“However, I do not support hastily pumping state dollars into PACT until necessary reforms and policies are put in place to remedy the damage cause by Treasurer Ivey’s oversight of PACT. We must first give these 45,000 families Alabama’s full faith to support PACT, and assess where any necessary supplemental PACT funding should come from that least impacts our already strained state budgets and taxpayers”.

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

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