Guaranteeing Prepaid Affordable College Tuition Plans

I believe that the State of Alabama has a moral and a legal obligation to honor the PACT program contracts purchased by Alabamians.  Our citizens invested in this program believing it was backed by the full faith and credit of the State of Alabama. On February 10, 2010, I voted in the House Education Appropriations Committee to fully fund Alabama's Prepaid Affordable College Tuition (PACT) program. The funding to pay for the bill will become available once capital improvement bonds are redeemed. 

On March 31, 2010, the House Education Appropriations Committee unanimously passed Dr. Robert J. Bentley's bill to fully fund the Alabama Prepaid Affordable College Tuition (PACT) program (HB 775). HB 775 is an amendment to the Alabama Constitution to guarantee existing PACT contracts are fully funded.  The amendment prohibits new enrollees, requires PACT to use its money in guaranteed investments, and authorizes borrowing. Voters must approve the amendment in November.

Dr. Bentley stated, "I introduced this constitutional amendment to guarantee PACT funding because I believe Alabama has a moral and legal responsibility to honor 100% of these contracts for 100% of the participants. I have been at the forefront of the effort to save Alabama's PACT, and believe the legislature needs to act now to fix this problem instead of letting our prior attempted fix languish without resolution in the Senate.  I want to emphasize that this is a loan to the PACT and not a bailout.