Re: Proposed Legislation

http://www.theplainsman.com/pages/full_ … open=&

"A bill to rescue the PACT program was given a second reading Thursday, April 17, before the Senate and is expected to receive a vote on Tuesday."

"The state education budget will be discussed in the Senate this week and further decisions will be made on this issue.

“The bill doesn’t say where the funding will come from, but that the legislature will fund it from whatever source is available,” Beale said. “The problem is K-12 doesn’t want it to come out of their funding. They want it to come from higher education funding, which was recently reduced. So, there is just no money available.”

Re: Proposed Legislation

If I'm not mistaken, there are only 7 days left in this session.  That's 1 for Senate approval, 3 for House, 3 days extra. So, if it hasn't passed the Senate by the end of 4 session days, we're out of luck on passage for this session.  Any input as to whether I'm correct?

"The Senate is in adjournment until Tuesday, April 28, 2009 at 1:00 p.m. "

It is on the agenda for
"IN THE LEGISLATURE OF THE STATE OF
ALABAMA
REGULAR SESSION 2009
SENATE CALENDAR NO. 22
TWENTY-FOURTH LEGISLATIVE DAY
04/28/2009
________________________
REGULAR CALENDAR
________________________"

Also, for those who want to listen to Senate streaming (I've never listened online):
http://www.legislature.state.al.us/audi … audio.html

Re: Proposed Legislation

The Senate is in adjournment until Thursday, April 30, 2009 at 10:00 a.m. SB581 is again on the agenda.

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I sent the following email to our listed :

I got a call from Kay Ivey, State Treasurer, this morning.  She indicated that SB 581 would be voted on by the Senate Thursday, April 30.  If passed, it will go to the House for vote.  She urged me to get in touch with my senator (we don't have one in Madison County yet) and reps, and for all of you to get in touch with your senators and reps and encourage them to vote for passage of this bill.  I don't think anyone knows how it will be funded yet, but it would have to come from somewhere if it's signed into law.  . A lot of you may disagree and, regardless, this is the time to call your senators and reps and express your opinion and/or support.

Personally, at this point, I think it's better than nothing.  My main fear is that if "something" isn't passed in this legislative session, there will be a run on lawyers, the consequences of which may put us all in deep trouble with no end in sight.  As much as I would like to have the perfect bill, I'm not sure it's possible???

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I think we really MUST call our legislators! Especially after seeing the following post yesterday that said Greg Wren didn't think anything would take place this sesssion!!!!
"At this point I do not believe there will be any legislation directed at the governance or legislative funding of the PACT program.
Independent analyses are being conducted to determine the financial status of the PACT program and in order to make better decisions going forward. As you are aware, no new participants will be added into the Alabama PACT program.
I am monitoring this matter and will continue to keep a keen eye towards any actions being taken. Thanks for taking the time to keep in touch. If I may be of further assistance please do not hesitate to contact me. "

I called Holley's office this morning to ask about that and was told they knew nothing about it.

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This is what I worte my senator:

Please vote for HB 581 tomorrow and allow the State of Alabama to honor Pre-Paid College Tuition (PACT) contracts. Visit our web site to see what your voters think www.savealabamaPACT.com.   This is a good bill, maybe not the best, but it would prevent lawsuits from draining the PACT and can be easily funded once approved.  This is the only financial vehicle many people have to attend college.  There are 49,000 future Alabama tax payers counting on your support and many PACT participants are from your area.  The PACT is a wonderful State sponsored program, but no less different than a mortgage or car payment.  I paid every penny on time in accordance my PACT contract.  Please do not let Alabama default on these contracts! 

Feel Free to cut and paste!!

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This is what I sent to my senator -- and representative....  fee free to borrow any part!

As a senator from Montgomery you probably have one of the largest constituent groups depending on you to stand up for their children who are attending college on the PACT program. 

Unless you are a PACT parent, I don't think you can truly understand the anguish we are going through  worrying what will happen if the PACT program is not funded and promises are not kept. We will be scrambling to get loans at a time when credit is not easy to come by. Some of our children will not be able to attend--or return to--school in the fall.

In 1991 we paid for a PACT contract that "guaranteed" four years of college education. When we signed the PACT contract, we didn’t think of our state officials as snake oil salesmen. We trusted that a state-sponsored program was a safer choice than investing in the stock market. After all, the state encouraged us to make this decision.

Our daughter is now a freshman year at the University of Alabama. She and other students like her are the bright lights of Alabama's future. What a horrible example it would be for them if their state leaders turned their backs on their youngest constituents.

Please help the state keep its promise! When SB 581 comes up for a vote, we hope that you will be a leader for our children.

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Not reaching my Senator yesterday, I emailed the following this morning to her office:

April 30, 2009

Alabama Senator Kim Benefield (D), 13th District

Senator Benefield,

I am disappointed to find that we have gotten no verbal or written position that you have taken on the Amended SB581 bill that originated in your Senate.

I have contacted your office twice to get such an opinion but have not been able to reach you or get a written response from your office.

It is our understanding that the legislature will reconvene this morning, Thursday, April 30, 2009 and that the bill will be reread.

Although it is not perfect and we do not specifically understand where appropriations are to come from to support the PACT failings,  we believe it has good substance, guarantees a PACT contract holder that tuitions will be paid and finds better management of the program.

The 49,000 PACT contract holders do deserve an answer before this year’s session ends in May. Resolutions are fluff and carry no legal weight. We need to pass good legislation that will guarantee ALL current contract holders what they were promised…a 4 year paid tuition at the college of their choice in Alabama.

Please do your part to make this happen…and be sure, the public understands the undertow of the political arena more than most are given credit for, they know that there are many forces at work here….but know this, Alabama as a State, failing to support the positive conclusion of the PACT program is not an option that any of us what to consider or endure…

Please speak loudly today and with a big sword….we are counting on you to do the right thing for PACT!

Regards,

Dr. Richard Huckaby
Cofounder, SaveAlabamaPACT.com

Posted SaveAlabamaPACT.com Forum April 30, 2009

Einstein once said, 'The definition of insanity is doing the same thing over and over again and expecting different results.'

Re: Proposed Legislation

HERE IS WHAT MY STATE REP WROTE TO ME:

"Higher ed is working hard to defeat it in the senate….I’d get your folks calling asap….I think it is in trouble due to opposition from Alabama and auburn"

rh

THIS DOESN'T SOUND GOOD AT ALL.

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I agree with Mary.  I spoke with a University of Montevallo professor today.  One of his summer classes was cut because of falling student registration.  As the recession drags on, the Universities will see a decline in the student population and will be hurt if SB581 fails.

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Got not response from Dixon but the following from Rep. Jay Love... Hope he stays the course when (if) it gets to his House!

I am hoping those bills will pass and I am committed to the state honoring it's responsibility.

Jay

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I have e-mailed my Sen. and Rep. and encouraged them to support SB581. I also called their Montgomery offices and left messages. I called the offices of Sen. Bedford and Sen. Holly the sponsors of SB581. I spoke with Sen. Holley's assistant. She said there are only 5 days left in this legislative session. Is there anyone else we should be contacting? Has SB581 even made it to the Senate floor? What else can we do? Who else should we contact? If the bill does not come up for a vote, is there any possibility that the Gov. could be persuaded to call a special session?

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Karen,
I would contact the Universities as well.   I see the following were opposed to SB581 from another post earlier;

Alabama - Bill Jones 334-242-2262
Alabama - Porter Banister 934-5193
Alabama - Gary Smith  256-824-6084
Auburn - Kathyrn Flynn 334-844-1036  ?

I e-mailed these individuals last night. I can not believe a public University would be opposed to any education program that allows more students to attend college.  They don't like the ideas of the tuition being frozen for three yeas for PACT students.  In this day and age, how many people work be opposed to have thier salaries froze for three years.  Most people would be glad to just have a job.  If anyone knows these people, call them and pursuade them to think of the University and students   




Kathryn Flynn Auburn (334-844-1036)

Re: Proposed Legislation

Dave, can you proivide the e-mail addresses for these individuals? Are they representatives of Alabama and Auburn universities? I will e-mail them also.

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Let's not forget to contact the PACT sub-committee developed to work with the legislature to resolve this issue this session.  We should flood Lt. Gov. Folsom, Treasurer Kay Ivey, and Chancellor Bradley Byrne and remind all of them of their commitments.  Finding a resolution is their responsibility as well as the legislature's.

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Thanks Dave for your strong voice and support...calling the lobbyists for the universities is a great idea. They need to hear something besides their own voices. I spoke with Jones personally...avidly against RB581 in any form.

Per my sentator on Friday, the Rules commitee has final say on which bills will be read on the Senate floor on Tuesday, May 5th when they reconvene. It is her understanding that this will be the last day for new bills this session, without a special session. She had no idea at the time we spoke whether SB581 was on any agenda to be read...but she felt it would, and others say their senators say similar...

Call...Call...Call your senators and let them know you demand that a SB581 version be read and passed this session...otherwise it will be next year before any chance of legislative action.

Call Senator Bedford's office and show support.

Call Senator Barron's office, Rules chairperson, and tell him how important a SB581 bill is and it must be read.

This is about it for this year in Montgomery if something is not passed.

Einstein once said, 'The definition of insanity is doing the same thing over and over again and expecting different results.'

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The following was sent by one of our emailers:
"The Legislative Office should be able to help
you on the progress of any bill, and also provide
you with names.  256 539 5441".

Let's inundate them with calls...dp

Re: Proposed Legislation

The following was sent by one of our emailers:

"I just saw this on the Treasury PACT web site. People, if legislation doesn't pass, and PACT board attempts to hold off 2009-2010 college tuition payments for whatever reason (they do have the money to pay for 2009-2010 as we all know), but if they don't pay, it's time to let loose our wrath. I'm not taking about lawsuits, at least initially; I'm talking about a staged march on the Montgomery capitol, and calling out the legislators, board members, etc. This is absolutely mind boggling, and frankly is starting to sound a little crooked."

UPDATE May 1, 2009
Again this week, there has been no movement on any legislation regarding PACT. Five legislative days remain. SB 581 requires a third reading in the Senate before traveling to the House. No other legislation has made this  much progress. Legislative members have been requesting information from the PACT staff
as they deliberate on the best course of action. Information has been provided timely.
There is no new movement on the two lawsuits.
High school seniors eligible to enter college this summer or fall semester will be receiving information from PACT.
PACT staff is preparing for payment of summer tuition benefits.

Last edited by dhpeacher (05-02-2009 4:36:16 pm)

Re: Proposed Legislation

Commenting on Mary's email of UA's Mr. Smith sent last night..... if they are proposing that we pay the difference  between the average tuition and the actual... the only ones who  lose are the UA, AU and Montevallo kids since other schools have already agreed to compromise with a freeze.
There is no compromise from these schools with the largest  PACT enrollment (and don't they benefit the most from the legislative budget?)

Does anyone know the number of PACT enrolles at those schools? I asked Ivey but have received NO response from her office.  At UA, the tuition totaled 6400 for 08-09; if they increase tuition by 10% that's only 640 per student... is that really someting they can't afford  to lose for 3 years?

I could go along with Mary's idea of paying the edifference IF we get a tax credit... however, I understand that the state is already having a hard time sending  refunds this year.

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I just read something rather startling on UAHuntsville's website.  They do not address our current controversy, however, in scanning their material on PACT, it plainly states that PACT covers tuition only and fees are the responsibility of the student.  Did I miss something somewhere?  I was under the impression that my five PACTS provided both tuition and fees!  Has anyone else run into this?  Am I crazy?

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That, on top of everything else is so disheartening.

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BamaPactMom said, "Does anyone know the number of PACT enrolles at those schools? I asked Ivey but have received NO response from her office."

From my post on 4/23/09:
"Approximately 10% of the students at Alabama and Auburn are on the PACT,
http://www.ache.state.al.us/Notes&N … olders.pdf

"About 63 percent of all PACT recipients attend Auburn or the University of Alabama's main campus in Tuscaloosa, according to the fund, making up 10 percent of each school's student body. Fitch said talks have focused on those schools."

Only 912 of the early contract beneficiaries are currently attending college.  How many later contract beneficiaries are currently attending?

http://m.montgomeryadvertiser.com/apps/ … ate=wapart

"Of the 6,292 who signed the "guaranteed payment" contract, 912 are currently in college, and 5,380 are not yet in college."

http://www.treasury.alabama.gov/pact/Do … 090316.pdf

There is no way that we can figure exactly how many have already graduated or used their benefits because they could be purchased through 9th grade, and the report doesn't show cancellations.  It appears there were appx. 75,999 purchased from 1990-2008 (feel free to correct my figures if my computer calculator keying is incorrect).  There were 50,017 active contracts per this report at the end of 2008.  If we use basic allocation, 912 currently enrolled of original 6292 "guaranteed" contracts, then there could be appx. 7250 students currently enrolled including the original contracts (912 / 6292 = x / 50,017).  Again, using their 63% rate above, 7250 * .63 = 4568 attending UA or AU.

http://oira.ua.edu/factbook/2007-2008/2007p002.pdf
UA 2007-2008 "FTE Enrollment: 23,898"

http://www.auburn.edu/admissions/auburn … ofile.html
Auburn "Fall 2008 Enrollment Data...
Total: 24,530
Undergraduates: 20,037"

Using the 10% statistic quoted above, 23,898 + 20,037 = 43,935, and 43,935 at 10% would be 4,394.  That would be pretty close to the 4,568 using the other method.

So, I guess we can assume between 4400 and 4550 or so are attending Alabama (not including UAB or UAH) or Auburn.  Note that the statistics do not clarify if they are only including Tuscaloosa or the other campuses.

dhpeacher said, "I was under the impression that my five PACTS provided both tuition and fees!  Has anyone else run into this?"

Mary said, "Fees are not paid by PACT (e.g., computer fees, lab fees, required application fees, etc).  When my son was thinking about going to a community college this summer, I called PACT and they said that there would be no problem with the "eight semesters of fees" being reduced too soon because UA does not receive fee money (we paid all of the fees).  SO, I don't know if that pre-arranged $6400/year between UA and PACT is supposed to cover "fees" also or not.  I know that we had to pay for every "fee" billed."

From my experience, having dealt with both community college fees and four-year university fees on my daughters, the community college fees are mostly covered, NON-inclusive of parking or certain computer fees.  Four year university fees are NOT covered. 

http://www.treasury.alabama.gov/pact/Do … ndbook.pdf

From page 4:
"Qualified fees are specifically listed by category, as follows: Building fee, Facility fee, Technology fee, Learning Resource Fee, Administrative Fee, Registration Fee, Instructional Fee, Library Fee, Bond Reserve Fee, and General University Fee. These are the only fees that will be paid by PACT."

Additionally, it does NOT cover room, board, Dining Dollars ($300 per semester if taking over 9 semester hours at AL-required), parking permit (UA=$175, last year, I think), $220-2009-10.  So, figure the only thing at a four-year university being paid by PACT would be the $3,520 according to their estimates for 09-10, leaving a balance of $6042 PER SEMESTER.  If they pay the 2008-09 average in-state rate of

http://cost.ua.edu/undergraduate-budget09-10.htm
Alabama Resident
Tuition Estimate1          $ 3,520.00
Course Fees2                $  250.00
Dining Dollars Account3 $  300.00
Meal Plan4                    $ 1,247.00
Residential Hall Room5  $ 3,475.00
Parking Decal6               $   220.00
Books and Supplies        $ 550.00

Totals7                            $ 9,562.00

ALSO, FYI-------------------------------------------------------------------------

http://www.treasury.alabama.gov/pact/Do … ndbook.pdf
Page 7
"Payment for out-of-state and private schools is based on this weighted-average tuition. The weighted-average rates change January 1 of each year.
Rate per semester hour: $181.67"

If they pay the 2008 average in-state rate of
$181.67 x 12-17 hours (AL's current full-time),
$2,180.04 to $3,088.39 per the proposal,
we would owe an additional $1,339.96 (12 hours) to $431.61 (17 hours) per semester.

Using 15 (average full-time hours):
PACT, under the proposal, would pay $2,725.05 of $3,520 or a shortage of $794.95 for tuition. 

Since most students average 15 hours per semester
1.  Figure up your state tax from your 2008 tax form,
2.  Multiply $794.95 x 2 semesters totalling $1,589.90 shortage on tuition (and, for personal budgeting, add the $12,084 in additional estimated costs),
3.  Multiply by number of students.
COMPARE!!!

I'm sorry, but THIS IS NOT THE TUITION PACT I BOUGHT!!!!!

Re: Proposed Legislation

Oh my gosh Sheila, you have done so much work.  I did dig out my 1996 PACT booklet and found the following on Page 3 under Questions & Answers:

Q.What does the contract cover?
A. "The PACT contract covers tuition and mandatory fees."  (farther down in the answer: "Mandatory fees are fees which all students are required to pay as a condition of enrollment.  The type of fees considered mandatory are defined by each college and university."

I am so tired of this.

Last edited by dhpeacher (05-03-2009 11:49:01 pm)

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That's another 1 of those things that have somehow managed to get changed over time.  I really don't like this!

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In my opinion, one important aspect of coming up with a solution to this problem is to include the high ed lobbyists in crafting whatever legislation is developed.  They are important power brokers with quick access to influential people - not only the legislators, but also the boards of trustees and powerful alumni of the largest institutions (AU & UA).  They also have $$/perks to influence votes.  Their influence is often not recognized because they usually operate behind the scenes  . . . below the radar.  You rarely see them quoted in the paper or making public statements.  Since it is clear that they have a problem with the current legislation, we need to contact them to see what it would take to be part of the solution - if we can get them on our team, everybody wins.  If they can't be on our team under any circumstances, we need to know that.