December 29, 2009
Kay Ivey, State Treasurer, called a special Board of Directors meeting held today, at 8:00 AM. Save Alabama PACT leaders were not aware of this meeting to either announce this meeting, nor attend this meeting and we know the following from our membership that were in attendance and through media releases thus far. We understand that the State Treasurer’s office is to release minutes to this meeting on their website in the next 24 hours.
What we understand as of now:
The PACT BOD voted not to change the current investment portfolios.
The Board of Directors did vote to change the tuition payment application manner. The board agreed that starting fall 2010 semester payments of tuition will not be paid to the universities at the actual rate of tuition but at a maximum rate that will be calculated as the average of tuition for all collegiate institutions statewide. There is an estimate of a ‘gap’ of $500/semester (for Fall 2010 semester) for parents of PACT students to pay in addition to other fees, etc. to cover the tuition rates. This is known to immediately affect PACT parents with students who will attend the following colleges in Fall 2010: Auburn University, University of Alabama, University of Montevallo, UAH, and Jacksonville State (these we know at this time - more are possible).
The 'gap' being the amount between what the State Treasurer’s office will pay per hour on the PACT program and the cost of tuition per hour from the colleges and universities will grow as years continue as the average rate of tuition will remain at the Fall 2010 rate. The parents will continue to be responsible for this additional tuition costs that is not covered by the PACT program.
This change in the 'contracts' must pass in Alabama courts in Montgomery -- process of filing and getting a court date, etc. will be 2-3 months.
This plan will also require $236 million from the legislature over the next two decades as well to survive even with this change.
As Save Alabama PACT we do not understand the basis of the board meeting two weeks before the 2010 legislative session to make this potential change in the PACT program. We are seeking legal advice on behalf of the group and we will report to you on our discovery there. We will do whatever it takes to protect our rights as PACT holders and we will not give up on having our contracts honored and ALL honored by the State of Alabama.
We certainly hope that today's vote of the PACT BODs was not a scare tactic to try and inhibit our efforts and encourage contract holders to withdraw from the program. We can not help but to see this as an attempt to weaken the number of PACT contract holders and reduce the number of Alabama children that will have to be educated by this program. We are still here and working for a positive solution, but will seek legal guidance and do what is needed to protect our children.
Please remain with us in our fight to save this program – do not let our efforts to date be weaken by today's ill-advised resolution, but may this only strengthen our fight! Be prepared to join us in Montgomery to show your support of the program and GET the support of the legislature on January 12, 2009 – 9 AM on the steps of the State House. Wear your green shirts!
Save Alabama PACT Officers
Patti Lambert, Dr. Richard Huckaby, and Rebecca Thrasher
www.savealabamapact.com