Most bills have a "severability clause." It just means that if any portion is declared unconstitutional (invalid), that section ONLY is removed.  An "unseverability clause" would throw out the whole thing if any portion is unconstitutional.  For example, if the tuition cap is ruled unconstitutional, the whole bill / law would be thrown out, not just the tuition cap, and...there would go the funding...out with the bathwater (said sarcastically).

Rebecca Thrasher SAVE Alabama PACT!: Make that Legislature back in session...
about an hour ago · appx: 1:56 pm

McLauglin discusses the ETF fund and the importance on the inseverability clause ...focusing on the future ETF dollars and its projected to have reduced costs already.
about an hour ago Ford - if we adopt this ammedment - the PACT program is back to the PACT board - and we will have refunds to parents, and we need a solution THIS session!
about an hour ago Voting...we want Aye - 57- ?? it passed.Cheering in the gallery
about an hour ago

Rebecca Thrasher SAVE Alabama PACT!: Updates have been posted -- we are currently being held up by a Joint Session of the House/Senate.

The unseverability clause was removed - by Hubbard of Auburn.
3 hours ago
Christa Norris Davis Thank you for the updates. I had to leave for another appointment.
3 hours agoGwen Braden Rebecca - doesn't that kill the funding?
3 hours agoShannon Robbins Dalton Will be checking in every so often...Thanks for the updates and for fighting for My child's education
3 hours agoPaul Mcfillin Please explain "unseverability clause" Is that good or bad for PACT families?
2 hours agoJami Gigis Wetzel I'm not sure what the unseverability clause means. Will you explain it when you have time?
20 minutes agoJami Gigis Wetzel Also, what is the ETF fund?
19 minutes ago

These are three questions which I would like answered:

1.  If the colleges are so concerned about discrimination in reference to different tuition rates, why are there instate and out-of-state tuition rates?

2.  If the state funds K5-12 with our taxes and students attend free (per se), and they also fund instate colleges, why can our children not attend college FREE?

3. Why is Mississippi considering changing to a single tuition rate for instate as well as out-of-state students because they are losing so many to other states, such as Alabama, with the "gift" the Alabama Legislature has given in the State Code (thereby controlling tuition costs in lieu of the college trustees doing so, which is one of their very verbal arguments against some of the proposals)?

Mississippi Senate measure looks at in-state tuition for all » Memphis Commercial Appeal Mobile

http://m.commercialappeal.com/news/2010 … re-waives/

Sheila

Me, too. I've got 3 down there.

Mary said, "When this was getting discussed about PACT paying the average tuition-you were the one I was thinking about (won't you have 3 in college at one time?).  That's a lot of up-front money to come up with -even with parents giving in by getting the tax credit."

You're right, Mary.  I will have 3 at UA in the fall. 

If my figures are correct (and the rates stay close to my estimates), I would have to pay UA $2,384.85 in additional tuition above the PACT for the fall, 2009 PLUS other expenses.  Since their own 2009-10 estimate is $12,084 in additional expenses for the year per student, that would be $2384.85 + $18,126 = $20,510.85 for the rest of the year!  Who do they think we are??? Warren Buffett?

So, would I just stop having state tax cut out of my check and send it to the school??? I don't think they would allow this, and I do NOT agree with this.

My husband is retired, so his RSA payment has already been pre-taxed.  I think most teachers also paid state taxes on their state retirement prior to retiring, as well as many others who have retired.  This reduces the amount of state taxes owed so it wouldn't work unless we could get the whole amount paid to the school refunded if it was greater than the tax liability and withholdings.

If we purchased a tuition package, it should pay tuition, not some portion of it just because our kids choose to attend a state school which provides their major!  We are not choosing private school, but a STATE school.  I would HAVE to fight this.  It is entirely ridiculous!

I'm sure there are other people out there with students who had budgeted and planned for the tuition to be paid in full, and this would throw everything we had planned all those years into turmoil!

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!!!!!

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

4/23/09 - No cigar.  Not handled today.

FYI From ALISON

IN THE LEGISLATURE OF THE STATE OF
ALABAMA
REGULAR SESSION 2009
SENATE CALENDAR NO. 21
TWENTY-THIRD LEGISLATIVE DAY
04/23/2009
________________________
REGULAR CALENDAR
________________________

By Senators Bedford and Holley (With Substitute):
SB581 Relating to the Alabama Prepaid Affordable College Tuition (PACT) Program; to amend Sections 16-33C-1, 16-33C-2.1, 16-33C-3, 16-33C-4, 16-33C-5, 16-33C-6, 16-33C-7, 16-33C-8, 16-33C-9, 16-33C-10, and 16-33C-13, Code of Alabama 1975, and to add Sections 16-33C-5.1 and 16-33C-6.1 to the Code of Alabama 1975, to transfer the administration of the PACT Program, including existing rights, contracts, and obligations, from the State Treasurer to the Teachers' Retirement System of Alabama; to suspend new enrollments in the program indefinitely and to ratify and confirm actions taken pursuant to the current suspension; to define the term tuition and qualified fees and specify the duties of the Board of Control regarding tuition and qualified fees; to authorize the State Treasurer for the ACES Trust
Fund and the Board of Control for the PACT Trust Fund to solicit and accept funds for the PACT Program from the State of Alabama, the Legislature, and any other available source of funds, public or private; to require the Governor include in the budget, and the Legislature to annually appropriate necessary funds, from any available funding source, to ensure that the PACT Program meets its obligations and maintains actuarial soundness for the life of the program; to provide upon dissolution that remaining funds be used to repay funding sources for advances to the program, rather than to the Alabama Commission on Higher Education for the establishment of a scholarship program; to provide upon dissolution of the ACES Program that remaining funds be deposited into the ACES Opportunity Enhancement Fund,
in lieu of being treated as abandoned property; to require each eligible educational institution to accept the total tuition and qualified fees paid for PACT beneficiaries as payment in full; to prohibit discriminatory practices by institutions; and to provide for implementation and monitoring by the Alabama Commission on Higher Education, upon the advice of the Board of Control.
Finance and Taxation General Fund
Number of amendments: 0
- 161 -
FISCAL NOTE
Senate Bill 581 as introduced:
(1) immediately transfers from the State Treasurer to the Teachers Retirement System (TRS) Board of Control all matters of any nature whatsoever pertaining to the administration of the Alabama Prepaid Affordable College Tuition (PACT) Program;
(2) provides that the Board of Control may, in addition to all other powers previously granted to the PACT Board, adjust the terms of existing PACT contracts in order to preserve the actuarial soundness of the PACT
Trust Fund;
(3) indefinitely suspends new enrollments in the PACT Program;
(4) requires, for the life of the PACT program, an annual appropriation from any source of funds to be requested by the Governor and made by the Legislature in amount that is certified by the TRS Board of Control to be actuarially necessary, with such appropriations to be repaid by excess PACT Program operating revenue;
(5) requires, from now until the end of the 2012 Fall Term, eligible institutions to accept as payment in full the amount of tuition and qualified fees paid by the PACT Program for the 2009 Spring Term, with the amount of such tuition and qualified fees thereafter determined by the TRS Board of Control based upon the investment performance of the PACT Trust Fund;
(6) provides that the Legislative Council and the Legislature can recommend or enforce penalties, including appropriation reductions and punitive payments, upon any eligible institution found by the Alabama Commission on Higher Education (ACHE) or the Examiners of Public Accounts to either be non-compliant with the tuition-related provisions of this bill or have engaged in discriminatory practices against a current or potential PACT beneficiary;
(7) provides that, upon dissolution, all PACT-related fund balances would be transferred (after all costs and liabilities are repaid) to the Education Trust Fund rather than to ACHE;
(8) provides that the Alabama College Education Savings (ACES) Program shall continue to operate under the oversight of the State Treasurer and the current ACES Board;
(9) provides that, upon dissolution, all ACES-related fund balances would be deposited into the ACES Opportunity Enhancement Fund rather than administered in accordance with the Alabama Uniform Disposition of Unclaimed Property Act; and
(10) appropriates to the State Treasurer, in both FY 2009 and FY 2010, any amounts necessary and available in both the ACES Administrative Fund and the ACES Opportunity Enhancement Fund.
As substituted and as amended by the Committee on Finance and Taxation General Fund:
(1) eliminates the requirement that the PACT Program repay from its excess reserves any funds provided to the program upon the recommendation of the Governor and appropriation by the Legislature;
- 162 -
(2) removes as one of the enumerated powers of the TRS Board of Control the ability to define the terms and conditions of PACT contracts;
(3) provides that ACHE shall issue tuition-related compliance reports annually rather than quarterly; and
(4) provides that no PACT contract in force as of the effective date of the act shall be altered or changed in any way, and all benefits, promises, and/or guarantees included in such contracts shall be paid, provided,
and/or honored in full.
____________________________
Roger Bedford, Chairperson
Finance and Taxation General Fund
_____________________________