1

(4 replies, posted in Madison County Group Forum)

It may be true that Kay didn't have to send out the Feb letter but felt a "moral obligation to do so." But remember that this is the same woman who a month previously had urged the parents and grandparents of Andalusia to purchase PACTS, telling them that their very own Ricky Jones (who failed to make the March meeting) was vice-president of the board!

Did she feel a moral obligation to do that too?!!  The old actions speak louder...

No, the cynic in me thinks she sent the letter because she was getting ready to run for governor and knew that as soon as she did she would come under a lot of scrutiny and the state of the fund would be discovered. Her hope, I think, was that she could have announced the problem, the Legislature would have solved it for her, and she would announce her candidacy as the hero who saved the PACT. But she left it too long. She should have sent the letter in December so that the Legislature would have had the whole session to work on it. But all that is of course just my imagination at work.

But that she says she was under no obligation to inform PACT owners of state of fund is I think very revealing because it demonstrates again that it is NOT a 529 investment plan. Surely if it were a risky business she'd be obligated to issue annual reports, right?

Something new for me to look into.

2

(1 replies, posted in Committee Discussion Forum)

I started on this. See http://pactsandfictions.wordpress.com/2 … em-vs-cya/
about WV and SC's programs [now closed]
and this, about Florida's:
http://pactsandfictions.wordpress.com/2 … -florida/.
I plan to continue looking at other states' programs.

I like to think the best of people, but I think now too that we must bear in mind that we are swimming with the sharks.

It may be true that Kay didn't have to send out the Feb letter but felt a "moral obligation to do so." But remember that this is the same woman who a month previously had urged the parents and grandparents of Andalusia to purchase PACTS, telling them that their very own Ricky Jones (who failed to make the March meeting) was vice-president of the board!

Did she feel a moral obligation to do that too?!!  The old actions speak louder...

No, the cynic in me thinks she sent the letter because she was getting ready to run for governor and knew that as soon as she did she would come under a lot of scrutiny and the state of the fund would be discovered. Her hope, I think, was that she could have announced the problem, the Legislature would have solved it for her, and she would announce her candidacy as the hero who saved the PACT. But she left it too long. She should have sent the letter in December so that the Legislature would have had the whole session to work on it. But all that is of course just my imagination at work.

But that she says she was under no obligation to inform PACT owners of state of fund is I think very revealing because it demonstrates again that it is NOT a 529 investment plan. Surely if it were a risky business she'd be obligated to issue annual reports, right? Something to look into...

For two of the three past Fridays, the message has been "no new information to report."

Not exactly indicative of due diligence, is it?

Read more here:

http://pactsandfictions.wordpress.com/2 … to-report/

I've been looking at what other states that offer prepaid college

tuition programs are doing about meeting their obligations 

these days. 

West Virginia discontinued enrollmments in 2003 and set up a Prepaid Tuition Trust Escrow Account in case of future unfunded liabilities. (Imagine that! Planning rather than scrambling!)

South Carolina discontinued enrollments last summer and limited tuition increases  for prepaid students to 7% a year.

Read more about this at my blog, My PACTs and Their Fictions: http://pactsandfictions.wordpress.com/2 … em-vs-cya/