Sheila, The "gentleman" who proposed doling out tuition based on the median  was Tom Broughton, a banker from B'ham.
From my side of the room, he didn't look too happy when told he was too late to bring that up this year. However, I think we can expect that to come up again if the Legislature doesn't handle this problem.

off al.com

PACT assures Alabama parents of tuition money for fall, spring
Posted by Bob Lowry May 20, 2009 3:06 PM

MONTGOMERY, AL - The PACT Board voted today to follow the language of a legislative resolution, which state Treasurer Kay Ivey predicted would lead to secure stable funding for the prepaid college program.

The program's actuary told the board the fund has enough money to pay tuition this fall and next spring. The PACT Board voted unanimously to assure parents that it will keep paying tuition this fall and next spring.

 
The Legislature adopted a resolution on its final day Friday, asking The Retirement Systems of Alabama to conduct an actuarial study of the fund.

The report to Gov. Bob Riley and the Legislature is expected within 30 to 45 days.

Ivey said the PACT Board would encourage legislators to draft legislation with effective funding solutions to fund all PACT students in time for it to be pre-filed before the 2010 legislative regular session begins in January.

What weight does a resolution carry?

What is the next step for a resolution. ...Does it have to go to the house?
Does this mean they've dropped the idea of working out the House bill?

It would be nice if Kay spelled out what their choices are!

Is anybody in the group able to be at the Legislature lobbying for the cause?

Either Kay and the Pact board are trying to goad the legislature into action or they are about to pull the biggest con in Alabama state history!!!!! They want us to walk away from a committment the STATE signed. I Don't Think So.
They tried to pawn it off on the legislature and now looks like they want to dig their political graves.
We made ourselves perfectly clear at the 1st and 2nd meeting --- DONOT DISOLVE thePACT program --- NO Child left behind!

I'm afraid my comments about Holmes bill  were misunderstood. ... I guess I didn't state clearly enough that what might be good for some of us is NOT good for all. ..and that is NOT acceptable!

we ARE all of the same mind... and stand together!

Feeling very discouraged... sent the following to Folsom's man, Chip Hill after reading his response to Dr. Huckaby...

While I appreciate your comments, I wanted to share my concerns that they raise. I hope you will in turn share them with Mr. Folsom.

While you may consider the PACT problem a short term crisis, those of us who have children currently attending college are not in a position to share that view. It will be a major crisis for families depending on PACT to pay tuition in the upcoming shool year.

Yes, I understand that members of the Legislature believe the PACT program has the money to cover current expenses. However, I am worried that if action is not taken, the lawsuits will come and the funds will, in fact, NOT be available when my feshman at UA needs them. We are among those who actually hold a contract, purchased in 1991, that does say GUARANTEED. How can the legislature guarantee that these funds won’t be locked down by the courts leaving thousands of families floundering in the very  financial mess that we tried our best to avoid by purchasing a PACT contract. 

While I appreciate the Lt. Governor’s commitment to meeting the obligation of a program that he helped develop and promote, I would like to understand how, as you wrote, “we remain in a position to adequately remedy any short-term crisis…”   Please explain how a “strongly worded resolution” accomplishes this?

You say “the law restricts the financial commitments that a legislature can impose on future legislatures.”  In theory that is true, but the Legislature consistently funds programs that effect small groups and are funded year after year. Unlike these program, to fund PACT is to fund education of the next generation— this will only reap rewards for this state for years to come.

Parents are beginning to fear that the rhetoric of February and March by PACT leaders and other politicians was just for show. We are not stupid; we understand that the comments about our “whining over making a bad investment” come from failure to understand the difference between an investment and a contract. However, we PACT holders also know that we signed a contract that our STATE put its stamp on and has continued to promote.

At times like this, a Friday posting on the official PACT website leaves a lot to be desired. We are dependent on the Lt. Governor and others to keep us informed. Please keep us posted

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.

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.

SB581...

I think the references to ACES muddy the waters a bit. Unless this is their way of separating the PACT from the 529???? Does someone know?

Wasn't the original name of the Pact legislation the Wallace-Folsom College Savings Investment Plan?

I haven't finished reading Sub 1 to see where the differences lie, but
I see that the second amendment (thank goodness)  clarifies the  language in Sub 1 ...
"Section 6. No PACT contract in force as of the effective date of this act shall be altered or changed in any manner and all benefits, promises, and/or guarantees included in such contract shall be paid, provided, and/or honored in  full."
Not sure about the 1st change .

Sure wish we had an "insider" to help us understand the jargon!

Montgomery Advertiser article on Bedford-holly bill....
don't know if they picked up on all the nuances

http://www.al.com/news/birminghamnews/s … amp;coll=2