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/