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This is from Factcheck when Byrne was being blamed for losing the money:

quote:
It’s true that Alabama’s Prepaid Affordable College Tuition Program, known as PACT, lost money. But Byrne didn’t run the program. According to the official PACT website, "The PACT Program is administered by the Office of State Treasurer Kay Ivey." Byrne, as chancellor, was among 10 members of the PACT board of directors, which oversees the fund.

The program aims to cover college tuition payments for students who prepay college costs, protecting students and their families from future tuition increases. The ad cites a March 3, 2009 Birmingham News story that said PACT lost nearly half of its value in an 18-month period, declining from $899 million in September 2007 to $484 million in March 2009.

Three reasons were cited: tuition rose faster than expected, more students were enrolling in state schools, and the stock market collapsed. About 20 percent of the loss — or roughly $83 million — stemmed from stock market loses, the paper said. A chart released that day by the Alabama Department of Treasury shows the 20 percent drop. But what investor didn’t lose money in the market? The question is: was Byrne to blame and what impact did the program’s poor investment results have on students?

The newspaper article cites a Birmingham investment manager saying he has steered his clients away from the program for 15 years because its investment strategy is "too aggressive." So, perhaps Byrne missed an opportunity to recommend a change in investment strategy, which he might have done as a member of the board. On the other hand, Alabama was not alone. The New York Times reported in October 2009 that 16 of the 18 prepaid tuition programs in the country were in the red because of rising tuition costs and poor investment returns. As for the impact on Alabama’s students, Byrne in March 2009 waived tuition increases for PACT students through the 2012 school year.


Kay Ivey incompetent?

No, she isn't.
quote:
Three reasons were cited: tuition rose faster than expected, more students were enrolling in state schools, and the stock market collapsed.


The program is designed to benefit parents by shielding them completely from tuition increases, thats why it's called Prepaid. I dont know why the number of students enrolled is an issue.

The program is only for state schools.
Jim Folsom has done more damage than Aunt Kay. Jim Folsom has never had a job in the private sector. Jim Folsom and His family have been sucking on the Ti_ of Alabama to long. Look it up, his dad was a crook and the apple dosen't fall far from the tree. Don't like either Aunt Kay or Stupid Jim but this state can't see the truth, we keep voting in stupid.

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