The Prepaid Affordable College Tuition program which was enacted in 1989 has provided an opportunity for the purchase of PACT contracts to provide for future college tuition payments to be made. The program has provided these payments for each year since inception. The PACT Board has suspended new entrants into the program and has expressed concerns about the ability to meet the contractual obligations for those participants still in the program. Since the PACT program was enacted by the Legislature and the PACT Board is an agency of the state, the payment of contractual obligations of this state agency is an issue that should be addressed by this Legislature. This bill will provide for the funding to offset any shortfall if the assets of the program are insufficient to meet the obligations.
Source: Alabama Legislature