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PACT guarantee axed by Lucy Baxley in '95
By Lucy Baxley says she removed guarantee from PACT plan
Montgomery, AL – - Lucy Baxley says she removed all
guarantees from promotional literature and contracts for Alabama's
prepaid college tuition plan when she was state treasurer in 1995.
The plan is now financially troubled, raising questions about
whether those putting money in the program were guaranteed tuition
would be paid.
Baxley, in an interview with The Associated Press, said she
removed the word "guarantee" because there was no legal guarantee
in state law.
The program used the word "guarantee" when Baxley's
predecessor in the treasurer's office, George Wallace Jr., launched
the program 20 years ago. Wallace disagrees with Baxley and says
there is a legal obligation by the state to provide tuition.