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Baxley: No Guarantee on PACT Money Payouts

By Associated Press

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.

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