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Showdown Developing In Ala. PACT Bailout

Montgomery, AL – A showdown is developing between the House and Senate over how to bail out Alabama's financially troubled prepaid college tuition plan.

The Senate recently passed a bill to provide $236 million to the program. But the House Education Appropriations Committee rewrote the bill Wednesday to add a cap on how much universities could raise tuition for the 45,000 participants in the program. The bill now goes to the House.

The bill's sponsor, Democratic Sen. Ted Little of Auburn, said a majority of the Senate opposes a cap and a majority of the House supports it. Little questions the legality of a cap. Proponents of the cap say $236 million is not enough to salvage the program without a tuition cap.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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