Last Thursday was the tenth Legislative day (one-third of the session) for the Alabama Legislature and I have not written my first Governmental Relations Update (GRU) because, like most Americans, I cannot figure out what is going on and, for that matter, neither has the Alabama Legislature. One thing I do know now is that the federal government's Stimulus Package has passed and Alabama will receive millions of dollars for various programs. Economic stabilization for education is one of those programs. While there is a formula for distributing the money to K-12 and higher education, some of the language in the bill is subject to interpretation (although I do not see how--more on that in future GRUs), and how the Governor and Legislature will distribute the money remains to be seen. Nevertheless, USA will receive a few million dollars (sorry to be so vague) and that will help. Unfortunately, it falls far short of replacing the $28.5 million we have been cut since FY 2008.

Thank you to all the faculty, staff and students who traveled to Montgomery Thursday for Higher Ed Day. They joined hundreds of university supporters from all universities to deliver the message that "higher education can not continue to receive a disproportionate share of cuts and, as funding is restored in the future, we must receive our fair share." While visiting the Senate, our group was introduced by Senator Rusty Glover '89. Lieutenant Governor Jim Folsom responded with, "Go Jags."

I want to mention another issue that you will hear a lot about over the next several weeks. As you know, Alabama's Prepaid Affordable College Tuition (PACT) program is in severe financial jeopardy. I know many o you have PACTs for your children. Apparently the fund has lost 45% of its value in a year and a half. Many people in our state, including members of the Alabama Legislature, are confused about who is responsible for these funds. Unfortunately, many believe the funds are deposited with, and are the responsibility of, state universities. Please remind your friends and neighbors, when asked, and you will be asked, that the funds are administered by the State Treasurer and a Board appointed by various state officials. Universities have nothing to do with managing the investment of the funds.

While the PACT program is not an obligation of the State of Alabama, those unfortunate parents who sought to invest in the program in order to cover their child's college tuition will look to the state for a solution. The bottom line is that there will be a million dollar hole in this program for many years to come. The question is how will that hole be filled?