Office of the State Treasurer: BIPARTISAN LEGISLATIVE EFFORT YIELDS VICTORY

FROM THE OFFICE OF THE STATE TREASURER

June 19, 2008

Contact: Anthony Leigh
(334) 242-7500


Montgomery – State Treasurer Kay Ivey welcomed Governor Bob Riley to her Capitol office today for the signing of HB43, legislation passed during the regular legislative session to provide a tax deduction for Alabama families making a contribution, up to $5,000, per year, to one of Alabama’s two college savings plans. The bill was sponsored by Rep. Richard Lindsey (D-Centre) and sponsored in the Alabama Senate by Sen. Zeb Little (D-Cullman).

“I appreciate Senator Zeb Little and Representative Richard Lindsey providing their strong bipartisan support to this effort to give Alabama parents and grandparents an incentive to save for college” Ivey stated. “As Alabama colleges and universities raise tuition by double digits, Alabama families need all the help they can get to pay for college tuition and other college expenses. The bill will help families make saving for college a priority in their family budget.”

Alabama offers two college savings programs – the Alabama Prepaid Affordable College Tuition (PACT) Program and the Alabama Higher Education 529 Fund. PACT is based on a simple concept – pay today for tomorrow’s tuition. Through the PACT program, a contract may be purchased to prepay college tuition and qualified fee payments at any Alabama public college or university. The program also allows contract holders to attend private or out-of-state schools based on the weighted average of in-state costs.

The Alabama Higher Education 529 Fund is professionally managed by Van Kampen Investments. This program allows investors to contribute to an individual account within the 529 Trust Fund, choose from several investment options, and later use the investment results of that particular account to pay for college expenses. The program, offered nationwide, offers multiple benefits for Alabamians to save on fees and costs associated with investing in the program.

For more information about these two programs, please visit the Treasury Web site, http://www.treasury.alabama.gov or call 1-800-252-7228.