This issue divides.  Don't all issues really do that.  Well, I have made my stand on it.

So many people are involved in trying to do something positive to address the State's PACT problem because it is a problem worthy of address in some aspect.  I think since we, the public, are new to the problem, we are trying to figure out just how to address it.  Hindsight is 20/20 as they say, but it would have been nice if the PACT managers would have let the public in out the problem a little earlier. 

But, I digress.  What we have here is a sure kunudrum.  The Alabama Legislature is going to start moving on this next week.  Rep. Craig Ford, D-Gadsden, himself a PACT contract holder, will be introducing legislation to supply $30 million a year for five years from the State's General Fun budget.  Let us take a look at what the General Fund is as described at the Alabama.gov website:

"The State General Fund (GF) is one of five major operating funds in the State of Alabama. Revenues credited to the GF are used for the ordinary expenses of the executive, legislative, and judicial departments of state government, for other functions of government, for debt service on certain general obligation bond issues, and for capital outlay. The GF supports state programs such as child development and protection, criminal justice, conservation efforts, economic development, public health and safety, mental health, Medicaid, legislative activities, and the court system. Taxes from over 40 sources are deposited into the GF, with the largest sources being the insurance company premium tax, interest on the Alabama Trust Fund and state deposits, oil and gas lease and production tax, cigarette tax, ad valorem tax, and Alabama Alcoholic Beverage Control Board profits."

There are plenty of outspoken voices behind a fix for the PACT problem.  There are some who view PACT contract holders the same as any other type of investor and refuse to believe that tax dollars should help address their issue.  Here is my problems with that....

First, we pay tax dollars on many things that we may never get the benefit from individually.  In my mind, we pay taxes so the government can operate and address issues the government should be addressing.  We pay for Social Security and Medicaid and programs so citizens can have cell phones but not be able to use them.  What worthier cause for tax dollars to be spent than to ensure children who can get to go to college.

Second, the Alabama PACT program is set up with good intentions.  It does not exist to make either the State or the PACT contract holder money.  The PACT is not purchased by someone in the same way as any other type of investment.  It is not like someone went into an AIG office and sat down with an investment guy who salivated on the thought of all the money he might make.  The PACT contract holder didn't sit down and think about the total money they might receive back after the investment period was over.  It was not advertised as just another 529 plan.  The State had a noble idea of how to get kids to school and the parents and grandparents felt as if the PACT plan offered peace of mind they could not get anywhere else.

Lastly, as a government entity, the State should have a commitment to its citizens.  It should devise and execute plans and governance that is in line with the best interests of the people.  Now, if government wants us to look at them as just another investment firm, bent on making money irregardless of the customer's end result, then we need to know that NOW. 

Are we citizens or customers?