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Tuesday, September 01, 2009

PA’s Prepaid Tuition Program Under Fire

State Treasurer Robert McCord announced yesterday he is delaying increased premiums on Pennsylvania’s Guaranteed Savings Plan, which allows parents to purchase college tuition credits at current prices and redeem them when their student enters college.

The program, which currently has over 89,000 enrollments and a $1.1 billion dollar budget, is facing a deficit of over $222 million dollars due to lower than expected returns.

Chairman of the Senate Education Committee, Sen. Jeff Piccola (R-15), released a subsequent statement calling for exhaustive reforms of the Tuition Savings Plan. "There is absolutely no way the taxpayers of this Commonwealth can be responsible for any deficit this program may incur," Piccola remarked.


bobguzzardi said...

Treasurer McCord has adopted "The Postal Model". a government monopoly with legally mandated competitive advantages manages to spend more its income.

brityank said...

From the Post-Gazette link: Mr. Piccola is proposing ... requiring the state auditor to conduct an annual audit of the fund.

The more I see of the total mismanagement of our governments and societies 'lawmakers' - the more I can understand the reasons for our forebears hanging their thieving heads on pikes. It wouldn't surprise me to hear they are also blaming their losses on Bernie Madoff, someone else they turned a blind eye to!