The actuarial report on Kentucky's Affordable Prepaid Tuition (KAPT) program will show an additional $35.7 million in red ink when it becomes available sometime in the next few days, sources within state government report.
The program has been a constant money-losing proposition for taxpayers since current Finance and Administration Jonathan "Skippy" Miller promoted the idea of a taxpayer-backed college financing scheme in his 1999 run for Treasurer of Kentucky. The program was created by the 2000 General Assembly.
Further losses were limited somewhat when the program was closed to new recipients in 2005. Obviously, though, lots of red ink remains.
Overpromising to recipients combined with underperforming investments and a guarantee of a taxpayer-financed bailout got us into this mess.
Hmmm... Why does that sound familiar?
Looking forward, a pertinent analogy is present in the case of the state's public employee defined-benefit retirement plans. There is already $27 billion worth of red ink there.
Anybody want to cut our losses on the big bucks?
Thursday, October 16, 2008
Hey Skippy, can you swim?
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