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Crist, Sink Say College Money Safe

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The Associated Press

Published: March 10, 2009

Updated: 03/10/2009 06:46 pm

TALLAHASSEE - Gov. Charlie Crist and Chief Financial Officer Alex Sink warned lawmakers today to keep their hands off the $8 billion Florida Prepaid College Plan.

Crist and Sink said they oppose any notion of taking dollars from the trust fund that holds and invests money for families who have prepaid their child's college tuition at today's rates.

"I don't think that's a great idea," Crist said, adding that he wouldn't allow such a measure to get past him.

Sink was more direct. When asked about the idea of using some prepaid dollars to pay bills, the CFO responded, "Hell no!"

Some state senators floated an idea last week of borrowing some cash from the fund to help pay some of the state's bills amid an anticipated $5 billion budget gap in the upcoming fiscal year which begins July 1. Florida is required to maintain a balanced budget.

However, no one sought an opinion from the attorney general's office to see if such an action would even be legal. Sandi Copes, communications director for the attorney general Bill McCollum, declined to say if the attorney general has an opinion on the question, but confirmed that no lawmaker had sought the opinion.

Senate President Jeff Atwater, R-North Palm Beach, also opposes taking money from prepaid's coffers.
Jill Chamberlin, spokeswoman for Speaker Larry Cretul, said the speaker had not taken any position on the issue.

As of June 30, 2008, the Florida prepaid fund's assets totaled $8.3 billion, which is $775 million more than needed to pay out existing commitments.

Florida Prepaid is a fund where parents or grandparents can pay for college fees and tuition at today's rates. It is the largest and one of the oldest prepaid tuition plans in the country, with over 1 million families having locked in the future cost of tuition with an option of also locking in dormitory costs at the state's public institutions.

In the 2008-09 enrollment, prices ranged from $4,972 for a two-year community college contract for a newborn to $45,875 for a four-year university contract for an eighth grader, that would include fees, tuition differential and a five-year dorm agreement.

The Florida plan allows families to buy contracts in lump sums or monthly payments.

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