The real truth about KAPT#2

Addressing the Lies Being Told About Kentucky’s Affordable Prepaid Tuition (KAPT)

LIE #1:
They say KAPT is in dire financial straits.

TRUTH:
An independent actuary – hired by the Fletcher Administration – proclaimed that KAPT is financially stable in the short and long term and has an actuarial SURPLUS of more than $2 million. KAPT is a self-sustaining, debt-free program that has never used tax dollars.
 SEE TAB 1: ACTUARIAL REPORT
 SEE TAB 2: KAPT ANNUAL REPORT

And if they really believe the program is financially troubled, why are they proposing to raid it to the tune of $13.7 million?

LIE #2:
They say there is no unclaimed property fund to backup KAPT. It’s just General Fund Money.

TRUTH:
The KAPT Reserve – created by the General Assembly in 2001 to back up KAPT – currently contains more than $30 million of unclaimed stocks and bonds. This money unlike unclaimed property cash -- has never been used to prop up the General Fund.

 SEE TAB 3: KRS 393.015 – creating KAPT Reserve
 SEE TAB 4: Complete listing of KAPT Reserve portfolio

LIE #3:
They say the General Assembly has the authority to raid the KAPT program.

TRUTH:
The Attorney General says there is clear Supreme Court precedent that such an action is unconstitutional.

 SEE TAB 5: March 1, 2005 Attorney General letter

These two entries are brought to you by the KAPT Truth Squad.