Mississippi is making strides in funding programs intended to make college tuition more economically feasible for families.
According to State Treasurer David McRae, the Mississippi Prepaid Affordable College Tuition (MPACT) Legacy Plan has reached 100.1% funding. When the treasurer first assumed his office in 2019, the Legacy Plan, which consists of prepaid tuition contracts purchased before 2014, was only 72% funded. This left taxpayers footing the $125 million bill.
McRae touts a series of “fiscally responsible” decisions that revived the program’s solvency and saved taxpayers millions of dollars.
“The MPACT Legacy Plan’s balance sheet hung over the heads of taxpayers for too long,” McRae said. “We took action early in my tenure to reverse course and regain solvency, and today, that is exactly what’s been accomplished.”
The Legacy Plan became more secure after experiencing a 27% performance investment return in Fiscal Year 2021— the best one-year return in the program’s history. Another contribution to the plan’s recent success is a decision the College Savings Board made in 2020 to update actuarial assumptions, or future projections, to more accurately reflect historical experiences.
“I am a fiscal conservative to my core, so asking for a taxpayer bailout wasn’t in the cards for me,” McRae added.
“My team did not take that direction lightly. I want to extend a special thank you to our Investments Team for their hard work throughout this process. Together, we have been able to build confidence in a program that can help more Mississippians pursue a two- or four-year college diploma. When they do, Mississippi will gain another skilled worker, making us more attractive to employers, driving economic development, and empowering young people to reach their God-given potential.”
The newer Horizon Plan, consisting of prepaid tuition contracts purchased since 2014, remains fully funded at 135.5% and is secure going forward, per the treasurer.
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