NEWS
Treasurer hopefuls disagree over experience, PACT plan
Republican
incumbent Kay Ivey, a veteran of statehouse politics, faces a lesser-known
Democratic challenger, Montgomery real estate agent Steve Segrest, in the
Nov. 7 election for state treasurer. [Associated Press, Brumback, 10/18/06]
But Segrest says Ivey’s experience and ties to banking are a problem, not a plus, and he disagrees with her about the financial health of the Prepaid Affordable College Tuition program, which the treasurer oversees.
Ivey, 62, said her experience -- as state treasurer and previously in banking and higher education roles -- makes her more qualified than Segrest.
“I think experience is a major factor that voters should consider," she said. “He’s a worthy opponent, but he’s never had the experience that I have."
Segrest, 57, who owned several restaurants and a clothing store before getting into real estate sales and development about 10 years ago, said his lack of banking experience is precisely what makes him a more qualified candidate than Ivey.
“I’ve never worked in a bank. She has," he said. “I would ask how much of an obligation does she feel to her old bank and to the banking community."
The experience he has gleaned from both successful and unsuccessful small business and real estate ventures, Segrest said, gives him more of an understanding of the taxpayers’ sacrifices and needs.
Segrest said banks should not be allowed to contribute to the campaigns of candidates for treasurer because that would put the winner in a position of needing to return the favor through big deposits of state money.
“If it’s wrong for the PSC to accept money from the utilities, then it’s wrong for the treasurer to take money from banks," Segrest said. “If I win, and I intend to win, I plan to make it illegal in the state of Alabama."
Ivey said this sentiment is misguided.
“The state department of the treasury does not in any way, shape or form regulate financial institutions," she said.
She said she has received support from banks because they know she has relevant experience and they trust her.
“The bankers of the state know Kay Ivey," she said. “They are comfortable with me and that’s a good thing."
Segrest said when he entered the race for treasurer, a friend warned that he was running against one of the most popular women in the state. He said he doesn’t dispute that but thinks he can do a better job.
“I don’t see how she can ride on her tenure in office because her experience has not been good," he said. “Her performance has not been satisfactory. I think she’s a fine lady and she needs to retire. I intend to help her do it."
Before being elected state treasurer in 2002, Ivey worked at Merchants National Bank in Mobile for most of the 1970s and spent 13 years as the director of government affairs and communications for the Alabama Commission on Higher Education.
Segrest ran unsuccessfully for secretary of state in 2002. He comes from a political family. His father was a state representative and his maternal grandfather, Napoleon B. Broward, was a governor of the state of Florida.
As for the PACT program, both want to give it more flexibility and agree on its necessity in helping parents set aside money for their children’s college tuition.
But Segrest said Alabama’s PACT program lags behind similar programs in other states. He also said that the approximately $70 million deficit shown by the program in 2005, up from about $50 million the previous year, is a cause for concern.
“In Texas, they went so deep into deficit they had to close their program," Segrest said, adding that he doesn’t want to see the same thing happen in Alabama.
He said in a telephone interview that he would like to examine more effective programs in other states to see what works.
“Let’s steal the best ideas from the states that are ranked highest," he said.
Ivey dismissed Segrest’s claims that the program is in trouble. She
said the program is healthy and is helping Alabama families send children
to college. Despite the deficit increase, she said, the program went from
90 percent funded to 91 percent funded from 2004 to 2005.
She said that, as state treasurer, she worked with the Legislature for nearly
two years to make money from PACT exempt from state income taxes when it is
used.
If re-elected, she said, she hopes to go one step further by making contributions
to PACT funds tax deductible as well.
Segrest seeks PACT changes
State treasurer candidate says tuition program in trouble
State treasurer candidate Steve Segrest believes Alabama's prepaid college tuition programs need a management change. [Decatur Daily, Hughes, 10/17/06]
The Montgomery Democrat told THE DAILY editorial board that Republican incumbent Kay Ivey is wrong if she believes the Prepaid Affordable College Tuition fund is in good shape financially and is one of the nation's top prepaid tuition funds.
Segrest, a real estate agent and businessman, said Joe Hurley of Bankrate.com gives Alabama's PACT a two-star rating, while at least 15 other states' funds get a three-star or better rating.
The last annual actuarial valuation done in September 2005 shows PACT had a debt of $70 million. Segrest said he thinks this number is up to $80 million, although the next valuation is not due for publishing until later this year.
Segrest said the problems are that the state pays too much in administrative fees and the plans aren't keeping up with the cost of living.
While most states pay about 0.25 percent in administration fees, Segrest said, Alabama pays 1.5 percent to Van Kampen Investments.
"I don't know that Van Kampen needs to relinquish the contract, but we need to find out why we're ranked where we are," Segrest said. "We need to bring in some professional interest to evaluate the programs. Alabama is not keeping up. One investment banker told me I would be better off investing on my own and paying the taxes than investing in our college tuition plans."
Segrest said Alabama needs to "steal other states' ideas" so it can improve the PACT and 529 programs.
The other main plank of Segrest's campaign is that he wants to make it illegal for the state treasurer to accept campaign contributions from banks. He criticized Ivey for taking such contributions. So far, he said, his contributions are less than $10,000. His biggest contributor is an Alabama Education Association political action committee that gave him $5,000.
He said state Public Service Commission candidates can't take contributions from power, gas or phone companies, so the state treasurer should not be able to take bank contributions. He said he would work with the state Ethics Commission and the Legislature to close this loophole.
"It's just wrong," Segrest said. "I see no reason the state
treasurer candidate should take money from a banking institution and then
turn around (if elected) and put state money in that bank for investment."
Segrest said the state treasurer's office should favor the small-town
community banks, if they can provide competitive rates, over the large banks,
especially those with home offices outside of Alabama.
"We need to help small towns grow," Segrest said.
Segrest has not been employed by a bank like his opponent, but he said Ivey is the first state treasurer he knows of to have this experience. He said he would go into the job with a vision and ideas.
"I've got banking experience," Segrest said. "I've balanced
my checkbook and paid my mortgage. The state treasurer is an administrator
and a manager."
PRESS RELEASE
Steve Segrest Announces Candidacy
FOR IMMEDIATE RELEASE: April 10, 2006
CONTACT: Steve Segrest (334)328-7818
Montgomery- Today small businessman and realtor Steve Segrest announced his campaign for State Treasurer.
“I want to use the real-world experience I’ve gained from a lifetime in small business to benefit the Alabama taxpayer,” said Segrest. “Alabamians work hard to provide our state with tax dollars and I will work just as hard to get the most out of their sacrifice.”
Segrest was born in Auburn in 1948 and graduated from Camden Military in South Carolina in 1967 and also received a B.A. from LaGrange College in 1972.
Segrest has been involved in both public and private endeavors, owing several restaurants and a clothing store. For the past 10 years, Segrest has been active in real estate sales and dvelopment in both Alabama and Florida.
Segrest comes from a long line of public servants. His mother, Florida Broward Segrest, was the first woman to chair a county commission in Alabama. His father Henry Neill Segrest servred in the State House of Representatives beginning in 1938 and authored a bill creating the State Department of Veterans Affairs, the first in the nation. Segrest’s maternal grandfather, Napoleon B. Broward was governor of Florida (1905-1909) and elected to the U.S. Senate in 1911 but died before taking office.
Segrest is married to the former Dianne Miller and they have three children and eight grandchildren. Steve is also proud to be an ordained Elder of the Presbyterian Church.
Contact the Segrest Campaign (334)213-2300.
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