Prepaid-Tuition Program in Texas Faces Long-Term $3.3-Billion Deficit, Audit Finds

Texas’ prepaid-tuition program may be in worse shape than previously thought. The Texas Tomorrow Fund, which allows families to pay for tomorrow’s higher education at today’s prices, could face a shortfall of as much as $3.3-billion over the next 20 years, five times as much as previously estimated, according to a report by the state’s comptroller.

The plan has been closed to new enrollees since 2003, after rapidly rising tuition rates at state colleges made it impossible for the board that oversees the program to set prices for new contracts. Other states also have considered altering or permanently closing their plans because of long-term deficits.

Texas officials recently proposed reopening the Tomorrow Fund, but the results of the “sobering” audit could keep it shuttered, the Dallas Morning News reported today.Prepaid-Tuition Program in Texas Faces Long-Term $3.3-Billion Deficit, Audit Finds
Texas’ prepaid-tuition program may be in worse shape than previously thought.

The Texas Tomorrow Fund, which allows families to pay for tomorrow’s higher education at today’s prices, could face a shortfall of as much as $3.3-billion over the next 20 years, five times as much as previously estimated, according to a report by the state’s comptroller.

The plan has been closed to new enrollees since 2003, after rapidly rising tuition rates at state colleges made it impossible for the board that oversees the program to set prices for new contracts. Other states also have considered altering or permanently closing their plans because of long-term deficits.

Texas officials recently proposed reopening the Tomorrow Fund, but the results of the “sobering” audit could keep it shuttered, the Dallas Morning News reported today.