(FOR EDUCATIONAL PURPOSES ONLY)

September 24, 1999 Source: American Banker

Alabama Plans a Last-Minute Deal for Y2K Compliance

ATLANTA, Bond Buyer via NewsEdge Corporation : Hounded by a report pegging Alabama's state government dead-last in the nation regarding Y2K compliance efforts, and with time running out, state officials are hoping a $50 million bond issue will be the silver bullet to avert a potential technological meltdown.

Thanks to legislation authorized earlier this year, the state is poised to issue a package of revenue bonds through the Alabama Incentives Financing Authority within the next two months, said Michael Dunn, a managing director at Merchant Capital, which is scheduled to underwrite the deal. The bonds will be insured by Ambac Assurance Corp. and carry an A rating from Standard & Poor's. The state will back the debt with a first claim on the annual payments it receives from the Tennessee Valley Authority.

As of Sept. 8, only 42% of the state's mission-critical computer systems were guaranteed to recognize the year 2000, according to a recent survey conducted by the National Association of State Information Resource Executives. This is the lowest in the nation. By contrast, 25 states said 90% their systems were compliant. The figures were responses to an online tally by a national organization of computer professionals who work for state governments, said a NASIRE spokeswoman. Critical systems are defined as those that affect public health, public safety, and financial and personnel aspects of government services. These are services that the state could not do without, such as banking and financial services, said the spokeswoman.

Despite the narrowing window of opportunity, some Alabama leaders are undaunted by the report.

"I don't anticipate any problems," said Rep. Perry Hooper, R-Montgomery, who serves on the governor-appointed Y2K commission. "There is still time to take care of necessary business." In addition, Hooper said the state is working diligently on contingency plans. "I'm hoping by the New Year we will be 100% compliant, but if we're not, we will be ready, " he added.

Carrie Kurlander, a spokeswoman for Gov. Don Siegelman, agrees with Hooper. The survey does not note that the state is coming closer to meeting its Y2K needs, Kurlander contended. "We have made great strides," she said. "We are way ahead of where I thought we would be."

Kurlander blames the previous administration of Gov. Fob James for not preparing the state for the new millennium. "We have inherited a huge challenge. The previous administration had done nothing in regards to Y2K, " she said.

To date, the authority has issued nearly $48 million of debt to help combat Y2K problems. However, part of this issue went towards funding a package used to lure a DaimlerChrysler Corp. auto plant to Alabama.

According to a prepared statement made by the governor's office, the debt will help forge the way to make the state's computer hardware and software systems compliant. Y2K compliance means that computer systems should be capable of accurately processing, storing, providing and/or receiving date data from, into, and between the 20th and 21st centuries without creating new errors or side effects, the statement said.

"Bond package proceeds will go towards developing and coordinating a plan for testing remediation efforts as well as on-site training," Hooper said Wednesday.

Copyright c 1999 American Banker, Inc. All Rights Reserved. www.bondbuyer.com

By Michael Reisman

-- Nom (nomd@plu.me), September 24, 1999

Answers

This is not a problem, NOM. The remaining 52% will be completed by year-end. Just ask 'expert' Y2K Pro. Ain't that right Pro? Why don't you go down to Alabama and prove your genius by fixing the remaining 52% yourself?

-- killer bunny (killerbunny@henhouse.com), September 24, 1999.

Amazable.

"I don't anticipate any problems," said Rep. Perry Hooper, R- Montgomery, who serves on the governor-appointed Y2K commission. "There is still time to take care of necessary business."

Uh... whose bus-i-ness?

Politicians. Sheesh!

Diane

-- Diane J. Squire (sacredspaces@yahoo.com), September 24, 1999.

Dearest Diane, you're such the Left-coaster.

In Alabama, they call it "bidness", not business. We lose these regional...er...nuances when we read things like this in print media. ;-)

-- Nom (nomd@plu.me), September 24, 1999.

This article is so damn funny, I have to comment further. I guess it's a good thing I have some time on my hands this P.M.

Alabama Plans a Last-Minute Deal for Y2K Compliance

(What deal? With Beezlebub's Code-Whackers-R-Us?)

Thanks to legislation authorized earlier this year, the state is poised to issue a package of revenue bonds through the Alabama Incentives Financing Authority within the next two months...

(Let's see...October...November...yeah, they ought to have this effort fully funded by say, the beginning of December! That gives them a whole month!)

As of Sept. 8, only 42% of the state's mission-critical computer systems were guaranteed to recognize the year 2000...Critical systems are defined as those that affect public health, public safety, and financial and personnel aspects of government services. These are services that the state could not do without, such as banking and financial services...

(Yep - that about covers it. I'm glad they've determined what's mission critical, anyway.)

"I don't anticipate any problems," said Rep. Perry Hooper, R- Montgomery, who serves on the governor-appointed Y2K commission. "There is still time to take care of necessary business." In addition, Hooper said the state is working diligently on contingency plans. "I'm hoping by the New Year we will be 100% compliant, but if we're not, we will be ready, " he added.

(Put a deeeeep, slooooowwww, LA (Lower Alabama) drawl on this statement, and it comes out with a bit different meaning. Translation: "I'm clueless, but as long as the beer stays cold and the crawdaddys stay boiled, we're in fine shape.")

Kurlander blames the previous administration of Gov. Fob James for not preparing the state for the new millennium. "We have inherited a huge challenge. The previous administration had done nothing in regards to Y2K, " she said.

(Yeah! It's that previous jerk's fault that AFDC, welfare checks, state payroll, and other entitlement programs are gonna fall flat on their faces. Finger pointing and blame laying at it's finest. However, fingering an ex-politician is like fingering a COBOL programmer that's been pushing up daisies for the past 20 years. Casting blame upon the waters is going to be verrrrrrryyy big in the coming weeks.)

To date, the authority has issued nearly $48 million of debt to help combat Y2K problems. However, part of this issue went towards funding a package used to lure a DaimlerChrysler Corp. auto plant to Alabama.

(Say whaaaaa????)

This whole article was a classic.

-- Nom (nomd@plu.me), September 24, 1999.

Ah Nom, too funni!

Guess I just didn't have the accents right.

"But re-e-ally itz kewl. I mean, uh, oh, letz d-o-o lunch!, huh? Kisss, kisss."

;-D

In Cali-for-n-i-a they sort'a blame it on the previous Governor's administration too. Wonder if that's catching?

Diane

-- Diane J. Squire (sacredspaces@yahoo.com), September 24, 1999.

The state motto here is "Thank God for Mississippi", else Alabama would be dead last in everything that matters. So you have to consider their y2k readiness in light of what they "do" for their citizens. 48% of very little isn't so bad. You develop a sense of black humor down hear, y'hear?

-- Flint (flintc@mindspring.com), September 24, 1999.

OOOoooooo! Lynyrd Skynyrd! :-)

-- Gayla (privacy@please.com), September 24, 1999.

Dumb ass Flint

maybe you should look at this report by HCFA(Healthcare Finance Adm.)

http://www.hcfa.gov/y2k/medicaid/statect.htm

In it you'll find Mississippi ranks LOW in both catergories while Alabama has about the highest sxore I see.

Alabama hasn't been the same since Bear Bryant left.

I was there 1980 MS State 6 alabama 3

-- The Count of Meijer Crisco (40@cansof.course), September 24, 1999.

Gayla I love it when you do that.

-- The Count of Meijer Crisco (40@cansof.course), September 24, 1999.

:-)

-- Gayla (privacy@please.com), September 24, 1999.

HEY, OWLL YEUW CARPETBAIGERS!!

They's a couple a us transplainted Daymn Yankees down here in 'Bama, and we don' cotton to the way y'all are baydmouthin' owr naybors. It makes us kinda tor up.

[Switch off the Dialect Translator]

But there's two interesting very divergent phenomena down here in Crimson Tide Territory:

1) The authorities are definitely calming the waters (e.g., at a community meeting on 6/17/99 we were assured our county's power grid was already totally remediated, including our nuclear reactors -- however an 8/4/99 report from the U.S. Senate announced that our two nuclear reactors, Brown's Ferry #1 and #2, will not by Y2K-ready until 'late October.')

2) On the other hand there appears to be a significant number of the citizenry gearing up their preps, at least in this part of the state: drilling wells, building shelters, putting in alternate energy systems.

So whether Alabama feels all is well Y2K-wise depends on whom you talk to. Keep tuned.

Bill

-- William J. Schenker, MD (wjs@linkfast.net), September 24, 1999.