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City looks at school stipend, other cutbacks

By By Paul Keane
Publisher
The City of Atmore is looking at various budget cuts, including a six-figure stipend to the school district, in anticipation of a loss of sales tax revenue when Kmart closes its store here.
Kmart officials announced Tuesday that Store No. 4388 would close as part of the companies bankruptcy proceedings. The closure could mean a more than 10 percent loss in sales tax revenue for the city.
"We're not trying to just cut things to be cutting things," Mayor Howard Shell said. "All expenditures are being looked at right now, and some have already been cut.
"Nothing has been done yet, though. The City Council would have to vote on any measures to cut that money to the schools."
Last year, the City gave the school district $254,000 from its city sales tax revenue. In addition, one third of the city's ad valorem taxes – a total of $220,000 – was also given to the school district.
Shell said the portion of ad valorem taxes could not be taken away, as that was voted on by the residents of the city and would remain intact..