School officials saw cut coming
Published 10:42 am Wednesday, March 2, 2011
Gov. Robert Bentley’s declaration of 3 percent proration in the education budget was not a surprise to local school officials.
Escambia County Schools Superintendent Billy Hines said the money will come from reserves.
“Fortunately, we have the money in reserves,” Hines said. “We have the funding, but at the same time, it’s upsetting to me because to stay balanced we have to take the money that we could use to help further our children’s education to keep things going in our school system.”
Hines said that reserve funding could have been used for infrastructure or improvements at schools.
“Thank goodness for our voting public that saw the need for our 10-mill tax followed by a 4-mill renewal because that’s keeping us as one of the systems in the state that’s in good, strong financial shape,” Hines said.
The proration came as no surprise to Brewton City Schools officials.
“We were expecting 3 percent,” said Brewton City Schools Assistant Superintendent Baxter Baker.
With salaries and benefits and other expenses already set for the year, Baker said the cuts will have to come from local funding.
Bentley also said he will likely declare 15 percent proration in the General Fund, although he will first work with the Legislature for supplemental appropriations to protect agencies that provide “necessary and critical services,” his office said.
The new legislative session began Tuesday.
Bentley said the cuts are coming after analysis, but the finance office and the state Department of Revenue, which found that estimated revenues are not enough to make the budget. In addition, federal stimulus money, which propped up both budgets in the past, is now depleted.
The current Education Trust Fund has a $165 million shortfall, while the General Fund has a $110 million shortfall.
“Both our Education Trust Fund and our state’s General Fund budgets are based on unreliable revenue projections,” Bentley said in a statement. “Now, five months into the 2011 Fiscal Year, it is clear that there is not enough revenue to sustain either budget. Proration is necessary to balance the budgets.”
Proration in the Education Trust Fund is effective immediately.
“The taxpayers expect us to live within our means just as families and businesses are forced to do,” Finance Director David Perry said. “No one is pleased that we have a revenue shortfall, which requires proration in the budgets that were passed last year, but mid-year cuts are necessary for Alabama to meet its constitutional obligation for a balanced budget.”
Advance Publisher Adam Prestridge contributed to this story.