Most school districts will dip into their reserves or savings to make ends meet. That's what many did last month when this happened, including the 5th largest school district in the state, Shelby County Schools.
Teacher said, "Let's pass them to the front"
A social studies class in the Shelby County School District... they're reviewing for a test...
Teacher said, "If we were to actually create the roadmap"
...while school administrators are reviewing their budget - to meet this months payroll.
Shelby County Schools Superintendent Randy Fuller said, "Last month, we had the same situation, we utilized our reserve."
Last month - the State Board of Education told school districts, their payments would be short 25%. Now the state board is doing it again.
Fuller said, "At this point in time, when it's 25%, if it's 25% like it was last month, we're able to handle that."
Fuller said the district will dip into its 11 million dollar reserve to get the job done. Just like every other school district in the state, Shelby County School Officials are worried about the temporary shortfall, but they're really watching for when the Governor declares pro-ration."
Fuller said, "Our worry is pro-ration and the revenue strain that's coming into our system through the education trust fund and through local efforts too."
Fuller also said regardless of the size, superintendents will have to make adjustments to their budgets - adding it's a difficult time.
If Governor Bob Riley declares pro-ration or a mandatory budget for higher and secondary education, the superintendent told me - the district will have to look at ways to reduce spending. The first cuts could come in maintenance renovations and travel.
It is possible Governor Riley could declare pro-ration next month.
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