Schools face 25 percent cut in funds

Published 11:01 pm Thursday, October 30, 2008

MONTGOMERY (AP) — A 25 percent shortfall in funds for Alabama school systems this month put a financial squeeze on local districts. But state school officials say none needed special help from the state education department to make Friday’s payroll.

State Superintendent Joe Morton told superintendents in Alabama’s 131 school districts on Tuesday that the Education Trust Fund only has enough cash flow to pay them 75 percent of the state allocation they receive each month.

Morton said he hopes to get the remaining 25 percent to local systems by the end of next week.

State education officials said Thursday that systems have been dipping into their reserves.