Reserve tapped to cover payroll

By By Clif Knight, Hartselle Enquirer
Hartselle School System’s reserve fund will be tapped again this month to meet the payroll of administrators, teachers and support personnel, according to Superintendent Dr. Mike Reed.
“Our personnel get their checks on the last working day of the month. In October, we got 75 percent of what we were budgeted for salaries from the state and had to withdraw 25 percent from our reserve fund to make up the deficit. We got a check later in the month to cover the 25 percent shortfall.
Reed said while the shortfall isn’t technically proration, it is not something he likes to see happen.
“When the state’s check comes up short we don’t have any other choice but to reach into our reserve to make up the difference. “We’re obligated under contract to pay our teachers.”
While Governor Bob Riley has held off on putting school systems under proration that’s something he could do in the near future with a continued economic downfall. Some temporary relief was approved by the state’s voters on Nov. 4 when they approved an amendment to extend the borrowing limit of the “Rainy Day Fund” for education. This amendment allows the state to borrow up to $440 million for six years from a state savings fund to pay for education.