Schools head off impact of proration

By By Clif Knight, Hartselle Enquirer
Governor Bob Riley’s announcement that state school funds will be prorated by 7.5 percent didn’t come as a surprise to Hartselle school officials. They saw it coming and made allowances in the budgeting process that began in August.
The current budget is based on state revenues totaling $17.7 million, or about $1 million less than what was received in the prior fiscal year. In fiscal 2008-09, revenues were reduced by $1.6 million due to 9 percent proration declared in December 2008 and $357,000 due to an additional 2 percent declared in July 2009 for a total reduction of almost $2 million.
Governor Riley said a continuing decline in tax revenues and higher costs for employee health insurance prompted his decision to declare proration.
Paul Hubbert, executive secretary of the Alabama Education Association didn’t object to the governor’s decision.
With a combined two -year peroration rate of 18.5 percent, Hartselle schools will have used approximately one-half of its reserve funds to cover operational expenditures at the end of the current fiscal year. One year’s operational expenses based on the current budget totals $1.7 million. The state requires school systems to have at least enough money in reserve to operate for one month, and three months is recommended. At 7.5 percent proration, Hartselle’s reserve will drop to about three months going into the 2010-2011 fiscal year.
Losses in state revenue have resulted in major reductions and/or the elimination of funding for classroom supplies, technology, library enhancement and textbooks, according to Reed.