Alabama schools spend savings to stay open - WSFA.com Montgomery Alabama news.

Alabama schools spend savings to stay open

MONTGOMERY, Ala. (AP) - A new report says Alabama's public schools spent nearly $222 million more than they received in revenues in the last fiscal year. That forced school officials to raid savings and borrow money from banks to meet their salary and benefit obligations.

The report given to the State Board of Education on Thursday showed the effect of budget cuts and shrinking tax collections at the state and local level. Assistant State Superintendent Craig Pouncey said that when the fiscal year ended Sept. 30, 56 of Alabama's 132 school systems did not have enough money on hand to pay one month's bills.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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