MPS watching Gulf oil spill

Posted by Cody Holyoke - bio | email

MONTGOMERY, AL (WSFA) - You won't find any white sand beaches in Montgomery.

Still, the impact of the oil gushing in the Gulf of Mexico leaves a potentially slippery financial future for the school system.

State school leaders are already bracing for tough times ahead in Alabama.  It's the same in the Capital City.

Administrators predict the spill could mean a 2% to 3% cut in funding--up to $4.5 million gone because of the crisis.

"We don't have that fund reserve.  So that is not a good thing for us. Our fund reserve would be down to practically zero," said superintendent Barbara Thompson.

The projections come on top of dwindling finances. Even after cuts, staffers predict the system's multimillion dollar bank account could be wiped out--or in the red--by September 30th.

"The plan that we put in place will serve us next year going in, but it won't give us the fund cushion we once had," Thompson said.

The board did officially recognize in their meeting that funding will be extremely tight in the coming months.

As of right now, the school system hasn't had to borrow money to keep up with spending, but Thompson says she's weighing all options.

©2010 WSFA. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.