MONTGOMERY, Ala. (AP) - Tom Salter, senior communication officer for the MPS, said Montgomery schools will lose more than $3 million as fiscal 2010 ends today.
"Instead of having a small positive balance in our general fund, we will have a negative $3 million in our general fund," Salter said. "Because of the way bills are paid, we will get through this month without having to borrow any money. It is possible that we may have to borrow some money beginning with the new fiscal year on Oct. 1."
However, Salter said the MPS budget for the next year had built a $4.8 million cushion in anticipation of the possibility of proration next year. He said 1 percent proration in Montgomery County is just slightly over $1.5 million in state funding.
"If there's no further proration in the coming year, that would mean we could end the year with a positive balance of $1.5 million for the next fiscal year," he said. "However, if there's more than 1 percent proration next year, our expenditures would likely be above our income and would require further reduction of expenses or borrowing money."
Salter said Montgomery schools have 50 fewer teachers than they had last year, and it's getting to the point where the board is beginning to see an impact on services offered students.
"We've laid off a number of people from the central office," he said. "We've had to make cuts in every major area.
"Things like building, maintenance, no new textbooks. Those things have been affected by these funding cuts. We're just trying to do the best we can with what we've got."
Immediate cuts to Montgomery schools include eliminating some workbooks for elementary students.