MOBILE REGISTER

Governor's budget cuts favor K-12

04/20/01 
By JEFF AMY 
Capital Bureau

MONTGOMERY - Ending weeks of uncertainty and indecision, Gov. Don Siegelman said Thursday that he would stick to his original plan to cut colleges and other items more than K-12 schools as he slashes the state education budget.

The governor said K-12 schools would be cut by 3.76 percent, while two-year colleges, four-year colleges and all other items in the Education Trust Fund would be sliced by 11.17 percent. That's about $110 million to be cut from local school systems, $129 million from higher education, and $24 million from other ETF spending.

Siegelman must cut about $266 million from the $4.3 billion school budget to make up for lagging revenues. In doing so, Siegelman said he is now bound by a provision enacted during the 1995 overhaul of state school funding that prohibits reductions in the salary of any K-12 employee.

"The 1995 legislative act protects all salaries in K-12," he said in a statement. "That is the law, and until the Legislature changes it or the Alabama Supreme Court reinterprets it, I must follow it."

Opponents dispute the interpretation of that law, or that Siegelman is bound by the present interpretation by the attorney general. Thursday's decision prompted immediate predictions of a court challenge by the state's public universities, which have gone to court to fight previous efforts to saddle them with larger cuts.

Historically, cutting budgets in mid-year, a process called proration, has been accomplished by cutting an identical percentage out of every item in a particular fund. If such across-the-board cuts were applied this year, all education fund agencies would take a 6.2 percent hit.

But Siegelman claims he is bound by a 1995 law as interpreted by Attorney General Bill Pryor in an opinion dated Feb. 28 of this year. Pryor's interpretation said it's legal for Siegelman to compute proration by removing K-12 salaries, but that there are probably other legal ways as well.

That opinion was imported into a lawsuit brought by the Alabama Association of School Boards, the Mobile County school system, and other systems, which claim proration is illegal because it denies education essential to children. But the order similar to Pryor's opinion that was issued by Montgomery County Circuit Judge Tracy McCooey was frozen April 11 by the Alabama Supreme Court.

Lt. Gov. Steve Windom said that decision by the supreme court should have been the signal for Siegelman to return to the traditional across-the-board method.

"He has the court's stay of Judge McCooey to disregard the attorney general's opinion and cut at the 6.2 percent rate," Windom said.

Paul Hubbert, executive secretary of the Alabama Education Association, denied that Siegelman had such a free hand.

"We believe this is what the law requires," Hubbert said. "... For him to have done otherwise would have left him personally vulnerable to litigation since he would not be following legal advice of the state's chief attorney."

Windom predicted the colleges would ask the Supreme Court to stay the governor's action.

"I'm hopeful the court will issue an injunction requiring the governor to cut at 6.2 percent," Windom said.

Windom and other Republicans want to rewrite this year's education budget to reflect 6.2 percent cuts, technically taking the state out of proration and removing the decision from the court's hands. Majority Democrats in the Legislature have stymied those efforts.

Gordon Stone, head of the Higher Education Partnership, a college lobby group, would not confirm plans for legal action, but said the universities will fight.

"We will do whatever we have to do to defend our people's rights to be treated equally," said Stone, who accused the governor of a "lack of concern" for colleges.

Gordon Moulton, president of the University of South Alabama, echoed Stone, saying he, too, wants "all levels of education" to "be treated equally."

On Wednesday, university presidents rejected Siegelman's offer of $100 million in bond money to make up the difference in treatment. College chiefs say they can't take the money because allowing unequal proration establishes a dangerous precedent, and because using bonds to pay for operating expenses is bad policy.

Siegelman said he remained "sympathetic" to higher education and called on the presidents to change their minds.

"I have and continue to encourage higher education to accept this safety net to soften the blow," he said.

Local education officials reacted cautiously to the Siegelman announcement.

"It certainly is good news if it's true and if it doesn't go to appeal," Mobile County Assistant Superintendent of Business Operations Charles Willcox said. "But until I see the check, I don't have much to say."

Since most of the local property tax revenues have come into the system in the past few months, it will be at least another month before the system is forced to spend money as soon as it comes in.

Sandra Sims-deGraffenried, executive director of Alabama Association of School Boards, said more money now means school boards will borrow less and pay less interest, even if cuts revert to 6.2 percent later. So Sims-deGraffenried said she would advise against saving any of the windfall to protect against a reversal. "We'd say, when you get the money, spend it,"

The picture is less rosy at Faulkner State Community College, said Gary Branch, the school's president.

"We would have to take additional measures to meet those additional cuts," Branch said Thursday. "Some would be so devastating that I've rather not speculate on them right now."


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