Gov. Riley Dips Into Rainy-Day Fund for Schools
By Associated Press
Montgomery, AL – Gov. Bob Riley released $100 million from a state rainy day fund Monday to keep education proration at its current level.
Riley declared proration in December because of sagging state tax collections. The initial cut was 12.5 percent, but Riley immediately pulled $221 million out of a rainy day fund to reduce it to 9 percent. Riley said the extra $100 million Monday will allow proration to remain at 9 percent.
Alabama still has $116 million left in its rainy day fund for public education, with two months to go before the end of the state's fiscal year.