Montgomery, AL – The new state education budget that takes effect Thursday is being cut 7.5 percent due to the recession.
Gov. Bob Riley said Tuesday he had to order the proration, or across-the-board cuts, because less tax revenue is coming in and health insurance costs are escalating.
The cutback for the new budget is less than the 11 percent reduction in the current budget, which ends on Wednesday.
Cutbacks are also planned in the new state General Fund budget that begins Thursday. The Riley administration has warned most agencies to expect 3 percent less than they were appropriated for the first nine months of the fiscal year.
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