Governor Riley taps Rainy Day Fund to prevent education cuts - WBRC FOX6 News - Birmingham, AL

Governor Riley taps Rainy Day Fund to prevent education cuts

MONTGOMERY, AL (WBRC) - Governor Bob Riley on Monday released $100 million from the state's education "Rainy Day" fund to help maintain proration at its current level.

The $100 million will prevent further education cuts from occuring throughout the state's education system.  In December 2008, Governor Riley declared proration, which is a term used to describe the process of cutting spending when revenues fall short of expectations.  To lessen the impact of cuts at that time, the governor released $221 million, which is about half of the amount available.  Monday's disbursement leaves about $116 million in the fund.

"The world-wide recession is continuing and we need to release this $100 million right now to maintain proration at its current level," said Governor Riley.

Powered by Frankly