community colleges and four-year schools — is $6.7 billion. The general fund appropriations for everything else in state government — Medicaid, mental health, conservation and agriculture — are $1.84 billion. When you look at the $6.7 billion education budget, there was a projected balance of $398 million at the end of the year that just ended in September, when in essence, we had $280 million. So, that estimate was overrated by $100 million — not by the Legislature itself but the people who usually do an excellent job with those numbers. But, there has been such a dramatic change in the economy that they missed that estimate by what probably is not a very big percent, but it is over $100 million. Also, the growth in the Education Trust Fund began to slow down in the late spring. And then receipts in the Education Trust Fund finished about $120 million less than projected. So, you see that’s another $120 million down. And overall — private corporate income tax was $84 million less than projected, sales tax was $26 million less than projected and the use tax, $15 million — the four grew at 6.5 percent, and that was probably about 5 percent less. So, 5 percent of $6 million is over $300 million. But we do have a safety guard. We’ve got $428 million in that proration account, so if we had not put that in there, it would be big trouble. In addition, there is the constitutional account — money that can be taken out if the governor declares proration. The other way it can be taken out is if it looks like it’s getting close and getting bad, but if the governor declares proration, this is the only way this money can be taken out. And, of course, a big chunk of this money was taken up in the 7 percent pay raise that the teachers got in the start of 2008, and each retired teacher, instead of getting a percent pay raise, got just a regular $600 before taxes. Some of the teachers that taught years ago, 25-30 years ago, are still in relatively good health and still going strong, and they just don’t make enough to live off of with their retirement. I’m glad we could help, and I’ve always supported retired teachers. But, sometimes that money has to come out of the boards’ pocket, and boards of education are always fighting trying to keep their heads above water. That’s what we try to take into consideration in every pay raise. But the biggest challenge facing education is the financial woes. Once you hit that threshold and build it up, it’s hard to ever go back. Thank goodness we did have money set up in these proration accounts, which is going to save us this year. And hopefully we won’t be in proration. With that Rainy Day Fund, we’ll have enough carryover and all without proration. ◆ Casey: That was going to be one of my questions. Do you anticipate proration this year? ▲ Mitchem: Odds are that eventually — if you take that proration prevention account and you do have to use that money — that it will probably be enough. It’s going to be close. Again, we don’t know when the upturn in the econ-
omy will be. Right now it’s atrocious. When you look at everything that’s happening with the economy right now, nobody could have anticipated a year ago that we were going to be in this recession, and it’s everywhere. All receipts are down. ◆ Casey: Local school boards stretch every dollar, but we still
face unfunded state and federal mandates. How would you suggest school boards manage these? ▲ Mitchem: You just have to plan ahead. Try to watch your budgets, which you do, and not overspend. Make sure you do a good job on spending what you’ve got and trying to use the state Board of Education to help you with projections and to get through a crisis. ◆ Casey: There are attempts at the state level to impose a
statewide uniform school calendar and to allow students who go to private schools or are homeschooled to participate in public school extracurricular activities. What are you feelings on these issues? ▲ Mitchem: I would personally like to see us — someway, somehow — start school at one time and take the same vacation. I think in the next two or three years, that will happen. I don’t see it happening this year. This year, Laura, the economy has really got us in a tight situation. It seems to me like half the people want a uniform start and ending. It doesn’t really bother me to leave it up to the local school board — that’s where it probably ought to be — but I still think it would really be a little bit helpful if everybody pretty much started within the same week rather than a month apart. Now, if someone is in a private school or home school and wants to participate in extracurricular activities in the public schools, About Sen. Hinton Mitchem: ... well, I’ve never been asked that Born in Oconee County, Ga.; has a question, but I would be against that. bachelor’s degree in education from the University of Georgia; I would think I would be for making father of three children: Todd, them either attend the school and be Tonya and Derrick. involved in everything or just have to What he does: Elected president do without. pro tempore of the Alabama Sen◆ Casey: What is your top public eduate Jan. 9, 2007; represents the cation goal for K-12 during your state’s 9th District, which includes tenure in the Legislature? Blount, Madison and Marshall ▲ Mitchem: It would have to be — counties; serving his eighth term in everybody would probably say this the Senate after serving one term — getting adequate funding that puts in the House of Representatives. us on the level of some of our other Committees: Agriculture, conserstates and not to be on the bottom vation and forestry; commerce, end of the funding. We’ve got to get transportation and utilities; confirmore local support because there is mations; finance and taxation; not enough money in Alabama to general fund; health; rules; and fund every school — from capital veterans and military affairs. outlays to books, teachers and beneContact him: 334/242-7876 fits. But, I guess just being able to get or 256/582-0619 (Continued on page 26) Alabama School Boards • Januar y l Februar y 2008 11