AL Takes Over Finances of Coosa, Sumter Schools

MONTGOMERY, Ala. (AP) - The state school board has voted to take over the finances of the Coosa and Sumter County school systems, the first such intervention by the state since 2001.

The systems, without a big enough tax base to raise local revenues, have been struggling to pay bills after two years of cuts in state funding. Coosa school officials were turned down when they sought an additional loan from a local bank.

By intervening, the state can assist the systems in borrowing money and taking other steps to manage its finances.

About 30 of Alabama's 132 school systems are either borrowing funds or expect to do so because of budget difficulties.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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