Chief financial officer Arthur Watts tells The Birmingham News the city is paying $17 million in salaries and benefits this year with one-time federal stimulus money.
That won't be available when fiscal year 2012 starts on Oct. 1.
Watts says the district is also losing about $8 million in state funding because of declining enrollment and about $5 million will be lost to an anticipated 4 percent proration in 2012.
Watts says that means the city will need to close and consolidate more schools, sell surplus property and have mass layoffs.
Superintendent Craig Witherspoon says he's working on a plan to address the budget crisis.
He says layoffs will definitely be necessary.
(Copyright 2011 by The Associated Press. All Rights Reserved.)