MONTGOMERY, Ala. (AP) - Gov. Bob Riley has dipped into a reserve fund to prevent a cutback in state spending for public schools and colleges.
In a letter dated March 5, Riley said he transferred $175 million from a state reserve fund to the state education budget to avoid proration due to lower-than-expected state tax collections.
The Legislature and governor built the reserve fund to $440 million during years when tax collections were growing faster than expectations. State law allows the governor to withdrawn money when
Riley's press secretary, Tara Hutchison, said the governor expects to make a total of $375 million in withdrawals to finance the current education budget of $6.7 billion.
(Copyright 2008 by The Associated Press. All Rights Reserved.)