Schools still facing budget crunch

By Staff
Jonathan Willis
Russellville city schools Superintendent Don Cox painted a grim picture Thursday afternoon as he discussed the system's financial condition.
September marked the second consecutive month the system failed to maintain a month's operating balance, which is required by the state department of education.
As a result, the system borrowed $300,000 to make up the deficit and remain in compliance with state requirements.
"If the state does not give our (appropriation) on time, we will have to borrow against our salary funds," Cox said.
The school's on-hand cash for operations now stands at $578,000, he said. Monthly payroll exceeds $1.4 million.
Cox said the system's revenue was up slightly last month due to in-lieu of tax money from the Tennessee Valley Authority and other revenue sources.
"That kept us from having to borrow more money," Cox said.
The school system has been hit hard by proration. As a result, school officials have nearly depleted reserve funds. School and city officials are looking at ways to fund the system.
One item that has been looked at is a one-cent sales tax increase for the city.
The city council is expected to vote on whether or not to pass a tax increase during Monday night's special called meeting.
It would push the tax from 8 cents to 9 cents in the city. Council members have been deadlocked on the issue so far.