That is because the board will have only 1.27 days of revenue with which to begin the year. Fiscal '03 begins Oct. 1, 2002. But Walters said the system won't go broke. If the City Council can't help, then the board will cut. The big cost Craig said 87 percent of the board's General Fund budget is salaries and benefits.
Salary increases to bring teachers to the national average are legislative mandates.
The Legislature passed an act last year providing for ways to suspend raises if growth falls below 3.5 percent in the Education Trust Fund. But the same act allows the Legislature to give a raise if growth falls below 3.5 percent. Insurance is another cost decided in Montgomery, said Walters. David Bronner, chief executive officer of the Retirement Systems of Alabama, said Blue Cross administers the state's health insurance program. The company can take a loss at any time to keep someone else from getting the state account, he said.