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Strayhorn warns of $800 million snafu

By J. Lyn Carl, GalleryWatch.com

Austin, TX – Texas public schools could go without major state funding for two weeks this year and some teachers could go without pay for a like period of time because of a snafu in payments to the Foundation School Program.

State Comptroller Carole Keeton Strayhorn delivered a letter to Gov. Rick Perry this morning warning him of the effects of legislation adopted during the 78th Regular Session that delayed an $800 million payment to the Foundation School Program as a one-time savings.

Strayhorn noted that the delay, changing the August 2004 payment to September 2004, was approved to help reduce the amount of cash necessary to fund the 2004 budget. However, she noted the delay was instead made effective for August 2003.

"This change will take many Texas school districts by surprise because they will have less than two months to prepare instead of the fourteen months originally envisioned," Strayhorn wrote in her letter to Perry. "The ultimate result could mean some schools will run out of cash and be unable to pay bills (including teacher salaries) at the end of this August.

Strayhorn warned that teachers "need to be aware that they could be put in harm's way if we don't get this fixed immediately."

Although Perry has not yet indicated what topics he will expand the call of the First Called Session to include, Lt. Gov. David Dewhurst this morning said some of the issues being considered included "fixing a small problem with the Foundation School program."

It is likely that when Perry announces what issues will be added to the call, the "small problem" of $800 million will be one of them.