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Construction projects are put on hold. Field trips have been canceled. Teacher contract days have been trimmed.

Dollars for education in Alabama have become sparse, and school officials are writing checks only for what one local school superintendent deemed as 'absolutely necessary.'

'It's a very serious situation, like nothing we've ever seen,' said Opelika City Schools Superintendent Mark Neighbors, whose system is operating with $5.5 million less this year than last. 'We're trying to manage money where people don't see it or feel it.'

But change may be on the horizon.

'Of all of the dollars for state education ($5.73 billion), almost one-third are for benefits,' State Schools Superintendent Dr. Joe Morton told the Opelika-Auburn News. 'That means one-third doesn't make it to Auburn or Opelika public schools for books, desks or supplies. They go to benefits of employees. There's only two-thirds left. If we're going to spend one-third on benefits, then there's little left for schools.

'We are in the second year of proration. The state has no money to allocate for teachers' support. No money to allocate for librarians. No money to allocate for technical support. No money to allocate for teachers' professional development. That's not a way you build a world-class education system.

'In the times we're in now, there's nothing left for the classrooms, and that's where the future of the state lies.'

Proposed changes
Morton said the only way benefits can continue at their current level was to require an extra $238 million in health insurance and $57 million in retirement benefits. Teachers and other education employees in Alabama might have to pay more for health insurance coverage and retirement benefits if a proposal issued by the State Board of Education is passed next year in the Legislature. Part of the plan, presented last week by State Schools Superintendent Dr. Joe Morton to Gov. Bob Riley, calls for employees to pay for 6 percent of their retirement rather than the current 5 percent.

However, the uproar on Internet message boards and letters to the editor revolved around the proposal to increase education employees' insurance rates, which are currently $2 monthly for individual coverage and $134 monthly for family coverage.

'During pro-ration, teachers don't get a raise,' said Mike Miller, who teaches fifth grade at Loachapoka. 'They say, 'Well, we do this to keep the insurance rates balanced.' But that won't compensate for raises missed in years past. He (Dr. Morton) never pointed that out.

'We are often compared to other state employees when someone talks about health coverage, but have you ever heard or read a comparison concerning vacation and holiday pay?'
In 1986, educators paid $2 for individual coverage and $95 for family coverage monthly, complemented by $60 PEEHIP state funding. While individual coverage has remained unchanged and family coverage has increased by 41 percent, state funding for these costs have increased to $752 monthly, or 1,153 percent.

'Things are disproportionate now,' Morton said. 'The state picks up too large of a share of benefits. Rates have not changed in 25 years.'
In 25 years, the average salary for a teacher in Alabama has increased from $23,040 to an estimated $48,906, according to the Alabama Education Association. That figure is roughly $5,000 less annually than the national average.

Morton said he'd received only a few messages opposing his plan, which could go into effect next October at the earliest.

'I think most teachers and education employees know something has to change,' Morton said. 'People realize this can't go on forever.'

Even Alabama Education Association Executive Secretary Dr. Paul Hubbert believes educators may have to open their pockets.

'We're looking at every available option,' he told the Opelika-Auburn News. 'We are probably going to have to ask them (teachers) to do something out of pocket.'

Exactly how much isn't known. Morton has recommended to the Legislature that K-12 receive ' at a minimum ' 70 percent of all state education budget expenditures, which includes higher education. Currently, K-12 receives 68.8 percent. An increase could offset costs and keep insurance rates lower.

'Obviously, we've got to pass a balanced budget,' Hubbert said. 'We've got a good bit of time before now and then to figure it all out. I do suspect we will have to look to members for some help this time. We are going to have to make adjustments in some areas, including health insurance. But we want to look at all of the facts and figures first.'

Hubbert said the health coverage system for educators in Alabama, which began in 1983, covers roughly 230,000 employees and their families.

'How do we save money?'

Auburn City Schools Superintendent Terry Jenkins, who has served on the Alabama PEEHIP and teachers' retirement boards, agrees with Morton.

'I don't think yhere is any way you can justify to the general public that $2 per month is an appropriate amount for educators to pay for health care,' he said. 'Maybe family coverage is in line more than individual coverage.'

Lee County Schools Superintendent Stephen Nowlin said he did not believe the state's current revenue would sustain 'this level of education.'

'I feel some sympathy and understand why nobody would want to pay more, but when you look at what most people pay for this in the corporate world ...,' he said. 'We either raise employees' contributions or cut the number of employees enough to keep us insured at the same level. Some organizations think we don't want to lose teachers and we don't want to pay more for insurance, but both are not mutually exclusive.

'Every year we are faced with issues and we have to ask, 'How do we save money?''

Jenkins, whose school system is operating with $5 million less this year ($59 million to $54 million), said similar proposals had been made ' and shot down ' in the past.

'It was obvious to me during that period of time that a vast majority of board members are also members of the AEA (Alabama Education Association) and will follow the direction of Dr. Hubbert,' he said. 'There were proposals to raise the individual coverage amounts by $5, $10 and $15. Only three members of the board voted for that ' myself, the finance director and Dr. Morton.

'People say, 'We passed up teachers' raises to protect and keep this.' But Dr. Morton has made a proposal that is reasonable. We never had a year when teachers did not get a pay raise.'
Neighbors noted, 'Most folks would like around and say, 'If it's worth saving jobs, then I don't mind paying more for individual coverage.' Everything has to be looked at.'

'Beyond blessed'

Neighbors understands that schoolchildren in Lee County are fortunate to live in a growing area.

'In Lee County, we are beyond blessed,' he said. 'If not for local revenue, we'd be in terrible shape. Eighty-percent of state revenue comes from jobs and revenue tax.'

Neighbors reported that $11.8 million of Opelika City Schools' $40 million annaul budget comes from local tax revenue.

'Some counties having to borrow to pay salaries, etc.,' he said. 'There are many systems that have started borrowing money to operate. Most systems don't have the local revenue that we have to pay the debt off.'

How does one such county pay the debt?

'They pray for the economy to rebound,' Morton said. 'It takes several years to pay it all back and a mighty understanding banker to make it work.'
Jenkins recognized Lee County as the 'sixth-fastest growing county in the state.'

'But there are other school districts that have maxxed out at the bank,' he said. 'What if you're in an area that doesn't have that? It's not fair to the child that lives in these areas.'
Nowlin pointed out that sales tax revenue in Lee County ' a crucial artery for education funding ' was 20 percent lower in October than it was in October of 2008.

'It's my responsibility to keep our budget balanced, instead of it declining precipitously,' said Nowlin, whose system is operating with $72 million annually instead of $76 million.
Miller understood that money is tight, but didn't believe everything he heard from the proposal.

'I don't buy it. It's a state agency and there's waste,' he said. 'Like any state agency, you don't have to look far to see waste. It's frustrating. We have funds, some go in different directions and are earmarked. We've got textbooks here. My heater and air conditioner work when I need them to. I don't see a shortage.'