PELL CITY – The Board of Education approved a resolution Tuesday night opening a line of credit at a local bank.

“This is the worst situation we’ve seen since the 1930s,” Superintendent Dr. Bobby Hathcock said. “Even last year we were getting money late.”

But last year and the years prior, the School System had money in reserve. There is no reserve now.

Hathcock said 11 percent proration last fiscal year ate away the School System’s reserve, and now the system is facing 7.5 percent proration this year.

The board unanimously agreed Tuesday night to open a line of credit up to $4.4 million from Metro Bank.

“It’s not like we’re going to the bank and borrow all that money,” Hathcock said. “We may not need it, but we might.”

He said any money the school board is forced to borrow, it will pay back as soon as monthly funds are received from the state.

Hathcock said with proration, school officials worry about meeting payroll, since the School System has no reserve and money from the state could arrive after the system’s payroll schedule.

“We are preparing for the worst and hoping for the best,” he said. “Is there a cause for concern? Yes. Is there cause for panic? No.”

Hathcock said he appreciates Metro Bank allowing the School System to open up a credit line in case of emergencies.

“I’m happy people think enough of us to extend a line of credit to us,” he said.

In other matters Tuesday night, the board:

• Accepted the resignations of Nora Ford and Angela Burrowes, systemwide custodians.

• Accepted the retirements of Crystal Coats III, a bus driver, and Cindy Armstrong, an Eden Elementary School secretary.

• Approved maternity leave of absence for Melissa Brisendine, an Eden Elementary teacher.

• Approved the family and medical leave for Casey Brown, a Pell City High School lunchroom worker.

• Approved adding the following people to the substitute teachers list: Kimberly Harigel, Cynthia Isbell, Tim Isbell, Amy Bowman, James Bently, James Daffron and Pamela Compton.

• Approved adding Francis Garrett and James Bynum to the substitute special needs bus aide list.

• Approved the second and final reading of the policy regarding the placement and use of the automated external defibrillators.

• Approved the first reading of the policies pertaining to parental involvement and school wellness.

• Approved revising job descriptions.

• Elected board member Mike Price as the delegate for the 2009 Alabama Association of School Boards Convention and Delegate Assembly Dec. 3-5.

• Elected David Murphy as the new board president, Eric Hicks as new vice president of the board and Hathcock as secretary to the board.

• Approved 2009-2010 Continuous Improvement Plan for all schools.