With tough times looming ahead financially, there is some good news right now to report in the Dallas County School System, said school officials.

The State Department of Education has predicted that the school system would have to borrow money for the 2001-2002 school year to meet payroll. But Don Willingham, assistant superintendent for the school system, said county schools have not had to borrow thus far.

Willingham added that he hoped that by the end of 2003, the school system would finish the year in the same situation.

Despite the good news, he said that the 2003-2004 school year painted a slightly more dismal picture.

On another sour note, Willingham added that the school system would also be forced to operate with less money during 2003.

He noted that the school system would be receiving $500,000 less this year in State bond money and would also lose money due to the loss of seven teacher units.

The units, he said, are determined based on the number of children in the school system, a number that has declined since last year, according to attendance numbers tabulated by the school system.

He added that the system would also not be able to use the &uot;flexibility of $ 650,000,&uot; money given by the State, which Willingham said is normally used to pay operation costs.

Willingham explained that flexibility, a term meaning that the school system can spend the money any way it wishes, was taken away from the school system this year in relation to this amount.

Willingham further noted that all money provided through local taxes is &uot;contractually obligated,&uot; meaning it must be used to pay certain required expenses, some of which must be paid in order to receive State money.

Dallas County School System Business Manager Susan Taylor added that grant money could be used to help fund certain school projects, but that it could not be used for most expenses.