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Birmingham city schools' enrollment dropped by 868 students this year, and the system will lose more than $5.5 million in state funding next year as a result, new attendance reports show.
School systems submitted their 20-days-after-Labor-Day attendance reports and the state will certify them next week. That official enrollment number - called "average daily membership" - is what the state uses to fund schools. Growing schools receive more state money as a result, but schools with declining enrollment lose funding for teachers, principals, assistant principals, counselors and librarians.

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Gov. Bob Riley plans to put $6 million into the proposed education budget next year to fund a pilot program for teacher merit pay in the state's neediest school systems.
The governor said the idea is worth pushing even though a 2007 attempt to get legislative approval for such a program failed.
"There is not another segment of society that doesn't reward its workers for a job well done," Riley said in an interview last week. "I think merit pay works, and I think it's something teachers want."

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