Alabama board reverses course after criticism from governor.

MONTGOMERY, Ala. (AP) -- The state school board has voted to release $20 million for spending agreements that former interim Chancellor Thomas Corts arranged before his resignation, with Gov. Bob Riley admonishing the board for implying that Corts had acted improperly.

Board members last month froze distribution of the $20 million in discretionary funds, saying they hadn't known about them and the timing was suspect.

But new Interim Chancellor Renee Culverhouse, who had been asked to research the arrangements that Corts finalized hours before resigning Feb. 28, presented a report that said the agreements are "legal and binding."

"Interim Chancellor Tom Corts had the legal authority and capacity to enter into the agreements at the time he signed them," she said.

The arrangements call for up to $2.3 million for the Alabama Department of Economic and Community Affairs and at least $17.6 million for workforce training at the Alabama Industrial Development Training institute.

Riley, who had recommended Corts to lead the beleaguered system, was angered by suggestions that the former Samford University president had done something wrong.

He said the board's move to freeze the money put Alabama's reputation "on the line."

"When we make a commitment to Toyota for workforce training or to Honda for workforce training and then through just a precipitous action of the board, you stop that and we can't make it, all of a sudden you are impugning the whole system that offers the best workforce training in this country, and I have a real problem with that," Riley said.

"We cannot negotiate contracts all over the world and then have it subject to being stopped by just an inference made by some of the board members."

The $20 million was part of $57 million in discretionary funds distributed by former two-year Chancellor Roy Johnson just before his contract was terminated on July 11 amid corruption concerns. Culverhouse, who served as interim chancellor after Johnson's departure, canceled those arrangements to ensure the money was spent appropriately.

Corts then worked to redistribute the money after the board hired him in July.

Board member Ella Bell said the board shouldn't be criticized for having reservations about Corts' actions because they were virtually identical to those taken by Johnson months earlier.

"When the news broke about the $57 million it was immediately, 'Take it back, don't let a dime of it go out,' and it was as if it was sinister then," she said.

Culverhouse, on leave as president of Gadsden State Community College, said she could understand why the board was concerned about the spending because members were never informed that Riley, Corts and finance director Jim Main had been discussing the funds for months.

Board member Mary Jane Caylor said she stood by her resolution to freeze the money but "deeply regretted" if it caused any delay in plans.

"All I'm asking and I'm pleading for this instead of being admonished about it, is for you to understand that we need to be involved enough on moneys that did have this cloud, this sinister atmosphere around it, so we won't keep getting blamed for being derelict in our duties," she said.

Board member Stephanie Bell said she and other board members were "shocked" by Riley's harsh words and he should be pleased they were trying to get as much information as possible to make sure everything is being done correctly.

"I've always said consistently that if Dr. Corts had informed the board of his actions, I had no problem with what he was doing," she said.