ATLANTA - Atlanta Public Schools Superintendent Erroll Davis says the district is starting the school year with $10 million cuts.

The district is already faced with a budget gap and rising costs from an ongoing cheating scandal. Davis said Friday the district will spend almost $1 million a month to keep nearly 130 employees implicated in the cheating scandal home on paid leave while hiring their replacements.

Davis said "there's no one big item" the district can cut to find instant savings. But he said he will present a range of options for the school board to consider in the run-up to the Sept. 12 meeting.

Davis said the district may have to increase class sizes, furlough employees for additional days and consider layoffs to bridge the funding gap.