In this issue of The Connection, I am providing you with up-to-date information regarding both the recent articles in the Des Moines Register and the bleak state financial outlook. While these issues command attention, I know that our employees will continue to have a laser focus on our work: serving students, families, teachers, leaders and our communities. Stay tuned for regular updates in The Connection on important challenges ahead.
News Coverage
I am sure that most of you read the articles in the Des Moines Register regarding the area education agencies. AEAs have suffered from lack of exposure in the media for the outstanding services and supports provided to those we serve, and it would have been terrific if the articles had featured how we are making a difference for students, teachers and all others served. While we appreciate the content related to services to students, it was disappointing that the Register left out key pieces of information about budget and administrative issues. This means there are some inaccurate perceptions so here is information that tells the full story.
1. We have increased administrators within the agency.
Within the time discussed in this article, the Agency moved from a narrow definition of who an administrator was to a system of administrative function. This changed who would be charged to administration.
For example, our previous supervisor of all social workers would not have been an administrator in our narrow definition and would not have been included in administrative costs. We now have moved these functions to partnership directors to have decision-making closer to the work. Partnership directors are now charged to administration because of the wide range of responsibilities and administrative functions they provide.
Another example would be our special education clerks. These clerks are not administrators, but have administrative duties such as making appointments, disseminating paperwork and making phone calls. These functions would be included in administration cost.
The article also stated that secretaries have been promoted to administrators. Not true. But many of their functions would be considered administrative costs.
The article also did not mention the additional oversight that the Department of Education and the legislature have mandated for the AEAs. Just this year they added the Iowa Core Curriculum.
At Heartland, we have decreased administrators, four just this year, and decreased our administrators’ administrative staff. With those savings we were able to:
• Offer a 5% salary package increase
• Retain all direct services staff
• Increase early childhood staff
• Add special education clerks
• Add autism and challenging behavior positions
2. Some administrator salaries have increased dramatically.
It is true that we have promoted some individuals into new positions in the last five years. We are proud to have promoted from within our Agency. These deserving individuals have completed more education (some doctorate degrees), taken on increased supervision and moved from a 192-day work year to a 260-day work year. Many of their positions are areas that are hard to fill across the nation. Their salaries are in line with the positions they hold according to market comparison studies.
3. We cost the taxpayers more than five years ago.
The fact buried within the article is we increased only 21% compared to 22% that the state increased. Our growth is set by the state, and we fell within that growth. As with school budgets, our administrative cost is set by the state through statutes at 5%.
4. We were forced to merge.
This simply is not factual. The AEAs voluntarily merged, but to do so we had to have the legislature give us permission. The agencies made the request to the legislators.
5. Our mergers did not save taxpayers money.
The whole purpose of merging was to move more dollars to direct services. The system accomplished this by moving to one chief administrator for several regions. The mergers consolidated other administrative functions such as human resources, payroll, business services, etc. Money saved from these consolidations was moved to front line employees (direct services).
Budget Freeze
One thing I have learned during my career as a leader is to communicate more often during times when the budget is going to drop significantly. This is such an occasion. On December 19, Governor Chet Culver announced a 1.5% across the board (ATB) cut for the current 2009 fiscal year. He did so in response to the revised revenue estimates reported last week at the Revenue Estimating Conference (REC) the previous week. State law requires that the state budget balance, therefore, the ATB cut is a first step in meeting the requirements of the law. Larry Sigel of the Iowa Association of Schools Boards did an excellent job in a recent update of explaining some of the facts and here is information taken directly from his remarks.
• Given the uncertain state of the economy, no one can say at this time whether the spring estimate of the REC will be a revenue improvement or further reduction. The legislature does have the option to come into session and restore appropriations to priority areas. It is premature to assume the final impact without knowing the plans of legislative action likely in the opening weeks of the session.
• The state aid reduction is applied equally per pupil, not a strict 1.5% reduction to a school district's state aid payments. There is also a 1.5% reduction to categorical funds (the largest of these are teacher quality, class size, at-risk grants, educational excellence including Phases I and II and instructional support state match and pre-school grants not yet funded through the formula).
What does this mean at Heartland?
• Heartland will experience the following cuts immediately:
- Special Education Weighting= -$139,533.5
- ATB 1.5% cut= -$364,387.00
• Meetings will be held to determine what the Agency criteria are for future spending. The Decision Analysis Process will be used and the first meeting will occur in January. After the criteria are developed and communicated throughout the Agency, other potential cuts will be identified because the economic outlook is poor.
• Given the rising costs of basic services (electricity, phone, etc.) and the high likelihood that there will be further cuts, the Agency may have to look at personnel cuts for 2009-2010. The intention is to try and preserve as many jobs as possible.
• The Agency must find ways to continue support for the Iowa Core Curriculum, infrastructure concerns and identified district needs in spite of the budget landscape.
• The Agency will continue to pursue elimination of waste through the use of Kaizen processes and other approaches, in hopes of identifying funds that can be re-purposed.
• The Agency will continue to use data from all advisory councils to inform its work.
Laser focus on our work as prioritized
The Agency will continue to focus on the priorities as identified with input from all stakeholders. Specifically, we will continue to develop, improve and strengthen partnerships. With our partners, we will identify the highest needs of our districts and align our resources to meet those needs. We will continue to invest in and demonstrate our commitment to staff by retaining as many front line employees as possible in this time of crisis, as well as continue to create tools that will benefit all staff to ensure a stable and satisfied workforce.
For example, we will continue to address workload issues, provide high quality professional development and offer competitive compensation within the resources available. Finally, we will continue our transformation in using space from primarily storage and distribution to teaching and learning, ensure that we have technology tools and employ workflow analysis processes to eliminate waste and improve efficiency.
I am confident that our work will continue to be effective and successful because Heartland has outstanding employees who make a difference. As members of the Heartland community, I know you will continue to be our ambassadors where you go. Your voices have a major impact on how legislators vote and how our partners experience the Agency. I wish you all the best in the new year and encourage to you make your thoughts known through conversations with your supervisors, input to the Staff Advisory Council, the comment notes, e-mail, phone calls and visits. The best solutions to challenges come from within, from those most affected.
Maxine
When will staff be learning about personnel cuts and who this may affect? What process will be used to determine this?
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