I want to update you on our process for addressing the recent state budget cuts. Cabinet met on Monday, October 19, and Dave King (Director of Finance & Business Services) gave us more information about how the cuts will impact our budget. The total reduction for Heartland is $2,894,038, which is actually a 10.258% reduction, based on a per pupil amount. The reduction applies to the state portion of the following areas in our budget:
• State Aid for Special Education
• Teacher Quality and Phase II
• Teacher Quality Professional Development
• Professional Development Iowa Core
Des Moines Public Schools will also share in the reduction in State Aid for Special Education in the amount of $691,936. The result for Heartland is a $2,202,102 cut in the budget for 2009-10.
After considerable discussion in Cabinet, we have an initial timeline for decision-making about the 2009-10 budget, as well as a starting point for how we build the 2010-11 budget. Please note that these discussions are likely to go on beyond this timeline, but we wanted you to know our plans for getting this important work moving forward.
Next Steps
1. Cabinet members will individually begin the process and will:
• Review budget information from Dave King
• Review department budgets to identify areas for potential cost savings
• Review staff generated non-personnel cost-saving ideas from last spring
• Clarify what has been spent out of ARRA monies
• Review current ARRA priorities
2. On Monday, October 26, District Services Council (DSC) members will:
• Review current ARRA priorities and begin a process for reprioritizing how funds will be spent
• Begin to formulate recommendations about non-personnel and departmental budget cost-saving measures
• Discuss options for impacting current and future budgets, such as the Special Education deficit
3. On Wednesday, October 28, Heartland leaders will meet to:
• Hear latest information from Cabinet
• Provide input and feedback
4. On Monday, November 2, Operations Support Council (OSC) members will:
• Review current ARRA priorities and begin a process for reprioritizing how funds will be spent
• Begin to formulate recommendations about non-personnel and departmental budget cost-saving measures
5. On Monday, November 2, Cabinet members will:
• Review input from the Leaders group
• Discuss outcomes from work done in DSC/OSC
• Begin shaping recommendations
6. On Monday, November 9, Cabinet members will have an extended work session to:
• Confirm agency priorities
• Make decisions based on previous work/recommendations
7. On Tuesday, November 10, our Board of Directors will receive an update on our planning process, as well as any recommendations Cabinet might have at that point.
We are working hard to take some time to thoughtfully address these budget issues without dragging our feet to make decisions. There are many things our agency will have to formalize over the next few weeks. Until then, there are some things the Agency will be implementing immediately:
• Hiring managers will confirm all hiring decisions with Laura Gillon (Chief of Staff), Steve Prall (Chief of Operations) and Nola Bond (Director of Human Resources). We have not imposed a freeze on all hiring, but it is likely hiring will be very limited and have a focus on hard-to-fill positions. For now, decisions will be made on a case-by-case basis.
• Supervisors will be taking appropriate measures to significantly reduce overtime and only consider approval of mission-critical work.
• The Agency is not approving any additional out-of-area travel at this time; however, some out-of-area travel that has already been approved will be allowed. We will have a new process for determining when travel is needed to support mission-critical work in the Agency.
• All budget managers are reviewing discretionary spending on materials and equipment very carefully, limiting approvals to things that are essential for our work.
As decisions are made, you will be kept in the loop on what is happening and how you will be impacted and/or expected to implement any necessary changes. I know this is a topic that can cause concern on many levels, so I want to encourage you to stay in touch with me if you have ideas or questions about where we are or where we are going. I remain confident that we will be successful by continuing to work together to address this tough budget situation, and I appreciate your input and your support as we engage in this process.
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