Budget Update

In our continued effort to keep you informed regarding our agency budget, we are providing this update of the budget impact from legislative action and how that affects current Board and Cabinet discussions. The legislature fully funded the 2% allowable growth for FY 2010-11. This means they did not continue the $3 million funding cuts of this year into next year. We believe legislators recognized that AEAs do not have taxing ability and do not have any way to recover funds that are cut other than reducing staff. Also, the legislature exempted Teacher Salary Supplement (TSS) funds from future across-the-board funding cuts that may be enacted by the Governor. AEAs were treated very fairly by the Governor and legislature this year. We are appreciative of this support and should thank our legislators whenever possible.

FY 2010-11 Budget
The budget for fiscal year 2010-11 was completed in January and approved by the Board of Directors in February. It is available to view by going to the Agency’s website at http://www.aea11.k12.ia.us/accountability. The unexpected full-funding level and the availability of American Recovery and Reinvestment Act (ARRA) funds to support special education programs during FY 2010-11 will allow the Board and Cabinet additional time to planfully determine programs and services delivery levels for 2011-12. During the upcoming year, the Agency will continue to look for ways to reduce spending, add efficiencies and protect staff and clients as much as possible. We are mindful of the standards to which we are held accountable as an agency, and we will stay focused on our mission and will continue our efforts to create a culture of austerity.

While we all have used our best efforts to make non-personnel cuts and reductions, we have decided to move forward by not filling some positions left vacant due to resignation or retirement for the upcoming year, FY 2010-11. These decisions were made by Cabinet using a decision-making process and a set of specific criteria. The positions not being filled for 2010-11 are one partnership director, one professional learning and leadership consultant (online learning), one special education program assistant and one special education clerk. We are in the process of discussing how to cover the functions of these positions with remaining staff. We will also continue to follow our process to review all vacancies moving forward.

FY 2011-12 Budget
For FY 2011-12, ARRA funding will no longer be available to help support special education services, and there is concern that the state’s budget difficulties will potentially reduce education funding. It’s difficult to predict what the economic situation will be in two years and what legislation might be passed that will impact the FY 2011-12 budget. Given these uncertainties, we believe the Agency will continue to face budgetary challenges. These challenges will require the Agency to “right size” itself, set service level priorities and meet program needs in a more cost efficient manner. One step that has already been taken for FY 2011-12 was the decision to reduce the Agency’s Team Leader positions (Team Leader for Behavior Supports and Team Leader for Special Education Accountability).

Going forward, we will continue with our culture of austerity including the following:
• Using technology to the best of our ability to hold meetings and conduct professional development in order to reduce spending on mileage and meeting space rental
• Reducing the number of printed materials and handouts the Agency uses/distributes
• Eliminating agency-purchased coffee and food at internal meetings
• Closing the Woodside office as scheduled on June 30, 2010

We also want you to know that we continue to recognize staff members’ concerns about workloads. We are attempting to define what workload capacity looks like, and we hope to implement a workload capacity resolution process. So please know that we are mindful of workload capacity issues, and we are moving forward to find a resolution.