Business Office staff put together the following questions and answers relating to the federal budget cuts known as sequestration. If you have further questions, contact Kurt Subra, Chief Financial Officer, at ksubra@aea11.k12.ia.us.
Q: What is federal sequestration?
A: Sequestration is an across-the-board approach for cutting federal expenditures. It was triggered by federal legislation after Congress and the President failed to agree on a solution to reduce federal deficit spending.
Q: For what period of time will sequestration be a concern?
A: The sequestration legislation reduces federal spending each year for a ten-year period. Some areas of the federal budget are not impacted (Social Security, interest on the federal debt, etc.), and that is putting more pressure on spending for defense and “discretionary” programs, including public education.
Q: How much federal funding does Heartland AEA receive, and is this amount comparable to what local school districts receive?
A: The Agency receives about one-third of its annual funding from the federal government. Almost all of these funds are for special education services. By contrast, local school districts generally receive 5% or less of their funding from the federal government.
Q: How much federal money will Heartland lose in 2012-13 and 2013-14 due to federal sequestration?
A: Because of the federal funding cycle, we aren’t anticipating any federal funding reductions in 2012-13. At this time we believe that our federal funding could be reduced by 5-6% in 2013-14. The 2013-14 reduction would be approximately $1.6 million, and a portion of that reduction is shared with the Des Moines Public Schools.
Q: I’ve heard national news media of reports that some federal government employees are/will be receiving notice that they will have to start taking time off without pay as a result of the mandatory budget cuts that went into affect on 3/1/13. What will be the impact on Heartland AEA employees who are paid with federal funds?
A: Heartland employees are not “federal government employees,” and Heartland currently has no plans for employee furloughs as a result of sequestration. Heartland previously has managed state funding reductions (sequestration-like cuts of 10% in 2010 and its portion of the statewide $20 million cuts to AEAs in 2012 and 2013) without furloughs.
Q: Are there any plans for across the board reductions in force as a result of sequestration?
A: No.
Q: Some people in my job-alike group are funded by federal dollars whereas some are funded by state/local dollars. What criteria are used to determine which positions are funded by federal dollars? And can the funding source change for a given position?
A: One criterion is whether the Agency claims Medicaid reimbursement for services provided by the position. If it is, then the position cannot be paid from federal funds. And yes, a position previously paid from state/local dollars could later be shifted to federal funding, and vice versa.
Q: In the event of federal funding shortfall, is it possible that some employees could be treated differently than others based on being funded by federal or state/local funds?
A: There is no intention to treat some employees differently based on being funded by federal or state/local funding. Occasionally employees are hired under a specific grant or project and their employment could be impacted if and when funding runs out. This is rare and employees potentially affected are informed up front of this possibility.
Q: How does sequestration impact our state and federal mandates for providing special education services?
A: The mandates are unchanged regardless of funding levels.
Q: Is there anything that the state of Iowa can do to offset the federal funding reductions?
A: Yes. For the past two years Iowa’s AEAs have been negatively impacted by a $20 million reduction in state funding (all special education dollars). Restoration of these funds would offset the federal sequestration impact.
Q: What, if anything, can I or other concerned citizens do to advocate for restoration of state funding for AEAs?
A: You and the families that you serve are invaluable advocates to our state representatives and senators. It is helpful to have those we serve send letters of support to the Governor and members of the legislature and for advocates to speak at local legislative forums.
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