What does a 10% across-the-board cut mean for us?

As you have probably heard, the Governor issued a 10% across-the-board cut late last week.  For AEA 267, the reduction means a loss of approximately $1.5 million in state funds.  While we had anticipated an across-the-board cut for some time, it turned out to be quite a bit larger than the 5-6% we were predicting.  With State revenues predicted to fall 8-9% short of prior expectations, including a 19% shortfall in August, the Governor’s response was inevitable.

Of major concern is how does this affect the Agency; and based upon questions I’ve received, how does this affect me?  I do not have clear answers at this time.  While we know the size of the cut, we also have property tax dollars, federal dollars, and one time ARRA funds to mix into the equation.

What is very likely to happen:

• Except where judged to be critical, unfilled positions will not be filled.
• New capital and equipment expenditures will be sharply curtailed, except where commitments have already been made.
• We will increase our efforts to use technology to reduce travel expenditure, turn out lights, lower thermostats, etc.
• We will have fewer employees in 2010-2011 and 2011-2012 and beyond.
• Our commitment to children, families, and educators will be as strong as ever.

What might happen:

• Retirements and resignations will cover the vast majority of anticipated needs to reduce the number of staff at AEA 267 due to long term funding cuts.
• Our assignments and work may need to be reviewed as we serve our schools within the confines of our resources.

What will most likely not happen:

• Immediate and massive lay-offs.  (We can use reserves for the short-term.)
• Status quo.  (We anticipate State revenues will be limited for a number of years.  We will need to adjust accordingly.)

I will keep you posted as developments take place. As always, thank you for your ongoing commitment to children, families and educators.