Funding cuts to state agencies could mean loss of jobs

The Iowa Board of Education on Thursday approved a 2015-16 budget for the state's area education agencies that includes a slight decline in overall revenue.

But the director of the agencies - which provide support for special education and other services to Iowa schools - said it's inadequate funding by the Legislature that likely will mean job and service cuts next school year.

For each of the last three years, Iowa AEA Executive Director Brent Siegrist said, the Legislature has provided the agencies $15 million less than is called for in the state's education funding formula. The year before that, he said, it was $20 million less.

The nine agencies have been able to weather the deficiencies by using cash balances and stimulus money, Siegrist said. But those are either running out or not available for next year, and many of the agencies are anticipating job losses if the trend continues.

'Next year, it's going to be painful,” Siegrist said. 'The money we get from the state through the formula, this is all special education money. This is a cut to the most vulnerable kids.”

It's not clear what 2015-16 funding level legislators will approve for the agencies. House Education Committee Chairman Ron Jorgensen, R-Sioux City, said past funding levels have been part of attempts to balance the state budget. But he wasn't sure what level was planned for next year.

Legislators 'can't even make a decision on what schools are going to get, much less where the AEAs are going to land,” said Jeff Berger, a deputy director of the Iowa Department of Education.

Siegrist - who also is a former speaker of the Iowa House - said he did not know how many jobs would be lost statewide if the Legislature's past funding levels continue. The Grant Wood AEA, which serves schools in Cedar Rapids and Iowa City, is in better shape than others, he said.

But any staffing losses would mean the remaining staff would be spread thinner and have less time with each student and school, Siegrist said. The agencies have considered eliminating some services, he said, but that likely would mean school districts would be providing those services without help.

The budget passed Thursday by the state Board of Education totals about $427 million for the nine agencies. That includes the $15 million the agencies do not anticipate getting, Siegrist said, as well as about $34 million in cash balances.

The budget also is based on no increase in state supplemental aid for education, he said - a major state funding category. The Legislature has not yet decided on a funding level for that category.