Exact dollar impact still to be seen in state budget cuts

Officials at many public and non-profit agencies aren't sure what a 10 percent state budget cuts means to them, but they know it can't be good.

David Miles, president of the state Board of Regents, said last night he was ordering a systemwide hiring freeze and a moratorium on new building construction, except those directly related to flood restoration at the University of Iowa.

He said the regents would meet Wednesday to discuss additional cuts. The University of Iowa cut 40 teaching assistant positions this year and publicly discussed the possibility of cutting more of those positions - mainly graduate students - should budgetary constraints tighten.

“Difficult days life ahead,” Miles said.

The cut means cutting approximately $8.4 million in the Cedar Rapids school district. The district will cover that loss by dipping into its reserve fund, which had been slated to reach $15 million by June 30, business manager Steve Graham said.

Given the available reserves, Superintendent Dave Benson said he doesn't see staff cuts in the immediate future.

Gov. Chet Culver has said he will seek legislation requiring school districts to use cash reserves, rather than turn to taxpayers.

Leslie Finger, business manager for the Iowa City school district, a fast-growing district that already is facing budget challenges, said the district doesn't know how much it will lose in the cuts, though he knows it will be “a lot less cash.”

“We need to know exactly what the impact will be before we move forward,” Finger said.

Jessica Lown, spokeswoman for the Department of Public Safety, said division directors will go through the budget “line by line,” but will try to spare essential services, such as state troopers and the Division of Criminal Investigation.

Area non-profit agencies that provide state services are waiting to find out the full impact.

Some programs - like Meals on Wheels, which is administered by Horizons, the Cedar Rapids family service agency - are twice removed from the source of funding. About half the Meals on Wheels budget comes from The Heritage Agency.

“Until we know how (the cut) affects Heritage, and what Heritage decides to do with that, we don't know,” said Scott Jamieson, Horizons chief operating officer. Still, “a cut of this magnitude ... results in rationing of services almost by default.”

“They're either going to have to look at cutting programs or cutting people,” said Liz Mathis, spokeswoman for Four Oaks, which serves about 14,000 families statewide, including more than 800 children and youths in its residential treatment program.

Culver has said to expect reductions in work force and services.

Liz Hoskins, director of Waypoint Services for Women, Children and Families, said the agency's child care services for low-income families could face cuts even as a stalled economy drives demand upward. Waypoint's program for survivors of domestic and sexual abuse also could see a cut of more than $10,000.

“That's part of a (staff) position, and we're trying to add staff right now,” Hoskins said. “We can still serve victims of abuse and violence. The thought of turning away kids is very concerning to me and the board.”