Area governments brace for state budget cuts

Iowa Governor Chet Culver announced Thursday a 10 percent across-the-board cut in spending from the state?s general fund. State Representative Larry Marek said the move was prompted by the revelation that the state?s revenue will decline 8.4 percent by the end of the current fiscal year. The Revenue Estimating Conference put the expected revenue shortfall at $414 million. 

?This is going to be a painful stretch for all of us in Iowa as we miss some of the services that have been so available,? said Marek. ?This shortfall will affect our schools, health care, elderly programs and many other services that we have taken for granted ? The Governor had little choice with this action as the state must live within its means.?

Speaking on the effect the cut will have on schools, Chris Bern of the Iowa State Education Association said that the cut does not impact schools? spending authority. Bern advised school districts to dig into their cash reserves rather than cut services or raise property taxes.

?Iowa?s students should not be short-changed by inadequate course offerings or lose access to world-class educators because districts did not want to dip into their cash reserves, utilize the Iowa School Cash Anticipation Program (ISCAP), or use other resources available to them,? said Bern.

Washington Superintendent Dave Sextro said the cut will slash between $850,000 and $900,000 from the school?s budget for the current 2009-2010 school year.

?We?re still digesting the total effect of this cut,? said Sextro. ?Every superintendent in the state is scratching their head right now, trying to figure out how to make up for this lost revenue.?

Referencing calls from state authorities to use cash reserves, Sextro commented, ?If you don?t have cash reserves, the only options available to you are cutting programs or raising taxes.?

Sextro said there are a few factors that complicate a sudden reduction in expenses for the current school year. One of those is that the school district has already signed contracts with the teachers union and the support staff for the entire school year. The district would have to wait until the next fiscal year before any changes could be made to labor costs. 

For the full story, see the Oct. 9 edition of The Washington Evening Journal