Facing a shortfall in anticipated revenues for 2002 and 2003, the APA Board of Directors voted at its June meeting to make a series of budget cuts to ensure the association ends the year with a budget deficit of no more than $1.6 million and has a break-even budget in 2003, as mandated by the Council of Representatives.

"We have to bring spending in line with revenues," states APA Chief Executive Officer Raymond D. Fowler, PhD. "But we will do so in a way that minimizes the impact on the association's core missions."

The budget cuts affect all aspects of Central Office operations, and affect some governance activities and member services, as well. Some reductions in staff salaries and benefits--the association's largest expense-- will be necessary to reduce the association's overall spending. APA staffers were offered voluntary early retirements, reduced work schedules and buyouts.

Other budget actions included:

* The cancellation of one round of board and committee meetings in both 2002 and 2003.

* The cancellation of the 2002 Educational Leadership Conference.

* The cancellation of the 2003 Division Leadership Conference.

* A 50 percent reduction in the Office of Communications research and development fund.

* A dues increase for 2003 of $10.

* An increase of $20 in registration fees for APA's 2003 Annual Convention.

--R. FARBERMAN