Board of Directors

Board Approves Deficit Budget, Extends Schuer Term

By Steven LaneJune 12, 2019

Photo: PAEA

Tapping reserves now will help position PAEA for important investments in future member services.

In May, the PAEA Board of Directors approved the Association’s FY 2020 budget, which includes a significant projected deficit. The deficit includes one-time expenses related to the new PAEA Digital Learning Hub, website enhancements, and the CEO search — as well as the final phase of development of the End of Curriculum™ exam, which will launch in 2020 and is expected to have an impact on revenues.

The Board also voted to extend the term of one director at large by one year, in order to better stagger the terms of the six directors at large on the Board, and to reduce turnover in a year when the Association will also welcome a new CEO. Kevin Schuer, DrPH, PA-C, was selected by a random method from among the directors whose terms were due to expire at the end of 2019. Director at large terms were extended to three years at the 2018 business meeting.

With about $10.3 million in projected revenue and slightly more than $12 million in projected expenses, the FY 2020 budget projects a deficit of approximately 17 percent. In addition to the CEO search and other one-time expenses, the budget expenditures are designed to help position PAEA for growth and to boost member services within the parameters of a longer-term plan.

“The Board felt that this planned deficit makes the most sense for the organization at this point in our growth,” said PAEA Treasurer Carl Garrubba, MPA, PA-C, CPA. “This will allow us to complete the launch of two products of great importance to our members: the Digital Learning Hub, which will greatly expand the quantity and quality of targeted faculty development available to PA faculty, and the End of Curriculum exam, which will provide an important tool for our programs in their assessment of students’ readiness for graduation.” The deficit will be made up from PAEA’s reserve fund, which will still be on the upper end of the recommended six to 12 months of operating reserves, noted Garrubba.

Steven Lane

Steven is the senior director of strategic communications for PAEA. He has worked with the PA profession for much of his career and in 2016 he joined the PAEA staff for the third time.