From what I understand, the funding for IEP's comes from the state and not the individual schools. I would think that that type of funding would be top priority and many other things would be cut before any special education budget.
I would have the laws for special education and IEP's in hand when it comes time to do your son's IEP. Once the school district knew that I was educated about my son's rights, we had no problems! Sometimes you just have to be a bully about it to get things done. I'm normally a very shy person - but it worked for us.