Budget
Committee Proposes 2009–2010 Budget The District of Columbia Bar Budget Committee has unanimously approved a proposed budget for the Bar’s fiscal year that begins July 1, 2009. A public hearing to answer member questions on the proposed budget will be held at 12:30 p.m. on April 14 in the Bar’s Conference Center, 1250 H Street NW, B-1 level.
The committee’s proposal would increase annual dues from $195 to $224 for active members, from $121 to $126 for inactive members, and from $98 to $113 for judicial members. These proposed dues increases are at or below the dues levels projected in the Bar’s 2008 dues ceiling recommendation as approved by the D.C. Court of Appeals.
The proposed budget projects a small surplus in the amount of $1,134 for dues-funded activities and the mandatory course for new admittees (see chart). A deficit of $295,229 is expected for many activities of the Bar that are supported by nondues revenue. The committee proposes to cover this deficit with nondues money from the Bar’s reserve fund.
“The Bar’s Budget Committee undertook a comprehensive review of both revenue and expenditures proposed for the coming fiscal year. At the request of the committee, staff further prioritized expenditures to identify expense reductions necessary to achieve a balanced budget. The committee is confident that although this budget is fiscally tight, it will adequately support the important activities of our Bar,” said D.C. Bar President-Elect Kim M. Keenan, who chairs the Budget Committee.
Due to the expiration of the Bar’s 16-year lease at its present location, dues-funded occupancy costs are estimated to increase significantly. After an extensive search by Studley, the Bar’s real estate services firm, an analysis of needs and a series of “test fits” by SKB Architects, and financial analysis by Studley and Bar staff, it became evident the best overall and least costly option was for the Bar to relocate. Even so, the rise in occupancy costs in 15-plus years since the last lease accounts for a large portion of the expense increases in this budget.
The proposed budget includes three new staff positions: a member services specialist to assist members with inquiries that are received by way of e-mail, fax, and telephone; an investigator to manage more effectively the Bar’s disciplinary caseload, which is expected to include more consent dispositions; and an information technology help desk technician to keep security patches current, allow more time for staff to cross-train, and improve productivity by answering technology-related questions and providing specific remedies.
The proposed budget includes a tentative 3 percent increase for annual staff salary adjustments that will be reevaluated in October. This projected increase reflects current market conditions among comparable membership organizations.
The proposed budget also allocates $151,800 to the Clients’ Security Fund (CSF) to restore the fund balance to $700,000. The CSF acts as a “last resort” source to reimburse losses of persons victimized by attorney defalcation or misconduct. The fund total was reduced to $700,000 for a period of two years, ending with fiscal year 2009–2010. The fund will be increased to $750,000, beginning in fiscal year 2010–2011.
Nondues revenue, generated largely from contributions, section dues, seminars, publication sales, advertising sales, and royalties from membership benefit programs, will continue to provide funding for several Bar programs that cannot be funded from dues revenue, including section, continuing legal education, and pro bono activities.
After receiving and considering public comments at its April 14 hearing, the Budget Committee will recommend a final proposed budget to the Board of Governors for its approval. Copies of the committee’s full report are available for review at the Bar’s headquarters, located at 1250 H Street NW, during regular business hours.
