Budget
Committee Proposes 2008–2009 Budget The D.C. Bar Budget Committee has unanimously approved a proposed budget for the Bar’s fiscal year that begins July 1, 2008. A public hearing on the proposed budget will be held at 1 p.m. on April 8 in the Presidents’ Room of the Bar’s Conference Center, which is located at 1250 H Street NW, B-1 level.
The committee’s proposal would increase annual dues from $188 to $195 for active members, from $118 to $121 for inactive members, and from $95 to $98 for judicial members. The proposed dues increase for active members brings their dues up to the ceiling approved by the D.C. Court of Appeals in 2003.
The proposed budget projects a deficit of $454,819 for dues-funded activities and the mandatory course for new admittees (see chart). The committee proposes to cover this deficit with money from the Bar’s reserve fund. The proposed budget projects a deficit of $531,954 for the Bar’s activities that are supported by nondues revenue. The committee proposes to cover this deficit with nondues money from the Bar’s reserve fund.
The overall deficit is larger than that of previous years. However, this is a conservative budget that draws from reserves as a last contingency. If the Bar is compelled to use its reserves to fund its operations, it is anticipated that it would still have adequate overall reserves at the end the year to meet the recommendation of the Bar’s independent auditors.
The Bar’s Budget Committee undertook a comprehensive review of both revenue and expenditures of the Bar. One area of the budget where expenses have increased is related to occupancy. The Bar’s real estate lease will expire during the 2008–2009 fiscal year. An architectural firm has been retained to prepare a strategic space plan that will identify the real estate needs of the Bar for the next five to 10 years. Some of the expenses related to these needs have been addressed in the proposed budget. Other related costs will be addressed in future years.
The proposed budget includes funds earmarked for two new staff positions. A part-time position has been created to administer a new knowledge management software system the Bar will be using for archiving and records retention purposes. A full-time position was added in the Member Services Department to meet the increasing customer service requirements related to membership growth. Finally, funds have been set aside for an information technology professional to provide support for new databases maintained by the Bar staff at all three of its offices—headquarters, the Board on Professional Responsibility, and the Office of Bar Counsel.
The proposed budget also includes a 4 percent merit pool increase for annual staff raises and a 1.5 percent pool for development and equity adjustments, as recommended by the Bar’s compensation consultants. These amounts reflect current market conditions and the requirement to remain competitive among comparable nonprofit employers.
The proposed budget also reduces the Clients’ Security Fund balance from $750,000 to $700,000. This was decided to reduce expenses in the budget. The fund balance will be brought back to the $750,000 level in two years.
Nondues revenue, generated largely from contributions, sections dues, seminar fees, publication sales, and royalties from membership benefit programs, will continue to provide funding for several Bar programs that cannot be funded from dues revenue, including Sections, Continuing Legal Education, and Pro Bono activities.
After receiving and considering comments at its April 8 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, which is located at 1250 H Street NW, during regular business hours.
