Dues Increase Q&A
Why are dues increasing?
The State Bar Board of Governors, acting on a recommendation from the
Finance Committee, recently approved a $35 increase in the annual State
Bar dues. Effective July 1, 1999, most members will pay $210 annually,
while new members will pay $105. This column answers some frequently
asked questions about State Bar dues and the pending increase.
Three dues increases have occurred over the past 16 years. Dues were
increased $15 in July 1986 and July 1988. During the 1990s, there has
been one $25 dues increase, which took effect in July 1996.
In 1995, based on long-range financial projections, the Finance
Committee recommended a $25 dues increase effective July 1, 1999.
However, the Board of Governors in 1995 voted against the increase.
Several board members commented the Bar should wait until 1999 to
evaluate whether a dues increase would be needed in 1999.
Why can't the Bar cut programs and other expenses?
Budget cuts are an inevitable part of any good budget process. Each
year the Finance Committee closely scrutinizes the Bar budget, and there
are many programs that have suffered from the budget knife. Recently,
the Finance Committee has cut up to $750,000 each year from budget
requests presented to it. In addition, the Program Committee annually
evaluates one-third of the Bar's programming to identify programs for
possible phase-out. The budget reflects the Bar's efforts to keep pace
with member demands and expectations as revealed by survey research and
other member input.
Despite these two levels of budget analysis, the Bar still faced a
deficit of approximately $500,000 in fiscal year 2000. Making up that
kind of deficit could not be accomplished through across-the-board cuts.
Why? Percentage decreases across the board would not yield the needed
savings, because a cut in many programs would result in a corresponding
reduction in revenue associated with those programs. In addition, many
expenses are fixed, at least for the short run, like utilities and
similar administrative expenses.
Why must the burden of increasing revenue fall on dues?
A dues increase will help maintain the current level of programming,
and will help the Bar keep up with rising costs and mature or declining
nondues revenue sources. The State Bar has been successful in generating
nondues sources of revenue, such as CLE books and CLE seminars, and has
partnered with LOIS to deliver lower-cost legal research
alternatives.
As technology advances at an unprecedented rate, traditional nondues
revenue sources become less viable, and the Bar needs to pursue new ways
to deliver products and services and generate new revenue sources. Other
bar associations have grappled with the same issues, but new revenue
sources have yet to be developed. Currently, nondues revenue represents
approximately 70 percent of the State Bar's funding. Unlike dues,
nondues revenue is subject to marketplace volatility. The Bar has and
must continue to proactively address this volatility in order to keep
nondues revenue as stable as possible.
Couldn't the Bar have held off on a dues increase?
The Finance Committee was not comfortable with delaying an increase,
although it was thoroughly explored. Holding off on a dues increase this
year means approving a deficit budget. The committee was unwilling to
recommend the erosion of the Bar's modest reserves, which is a measure
of the Bar's financial health.
Is the dues increase directly related to the new Bar Center?
A portion of the dues increase does relate to the new Bar Center.
Approximately $10 of the increase will help pay for the cost of
operating and financing the building; $25 of the increase, as projected
by the Finance Committee in 1995, is due to the rising cost of
programming and expenses.
The cost to own and operate the new building will be greater than the
current facility. But, with generous donations to the fundraising
campaign, a better-than-expected offer for the current building, and a
favorable financing package from our lender for the new facility the Bar
is able to reduce the burden on dues to approximately $10.
How do State Bar dues compare to other professional
associations?
The following is a list of dues charged by other Wisconsin
professional membership associations garnered during recent telephone
inquiries. It represents full-service annual memberships:
- State Medical Society of Wisconsin - $680
- Wisconsin Dental Association - $660
- Wisconsin Physical Therapy Association - $369
- Wisconsin Academy of Family Physicians - $225
- Wisconsin Education Association Council - $220
- State Bar of Wisconsin - $210
- Wisconsin Nurses Association - $200
- Wisconsin Institute of CPAs - $180
- National Association of Social Workers, (WI chapter) - $160
- Wisconsin Realtors® Association - $151
Wisconsin Lawyer