Vol. 76, No. 10, October
2003
Fiscal Responsibility
The sound management of its finances helps the
State Bar meet its core responsibilities and achieve success.
by George Burnett
Last month this column discussed our association's
accomplishments and recounted the high esteem the State Bar of Wisconsin
enjoys nationally. Success, however, must be measured not only by what
this association has achieved, but by the resources invested to produce
it. We need to review on occasion the important financial facts about
our organization.
State Bar Dues Have Been Stable Over the Last
Decade. Dues have remained constant ($210 per member) since
2000 and are $60 higher today than they were 12 years ago.
State Bar Dues Are Below Dues of Many Other Bar
Associations. Last year, average dues paid in seven surrounding
midwestern states were $222. Illinois ($242), Michigan ($260), Nebraska
($250), and Ohio ($245) charged higher dues than Wisconsin; Indiana
($210), Iowa ($150), and Minnesota ($203) charged equal or lower dues.
Of the 33 mandatory bar associations nationwide, 19 assessed higher
dues.
State Bar Dues Are Below Dues Charged by Many Other
Professional Organizations. Last year, State Bar dues were
below dues charged by the state professional associations for doctors
($680), dentists ($550), and nurses ($263), and virtually identical to
dues charged for pharmacists and realtors. Our dues exceeded those
charged to architects ($140), public accountants ($180), and
veterinarians ($160).
The State Bar Operated in the Black in Fiscal 2003.
Ultimately, our financial security depends on revenues generated and
expenditures incurred. In the fiscal year ending June 30, 2003, the
State Bar generated $8.7 million in total revenues and incurred total
expenditures of $8.5 million. Expenses were approximately $750,000
below budget.
Cost Savings Were Due to Organizational Austerity and
Initiative. Reduced expenditures were attributable to
significant savings in salaries and in marketing and meeting expenses
and to innovations implemented by Executive Director George Brown and
staff that saved approximately $100,000 in printing expenses. Personnel
savings were due to the consolidation of jobs and the fact that some
departing employees were not immediately replaced. Savings in meeting
costs, travel, and other costs in seminars reflect commendable austerity
and innovation, but further reductions in these items are not likely.
Savings in marketing expenses in the CLE Department reflected a downturn
in the number of new books products and a more judicious use of email
marketing. Yet, new products and innovations in seminar delivery and
more aggressive marketing in the books division will likely increase
future marketing expenditures.
Trends Show State Bar Expenditures Have Held Stable Over the
Last Several Years. From 2000 to 2002, gross expenses actually
fell from $9.1 million to $7.9 million. This occurred while the
membership census rose by approximately 3 percent. Gross expenses in
2002 were only slightly higher than gross expenses in 1997. Gross
expenses in 2003 ($8.5 million) were slightly higher than expenditures
in 1998.
The Trending Decrease in Gross Revenues Reversed Last
Year. Just as expenditures declined, so did revenues, from $9.0
million in 2000 to $8.1 million in 2002. Until last year, membership
dues were becoming an increasingly larger percentage of Bar total
revenues. Over the last several years, measures taken by Bar leadership
reversed the trend in fiscal 2003 and produced an upturn in CLE seminar
and book revenues.
These are some facts about our financial condition. From these facts,
three conclusions can be drawn. First, few organizations can say that
expenditures today are the same as expenditures four years ago; that is,
the State Bar delivers the same service for the same amount of money.
Second, State Bar dues compare favorably to those of like associations.
Lastly, we will continue to present quality CLE programming and books to
our members, for it is a key part of our mission and critical to our
financial future.
Wisconsin
Lawyer