Wisconsin Lawyer: Wisconsin Lawyer March 1999: Dues Increase Q&A:

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March 01, 1999

Wisconsin Lawyer March 1999: 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: