The April 1, 1999 through March 31, 2000 fiscal year was a difficult year for our union. The fight for a fair contract involved not only using our current fiscal resources, but dipping into our reserve fund and requesting financial assistance from our parent unions. The Service Employees International Union (SEIU) and the American Federation of Teachers (AFT) each responded with a $250,000 grant for an advertising blitz. In addition, SEIU provided to us, at no cost, Joseph Buckley, a professional negotiator.
During the contract period, joint contract monies were not received and other grants were either not renewed or severely reduced. In addition to using our resources for a contract fight, we now had to make up the monies from the current budget to support the activities to which our members had become accustomed. These services were Health and Safety training courses, technical assistance in Health and Safety issues, and advocacy for our members in health benefit issues. Reliance on the grants to perform these functions has proven to be detrimental to the organization during the periods in which we must dedicate all our resources to fighting for a contract.
So for the next term, this administration finds itself at a crossroad. Do we continue to function in the same way, providing benefits that should be provided by the State of New York? Do we continue to support a burdensome internal structure, or do we look at new ways to accomplish our goals?
In previous years, Convention Resolutions have dealt with changing our structure. Should the delegate apportionment be changed to one representative per seventy-five members? Should the Convention be held every other year? These resolutions were defeated. The income has been virtually flat-lined. The membership has been flat-lined. Inflationary pressures affect all of our operating expenses. Rents increase, utilities increase. Sometimes, these increases are above the inflationary rate.
We have worked extremely hard to reduce our expenses and we have come to the end of the line. Now, hard choices must be made by this delegate body. A projection of our expenses and dues for the next five years indicates that we will continue to have shortfalls each fiscal year culminating in a $2.7 million deficit by fiscal year 2005-2006. This shortfall occurs just if the status quo is maintained. No new initiatives. No money set aside for contract fights. The delegate body must decide whether a dues increase is warranted to maintain the services and structures we currently have. Or should we cut services, restructure, and reform the way our union conducts its business?
Should we amass money for a contract fight, dedicate money to member mobilization, training, political action? How should we do this? Should we do this through an increase in dues?
As your Secretary/Treasurer, I have an obligation to present you with options. Ours is a democratic union, one in which you have a strong voice. I believe in that voice. I believe you should have all the information you need to make these difficult choices. A small dues increase would not affect most of us. I think of others among us, though, who would hurt, even with a small increase. Can they suffer the pain now for a better future tomorrow? One that we can not make any promises will occur, one that is not guaranteed, but through our collective experiences as officers know, is possible to achieve?
There will be much debate on these issues. I wish you wisdom and patience. I have confidence that you will seriously and judiciously weigh your options and come to a conclusion that is in the best interests of the membership.
N.Y.S. PUBLIC EMPLOYEES FEDERATION
BALANCE SHEET
FOR THE FISCAL YEAR ENDING MARCH 31, 2000
ASSETS
Current Assets
PEF Cash 1,269,961
Legislative Fund Cash 241,888
Accounts Receivable 640,261
Prepaid Expenses 424,618
Total Current Assets 2,576,728
Fixed Assets
Land & Buildings 2,014,312
Furn/Fix/Computers/Autos 1,830,484
Leasehold Improvements 434,473
Less Accumulated Deprec/Amoritz _ (2,030,006)
Total Fixed Assets 2,249,263
Other Assets 177,466
Investment Securities 3,825,354
Total Assets 8,828,811
________________________________________________________________
LIABILITIES & CAPITAL
Current Liabilities
Accounts Payable (3,651,393)
Health Insurance Reserve (315,953)
Total Current Liabilities (3,967,346)
Long Term Liabilities
Contingencies/Litigation (8,963,668)
Capital Lease Obligation (135,345)
Total Long Term Liabilities (9,099,013)
Total Liabilities (13,066,359)
Net Assets
Unrestricted Net Assets 4,363,627
Net Income/Deficit _ (41,011)
Total Unrestricted Net Assets 4,322,616
Temporarily Restricted Net Assets (85,068)
Total Liabilities & Capital (8,828,811)
____________________________________________________________
N.Y.S. PUBLIC EMPLOYEES FEDERATION
INCOME AND EXPENSES
FOR THE FISCAL YEAR ENDING MARCH 31, 2000
INCOME
Membership Dues Income (18,650,583)
Agency Fee Income (1,151,077)
Dues And Fees Refunds 13,810
Total Dues And Fees (19,787,850)
Interest Income (339,459)
Unrealized (Gains)/Losses 184,528
Rental Income (47,220)
Grant Income (213,906)
Advertising Income (175,721)
Other Miscellaneous Income (701,637)
Pac - Net Income (160,701)
Total Income (21,241,965)
Direct Services
Union Leave Expense 875,920
Staff Salary Expense 6,211,000
Payroll Tax Expense 473,036
Employee Benefits Expense 1,627,380
Total Salaries, Taxes, Ben. 9,187,335
Auto Allowances And Expenses 173,481
Staff Travel And Transp. Expenses 256,017
Total Staff Travel 429, 498
Program Related Expenses
Member Travel Expenses 1,490,490
State Eol Expense 209,358
Total Program Related 1,699,848
Total Direct Service 11,316,680
OPERATING EXPENSES
Reproduction Expense 177,445
Printing Expense 392,697
Postage Expense 395,896
Office Supplies Expense 90,415
Telephone/Communication 333,013
Rent Expense 538,854
Utility Expense 108,389
Janitorial & Security Expense 63,318
Maintenance & Repairs 48,786
Equipment Rental 5,748
Minor Equipment Purchases 67,322
Computer Fees 65,277
Advertising Expense 676,219
Photographic Supplies 15,892
Periodicals & Membership Fees 35,603
Books & Reference Materials 55,626
Insurance Expense 103,626
Temporary Hires 46,465
Steno/Transcript & Court Fees 19,031
Miscellaneous & Sundry 87,364
Total Operating Expenses 3,326,988
General Administrative & Organizational Expenses
Scholarship Fund Expense 40,000
Arbitration Expense 133,103
Legislative Fund Expense 200,000
Chairitable Contributions 31,993
Affiliation Fees 203,535
Divisional Fund 765,045
Per Capita Fees 5,301,853
Outside Legal Fees 17,107
Professional Fees & Consulting 247,030
Extraordinary Items (810,186)
Depreciation/Amortization 427, 805
Total Gen. Adm. & Org. Exp. 6,557,286
Total Expenses 21,200,954
Net Income (41,011)
________________________________________________________