Fall 2018 Gavel Gavel Fall 2018 | Page 5

SBAND EXECUTIVE DIRECTOR IT'S THAT TIME OF YEAR, AGAIN TONY J. WEILER SBAND Executive Director Budget Time. It’s that time of year again (no, I don’t mean fall/winter), when the staff and I at SBAND work on our annual budget. During this time of year, we put together our best estimate of what we anticipate to be our income and expenses for the following year. As with any budget, there is a bit of guesswork with the number of attorneys licensed in North Dakota, but that has remained pretty steady over the last several years. The budget process includes an analysis of our income from any source, expenses, and a look back at the current budget to plan for the operation and management of the association in 2019. While license fees are not our only income stream, the anticipated number of members is important in the budgeting process, as that is a large percentage of our overall revenue. Many members simply pay their annual license fee without regard to where the money goes. Keep in mind, if you pay the full license fee of $380, the first $75 goes to discipline. SBAND receives 80 percent of the balance and the Board of Law Examiners receives 20 percent, leaving SBAND with $244. Further, $16 per license fee goes into the Client Protection Fund. The rest is utilized by SBAND to run the association. Once the budget is finalized by SBAND staff, the executive committee reviews it and makes suggested changes and modifications. It then goes to the full board of governors for review, modifications, and finally acceptance. We continue to be somewhat conservative when it comes to calculating revenue and try to do our best to estimate expenses on the high side so as to remain with a positive balance. We operate a tight ship as well and run the association in a very fiscally conservative manner. As you also know, part of the budget exercise is calculating what we spend on what are considered “non-chargeable” expenses, as those cannot be used for any association activities without allowing members to “opt out” under Keller v. California. We calculate that about 46 percent of our revenue is from member license fees, and the rest comes from other sources such as continuing legal education seminars, the fee to file an annual report to the CLE commission, and other sources of revenue. In your annual license fee statement you will find the “Keller” notice, which uses a historical approach to identify what is germane under Keller. For each activity found to be non-chargeable, SBAND calculates the cost of the activity, including all applicable overhead and administrative costs, and determines the amount of license fees expended on the activity. The optional deduction is calculated using our audited 2017 financials (in line with U.S. Supreme Court caselaw) and anticipating the number of licensed attorneys in 2017. The “Keller” notice in your license fee statement will explain more on how we arrive at each member’s possible deduction. Once again, if you have any questions, please don’t hesitate to contact me. LSND. You will also find a new line in your 2019 License Fee Statement, dealing with Legal Services of North Dakota (LSND). You will be able to add an optional donation to LSND to help the organization continue its work in helping those in our state who can afford legal services the least. Most of LSND’s funding is derived from federal funds, and those are often unpredictable. LSND is critical in serving the state’s indigent community, and without it there could be issues with pro se litigants crowding court dockets and causing even further delays in justice. I am hoping you will take some time to think about the importance of LSND and contribute what you can to this hard-working organization. New at SBAND. If you haven’t had a chance to check out our new and improved website, please do so. We have online tutorials to help you navigate the site and provide a better member experience when utilizing all that is available to you at sband.org. We will continue to make changes to the site to better enhance its value to our members, and look for a larger social media presence by SBAND, including Facebook, Twitter, and an app! FALL 2018 5