Secretary-Treasurer's Department

As the new year approaches, local officers are preparing annual budgets and discussing strategies for the upcoming years. How do we build and maintain a strong local? How can we best mobilize APWU members in the legislative arena to protect postal jobs and push for passage of the Employee Free Choice Act and health-insurance reform? How will the local fight for other causes that are important to working men and women?

Where is the local going? Where do you want it to go? What is your vision for the future?

As local leaders sort out the answers to these questions, they must determine how best to allocate available resources. Besides assembling a team of dedicated union activists, the most important issue is, “Where will we find the funds we need to achieve our goals.” A local budget is the best tool for getting an answer to that question. But be sure that you control the budget; don’t let the budget control you.

Making a budget is more than just estimating what you will spend based on how much money you expect to take in during the next year. The budget is essential in determining what goals the local can realistically set.

The local executive board should establish the local’s direction or vision before setting the budget. Once you do that, you set goals to make your vision a reality. For example, if you want the local union to be a force for change in the workplace and the community, you will need to set achievable, measurable goals.

One goal could be to more effectively communicate with the membership; you simply can’t have a powerful union if you are not communicating effectively with your members. You may want to have a brainstorming session to come up with ways to better communicate with your members — phone calls, e-mail chains, bulletin boards, newsletters. Discuss what works and you will be able to measure your progress and know when you have been successful.

You also will have to consider the financial resources you will need to accomplish any and all local goals.

Income Assessment

The first step in preparing a local-union budget is an assessment of expected income. Nationally, the APWU has lost one-third of its members in the last decade, and membership rolls are expected to continue decline as the Postal Service cuts works hours. Many members have left or soon will be leaving our ranks to take advantage of the incentive offer for retirement and separations.

The drop from the high point of approximately 300,000 members in 1998 represents a direct loss of income to the organization at all levels. In a local where dues collections are $18.82 per pay period per member, for example, $10 goes to the local. For every 10-member decline in membership, the local loses $2,600 annually in income. For larger locals, a 100-member decline means a loss of $26,000 in yearly income.

With little or no hiring expected any time soon, the major sources of increased income are through dues increases, recruitment of non-members, mergers, and private- sector organizing. If none of these choices are an option for your local, or if there is little likelihood of success, the local must reduce its spending. This can be achieved only by cutting the cost of operations.

Constitutionally Required Spending

Your local constitution dictates officer structure, salaries and benefits, and may outline the hours of Leave Without Pay that will be compensated; training that must be provided; mileage reimbursements, and other expenses. These are costs you cannot avoid without amending the constitution. Since there is no guarantee that your constitution can be amended, all of these costs should be factored into your upcoming budget.

Although the constitution might dictate the number of delegates that will be sent to state and national conventions, the hotel, airfare, and mileage can only be estimated. It is recommended that locals establish a convention fund to spread the cost of conventions over the budget year. It may be necessary to adjust the number of convention delegates to reflect a change in membership numbers.

Please note: Although the constitution will spell out your election procedures, there is no legal or constitutional requirement for an elaborate ceremony to accompany the installation of officers: The election determines who the officers will be, not the ceremonies surrounding the oath of office.

Expense Reimbursement and Training

Many locals pay mileage based on what the IRS determines is deductible mileage or the amount that is not subject to taxation. But the local determines just what mileage is to be reimbursed. You may want to examine your mileage costs to assess whether mileage should be reimbursed, especially if the costs are high.

Regional and national training can be a significant expense for a local; Web-based training (Web seminars, or “Webinars”) can be a big help in controlling such costs. The APWU Secretary-Treasurer and Retirees departments have been offering such training, with other union departments expected to follow suit in the future. Web-based training can be virtually identical to on-site training: It requires only that the local have convenient access to a high-speed Internet connection and a speakerphone.

Representation

Representation is one of the core functions of a local union. Almost all other activities of the union support this activity, and it should be the last aspect of local funding we consider cutting. Local officers can examine how to do their work more efficiently (at lower cost), but should never consider reducing membership-representation as a way to compensate for a loss of local income.

It is recommended that locals establish an emergency or contingency fund with a target equal to as much as six months’ worth of spending. Many locals include in their budget a regular deposit into a contingency fund: They treat it like a regular monthly expense, just like a utility bill.

It is a simple truth: Local unions are unlikely to be able to support the structure and programs of the past. The decline in membership requires that tough decisions be made. Planning for the future will make those decisions, hard though they may be, the right decisions for your local.

These are just some of the areas to be considered when formulating a local-union budget. See the Calendar of Events pages at www.apwu.org for a schedule of upcoming Secretary-Treasurer Webinars, such as “Fiduciary Responsibilities, Part 2,” for more specific help in establishing your budget.

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