by Charles S.P. Hodge
(Editor’s Note: The ACB board of directors has convened three separate conference calls to discuss the complex issues surrounding the organization’s 2003 budget. Summaries of the first two calls are provided below. A third call has been scheduled for Tuesday, February 11, just a few days before we plan to go to press with the March “Braille Forum.” A summary of the third call will appear in the April issue, along with a summary of the mid-year board meeting.)
January 16, 2003
A telephone conference call meeting of the ACB board of directors to consider 2003 ACB budget matters was called to order on Thursday evening, January 16, 2003, at 8 p.m. (Eastern time) by first vice president Steve Speicher. At the outset, the board was informed of the accident that had befallen ACB President Chris Gray on the previous evening where Gray had badly fractured a thigh bone when he fell between two cars of a Muni train in San Francisco. President Gray underwent emergency reconstructive surgery on his broken leg on January 16, and will be confronting a lengthy period of physical therapy and recuperation from his injuries. The secretary’s roll call found all members present except for Gray and board members Alan Beatty and Ed Bradley. In addition, ACB executive director Charlie Crawford and chief financial officer Jim Olsen were also in attendance as staff members.
In his capacity as presiding officer, Steve Speicher indicated his planned approach for this meeting. He stated his intention to allow Brian Charlson reporting on behalf of the budget committee to outline the process which that committee had used to develop the draft budget document, and to describe the various assumptions used by the budget committee in arriving at its various recommendations to the board. The idea was to familiarize the board with the draft budget document and what is contained within it, and to answer relevant questions from board members. In the unexpected absence of President Gray, the presiding officer indicated his intention to defer making firm decisions on budgetary matters except for those decisions which had to be decided during this meeting because of pressing time constraints.
With these understandings in mind, Speicher called on Brian Charlson to begin his report on behalf of the budget committee. Charlson began by describing the process which the budget committee had used to develop recommendations. Charlson said that two last-minute matters had come to the attention of the budget committee very recently, and therefore had not been taken into consideration or accounted for in the draft budget document. The first circumstance resulted from a meeting held just the evening before by the board of directors of the American Council of the Blind Enterprises and Services (ACBES) at which the decision had been made that ACBES would be unable to meet its previously given commitment for financial support of ACB for the 2003 budget year, and that ACBES was consequently revising downward its recommended budgetary support level for ACB from $600,000 to $500,000. Charlson then asked Oral Miller to report to the board regarding this last-minute $100,000 reduction in ACBES’ financial support. Miller reported upon the factors which led the ACBES board to make this very difficult and regrettable decision. Miller indicated that the ACBES board intended to review this matter further in July, and if additional funds were available at that time, ACBES intended to increase its financial support to ACB beyond the present $500,000 level of commitment. Charlson then indicated that this last-minute information would clearly complicate the ACB budget committee’s endeavors.
The second late-breaking matter which had come to the budget committee’s attention only within the past few days were new recommendations from the ACB history committee involving further financial obligations to Jim and Marjorie Megivern regarding completion of the ACB history project. Charlson called upon Charlie Hodge to report to the board regarding the history committee’s recommendations. Hodge informed the board that the history committee during its last telephone conference call meeting on Sunday, January 12, had voted in favor of recommending to the budget committee and the ACB board additional payments to Jim and Marjorie Megivern totaling $9,000. This recommendation is composed of two separate and distinct components; the first, a final payment in the amount of $3,000 to close out and finally resolve all claims under the initial contract between ACB and the Megiverns, and the second, a payment in the amount of $6,000 to compensate the Megiverns for their continuing work above and beyond their obligations under their initial contract with ACB to work on, refine and present the final manuscript for the ACB history to our new publisher. Charlson indicated that the budget committee would take the history committee’s latest recommendations under advisement.
Charlson then began the arduous task of going through the notes at the front of the draft budget document one by one. The first item of contention was the recommendation that members of the ACB board of publications (BOP) not receive reimbursement from ACB for transportation, hotel room or meal expenses incurred to attend a BOP meeting scheduled during the mid-year meeting weekend in Pittsburgh, Pa. Despite an impassioned plea from ex-officio member Hodge, the board voted by voice vote to approve this budget committee recommendation. After this vote, Hodge informed the board that even in light of that decision, the BOP membership had voted to hold a face-to-face meeting in Pittsburgh. Hodge pointed to such selfless dedication on the part of BOP members as being worthy of note and appreciation by all ACB members.
Several board members raised concerns regarding recommendations for possible salary increases or additional work hours for both employees and contractors reflected in the budget committee’s recommendations, especially in light of the reduced revenue coming from ACBES. The board, however, did not take any formal action on these matters at this time.
The next matter under discussion was the budget committee’s recommendation permitting the ACB executive director broad discretion in deciding which staff employees would be eligible for travel expense reimbursements to attend the mid-year ACB meetings to be held in Pittsburgh in mid-February. Crawford clarified that it was his intention that only he, Penny Reeder and Terry Pacheco attend the mid-year meetings since Melanie Brunson had been present at the board’s September 2002 meeting in Minneapolis.
The next major issue with which the board came to grips involved the budget committee’s recommendation that ACB continue to offer reimbursement for one hotel room for two nights and up to two banquet tickets per affiliate for the ACB legislative seminar to be held in Washington, D.C., in late March 2003. The reimbursement allocation would amount to $14,000. In light of the news mentioned earlier from the ACBES board, several board members expressed misgivings about the size of the subsidy obligation embodied in this recommendation. Yet, other board members said that affiliates should have been informed well in advance of what they could or could not expect in terms of subsidies or reimbursements from ACB in order to make educated plans regarding their attendance at the legislative seminar. It was also argued that if ACB were to reduce its subsidy level for the legislative seminar, fewer affiliates would send representatives to the seminar which in turn might well lead to additional hotel expenses which ACB could be obliged to pay. The board then voted nine to two with one abstention in a roll call vote to adopt a motion approving the budget committee’s recommendation regarding reimbursement to affiliates who send members to the legislative seminar. Those voting in the affirmative were Jerry Annunzio, Ardis Bazyn, Brian Charlson, Dawn Christensen, Paul Edwards, Mitch Pomerantz, Donna Seliger, Pat Sheehan and M.J. Schmitt. Those voting in the negative were Oral Miller and Carla Ruschival. Billie Jean Keith abstained, and as presiding officer, Steve Speicher did not vote on this motion.
The board then turned to the recommendation that ACB board members receive transportation reimbursement, but only hotel room and meal expense reimbursement for one night and day respectively for their attendance at the mid-year ACB board meeting to be held in Pittsburgh in mid-February. After some discussion, the board voted to approve the committee’s recommendation. The board next focused its attention on a recommendation involving the possible elimination of a staff position in the national office. On motion duly made and seconded, the board voted to go into executive session to discuss this sensitive personnel matter. At this juncture, Olsen left the meeting, but Steve Speicher with the concurrence of the board requested that Crawford remain for the executive session.
When the board returned to open session from executive session, Speicher reported for the record that during the executive session, the board had adopted a motion referring this matter back to the budget committee and requested that committee to consult further with Crawford during the next two weeks with an eye to bringing back to the board more consistent recommendations with respect to the recommendation regarding eliminating an ACB staff position, as well as several of the other earlier discussed budget committee recommendations. The board then adopted a motion instructing the budget committee to add a separate budget note to its report containing its recommendation regarding the 50 percent allocation of any potential performance bonus to be paid to the chief financial officer in 2003 which might be charged against ACB’s budget revenues.
Finally, the board deliberated upon the date and time for its next meeting. Steve Speicher expressed the fervent hope that Gray would be able to recuperate sufficiently to be in attendance at and preside over the board’s next meeting. After some considerable discussion, the board tentatively set its next meeting to be by telephone conference call on Friday evening, January 31, at 8 p.m. (Eastern time). On motion duly made, seconded and approved by voice vote, the board meeting adjourned about 10:30 p.m. (Eastern time).
February 2, 2003
A telephone conference call meeting of the ACB board of directors was called to order by President Chris Gray at 8 p.m. (Eastern time) on Sunday evening, February 2. Gray thanked board members for their many messages of concern and caring which he had received since his accident, and he thanked first vice president Steve Speicher for presiding under very difficult and unexpected circumstances in his absence and carrying on with ACB’s essential business during the board’s telephone conference call meeting of January 16.
Secretary Donna Seliger then called the roll, and all board members were present. In addition, executive director Charlie Crawford and chief financial officer Jim Olsen were also present as staff members.
Since President Gray had been absent during the board’s last conference call meeting, he thought it necessary to once again review one by one the budget committee’s both initial and revised assumptions and recommendations contained in that committee’s initial and revised budget notes even though this process would entail reviewing territory which the board had already considered. The board then began that process, and President Gray and budget committee chairman Charlson noted that many of the budget committee’s initial recommendations had been consolidated and/or folded into some of the committee’s revised later budget notes. For example, the budget committee had in the interim between the January 16 board meeting and this meeting revisited its earlier recommendations concerning renewing the contracts of ACB Radio manager Jonathan Mosen and ACB web master Earlene Hughes, and the committee’s revised recommendations were now contained in one of the revised, new budget notes.
Then, the board adopted by voice vote a motion to approve the budget committee’s recommendation authorizing $1,000 to cover travel expenses of the ACB convention coordinator to visit locations other than already approved convention sites.
Gray announced that he had persuaded board member Jerry Annunzio to accept an appointment to chair the resource development committee. The board also adopted by voice vote a motion authorizing up to $1,000 for the chairman of the resource development committee to incur expenses in attempting to develop new sources of revenues for ACB.
The board then adopted a motion by voice vote authorizing transportation, hotel room and meal reimbursements for the executive director, the “Braille Forum” editor and the coordinator of membership and affiliate services to attend the midyear meetings at Pittsburgh in mid-February 2003. The board also adopted a motion by voice vote approving the budget committee’s recommendation in favor of authorizing the expenditure of $6,000 in professional fees to Dodge Fielding for organizing and putting on certain events designed to further ACB’s fund-raising efforts.
Then the board initially agreed to the budget committee’s recommendation to withdraw its earlier recommendation of a $9,000 budget item for ACB loans and grants to affiliates. However, the board was concerned that its action would have the effect of completely zeroing out ACB’s efforts to support worthwhile novel or creative activities of ACB affiliates. Therefore, the board adopted a motion to reconsider its earlier approval of the withdrawal of this budget item. Finally, the board adopted by voice vote an amended motion authorizing up to $5,000 for such loans and/or grants to affiliates which met the criteria contained in the guidelines previously adopted by the ACB board of directors.
Then the board turned its attention to an item which it had approved at its January 16 meeting regarding payment of expenses for ACB representatives to attend state affiliate conventions. After much discussion highlighting numerous reservations and concerns regarding this matter, the board voted to refer the subject matter of this budget note to a special ad hoc committee to be appointed by the president to develop policy recommendations on these issues for board consideration and eventual adoption or approval. This committee, consisting of board members and representatives from state affiliates, should be appointed almost immediately with an eye toward holding meetings during the upcoming midyear meetings in Pittsburgh. President Gray indicated that this committee would hopefully be in a position to submit its recommendations to the board shortly after the midyear meetings in Pittsburgh, and that he would then intend to have the board vote on such an ad hoc committee report by the end of February.
Next, the board turned to another item which had been approved and presumably settled at its January 16 meeting, i.e., the level and amount of ACB subsidy or reimbursements for affiliates to send representatives to the legislative seminar. Jerry Annunzio moved that the board’s prior action on this matter be reconsidered. After considerable discussion, this motion to reconsider was approved on a roll call vote of nine in favor and six opposed. Those voting in the affirmative were: Jerry Annunzio, Alan Beatty, Ed Bradley, Billie Jean Keith, Oral Miller, Carla Ruschival, M.J. Schmitt, Donna Seliger and Steve Speicher. Those voting in the negative were: Ardis Bazyn, Brian Charlson, Dawn Christensen, Paul Edwards, Mitch Pomerantz and Pat Sheehan. Oral Miller then moved that ACB provide a flat $100 subsidy per affiliate to help defray expenses of each affiliate sending representatives to the ACB legislative seminar. While this motion was duly seconded, Mitch Pomerantz moved to amend the Miller motion to provide each affiliate sending delegates to the legislative seminar with an ACB subsidy of $300, and this proposed amendment was also duly seconded. Pomerantz was then asked by Steve Speicher if he would deem as friendly an amendment to the effect that the $300 subsidy per affiliate was intended to carry out the message previously sent to affiliates of covering two nights lodging for one hotel room per affiliate for the legislative seminar, and Pomerantz and his seconder agreed to this friendly amendment. On a roll call vote of eight in favor to seven opposed, the board voted to approve the Miller motion as amended by the Pomerantz amendment as further amended by the accepted friendly amendment. Those voting in the affirmative were: Ardis Bazyn, Ed Bradley, Brian Charlson, Dawn Christensen, Paul Edwards, Mitch Pomerantz, Carla Ruschival and M.J. Schmitt. Those voting in the negative were: Jerry Annunzio, Alan Beatty, Billie Jean Keith, Oral Miller, Donna Seliger, Pat Sheehan and Steve Speicher. In order to avoid any confusion, Paul Edwards moved and the board approved by a voice vote the motion that ACB would reimburse each affiliate sending representatives to the 2003 legislative seminar for two nights lodging for one hotel room per affiliate. The main motion containing all approved amendments was then adopted by the board by a voice vote.
Next, as a cost-saving measure, the board adopted a motion cancelling the banquet ordinarily held in conjunction with the legislative seminar. Some board members indicated that since the legislative seminar banquet would not be held this year, the normal registration fee for the legislative seminar should be reduced to reflect the lessened cost to ACB for running the seminar. After some discussion on this point, the board adopted a motion authorizing the ACB executive director to establish a registration fee which would cover all incidental costs to ACB for putting on the legislative seminar beyond the hotel lodging subsidies for affiliates approved earlier.
President Gray then briefly described a revenue-sharing business proposal from California Canes which had recently been submitted to ACB. California Canes proposes developing a line of both straight and folding canes which will glow in the dark and will have the newly adopted ACB logo emblazoned on each cane. ACB and California Canes would then enter into an exclusive marketing and promotional agreement to market the glowing ACB-logo line of canes and to split the profits on the sales derived from this exclusive marketing campaign. On motion duly made and seconded, the ACB board voted to authorize the president to pursue this proposal and to sign such an agreement. Gray indicated that the newly developed line of ACB-logo, California Canes could well be marketed and sold through the online ACB store.
After considerable discussion, the board agreed by consensus to hold another telephone conference call meeting in order to complete the task of going completely through the budget committee’s recommendations prior to the board’s regularly scheduled midyear meeting in Pittsburgh. The February 2 telephone conference call meeting of the ACB board of directors adjourned at 10:15 p.m. (Eastern time).