SUBJECT:

LEC Budgets (Section IV.C.1)

STATEMENT OF QUESTION:

Should LEC Budgets be reduced from 19.5% to 18.5% for fiscal 2009-2010?

SOURCE AND DATE SUBMITTED: AFA-CWA Finance Committee, January 23, 2009

BACKGROUND INFORMATION:

In order to balance the AFA-CWA Proposed 2009-2010 Annual Budget, many budgets were reduced. The philosophy used was to ensure many budgets suffered some reduction so that no one specific budget would be critically affected.

PROPOSED RESOLUTION:

THEREFORE BE IT RESOLVED that Section IV.C.1 be amended to include the following parenthetical sentence at the end of the paragraph:

1. Each Local Council will be allowed a regular monthly allowance based on 18.75% of the total monthly dues including service charge monies of the Council affected. However, in no event shall such monthly allowance be less than an amount equal to 18.75% of a total of 100 members and service charge payers' dues. Effective January 1, 2009, the 18.75% will be increased to 19.5%. Twenty percent (20%) of any funds remaining at the end of the fiscal year are to be carried over into the succeeding year's local budget. All remaining funds are to be returned to the Airline Master Executive Council Administration fund. (For fiscal year 2009-2010, LEC Budgets will be based upon 18.5% of total monthly dues including service charge monies.)

Agenda Item #1A