SUBJECT:

MEC Budgets (Section IV.G.2)

STATEMENT OF QUESTION:

Should MEC Budgets be reduced by 9% of the amount calculated by the MEC Budget formula for fiscal year 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.G.2.a be amended to include the following parenthetical sentence at the end of the paragraph:

a. Master Executive Council budgets are based on a percentage of each carrier's adjusted dues. A formula is used to determine the exact percentage for the individual carrier. Should any carrier experience growth, the International Secretary-Treasurer will recalculate their MEC budget based on actual growth in order to provide the appropriate increased funding. The timing of such review will be twice annually, at 4 and 8 months into the budget year. At no time will the current MEC budget be reduced during the calendar year. (For fiscal year 2009-2010, MEC Budgets will be reduced by 9% of the amount generated by the MEC Budget formula.)