SAN FRANCISCO - Citing a need to lower the financial burden on member credit unions in the Golden and Silver States, the California and Nevada CU Leagues will reduce the assessment for their public advocacy programs by 83%.
Approved by league members in 1994, the unique advocacy program was funded by an assessment separate from league dues that was mandatory for league members. In 2007, more than $6-million was budgeted for the effort that aimed to raise awareness of CUs among legislators and the public. But the economic downturn has put the brakes on the campaign.
Bill Cheney, the president of the two leagues, said the proposed plan for 2009 will halt nearly all media advertising and reduce consultant fees, but would maintain grassroots efforts on a reduced level. In addition, the program plans to do selected media buys when events warrant.
"These are severe cuts," Cheney told attendees of the CCUL/NCUL's Annual Meeting and Convention here prior to the vote. "We hope they will help us continue the effectiveness of the program while reducing the financial burden on credit unions. The proposed plan suspends media advertising, but we don't want to suspend the practice altogether because we've made so much progress."
The delegates representing Nevada CUs passed the reduced assessment unanimously by a voice vote. California CUs cast 4,142 ballots, with 4,108 (99%) approving, and 34 voting "no." The new assessment will have four categories based on asset size. It will be $0 for CUs with $5 million or less; $25 for $5 million to $15 million; $50 for $15 million to $38 million; and, for those above $38 million, 0.00000492 times assets plus 0.0492 times members.
The public advocacy assessment continues to be a mandatory payment on top of league dues. Member CUs in the two leagues approved a dues assessment of 0.00031 times assets. If 2008 league dues were less than that figure, CUs will pay the lesser amount. Newly organized credit unions-defined as not in operation one full year as of June 30, 2008-with assets of less than $100,000, will be exempt from dues in 2009.
After the vote, Cheney told Credit Union Journal the need for the reduction was clear given current economic conditions. "I felt and the board agreed given the severe financial hardship it was necessary to suspend portions of the plan for 2009," he said. "We worked out a proposal over the last couple weeks and members supported it overwhelmingly today [Nov. 7]."
The two leagues will continue to support a number of grassroots efforts, Cheney explained, topped by ConnectForTheCause.org, which urges people to contact their lawmakers. In addition, a PR campaign that targets news media with positive CU stories and analysis will continue.
"The only thing that goes away is consumer, non-member advertising," he said. "We have dollars to do targeted advertising if we need it in the capital cities of Sacramento, Carson City and D.C. Something tells me we will need it, but we don't know yet. California's special session started this week, the Senate's special session will start Nov. 17 if Bush says he will support a second stimulus package."
