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Posts Tagged ‘Form 990’

Like the bed-destroying dog that expects praise or the guy that lights the house on fire and later claims credit for putting it out, yesterday the State Bar of Arizona blast emailed supposed “good news about member fees.” The Bar’s final $15 dues increase slated for implementation January 1, 2019 “has been put on hold.”

Already one of the highest cost to practice states in the U.S. at either No. 3 or 4 on the high-priced hit parade, the Bar’s email message from its new president seemed to expect members to praise or credit it for this latest dues suspension.

Let’s instead give the new president a dozen chutzpah cupcakes to pass around at next month’s board meeting.

This is the second postponement authorized by the state supreme court. The last $15 was originally scheduled for roll out January 1 of this year.

But to be clear, the increase hasn’t been terminated. It’s only “on hold” — again.

That nuance, however, needn’t get in the way of the Bar audaciously reframing the latest postponement. It’s the result of the Bar having “done a great job managing its budget and resources,” says the new president.

In actuality, it’s business as usual at the Bar. Every year the budget swells thanks to unbridled bureaucratic growth; generous executive pay raises; mission creep; new hires; and the new Public Service Center’s consumer-lawyer internet matching service. Talk about spin.

By way of history, in December 2013 the Bar first proposed a $100 total dues increase, $25 per year phased in over four years. The board tried to slip through this hefty, unwarranted dues hike 12 days before Christmas when they likely believed members weren’t paying attention.

But members did catch wind of the Bar’s unwelcome early yuletide gift. Following member uproar, the board backed off a vote on the proposal and rescheduled it for February 2014. The board also scaled back the $100 increase in favor of a $60 increase, $15 per year over four years. The board’s amended proposal, however, also tried to shamelessly embed an automatic CPI escalator. Leave it to lawyers to step on the tail of due process. Fortunately, the cost-of-living escalator was denied by the court although the $60 increase alas won approval.

Then as now, the Bar claimed to be cutting expenses and operating with efficiency. The president at the time even declared the Bar had “streamlined to the point that we spend less today per member than we did in 2005 when the last dues increase occurred.”

These days, at least per its latest Form 990 IRS-mandated public return, the Bar remains as bloated as ever. There are 133 employees¹ on the payroll not including an undisclosed number of independent contractors and consultants.

And while it brags about “the great resources the Bar offers its members,” in point of fact most members don’t care, want or bother with these self-styled “great resources.”

Indeed, what the Bar fears most is a time when it is finally forced to give their compulsory members a choice whether or not to voluntarily fund these “great resources.” When that happens, no amount of spin or cherry-picking chutzpah will repurpose that reality.

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¹After this post was published, I received an email from the Arizona Bar’s Chief Communications Officer with the following: “Just for the record, the State Bar currently has 102 employees. The 133 number on the form 990 basically refers to anyone who received a W2. Because of employee turnover the numbers will always be greater than the number of employees.”

Credits: “O Mingus,” by Jenn at Flickr Creative Commons Attribution-NonCommercial-ShareAlike; “Dog Cupcakes,” by Jenny Kaczorowski at Flickr Creative Commons Attribution-NonCommercial-ShareAlike.

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