[Lnc-business] Upcoming budget increase requests

[Caryn Ann Harlos]

Ken it is not just about money and Joshua and I have a committee proposal
that is dependent on this.  A short campaign update would be in order.

-Caryn Ann Harlos

On Monday, September 5, 2016, Ken Moellman <ken.moellman at lpky.org> wrote:

>
> I support a meeting on adjusting the budget, as this is an item that
> is fluxuating and has immediacy.
>
> I would still prefer holding the transparency discussion in person in
> November.  Are there committees spending money before November? (I honestly
> don't know the answer to that question.)
>
> I have to get this LPKY drive finished up. We're almost there. So close to
> 50+DC.
> ---
>
> Ken C. Moellman, Jr.
> LNC Region 3 Alternate Representative
> LPKY Judicial Committee
>
>
>
> On 2016-09-04 22:45, Caryn Ann Harlos wrote:
>
> Joshua, how about you make the call for a meeting? The only day off the
> table for me is 9/17 due to the Social Media training- which I hope other
> regionals might take advantage of.
>
> I will support an online meeting whether or not my transparency proposal
> gets heard, though I respectfully suggest that it be included.  I think the
> goals that I suggested would fit in with this budget discussion.
>
> --
> *In Liberty,*
> *Caryn Ann Harlos*
> Region 1 Representative, Libertarian National Committee (Alaska, Arizona,
> Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann.
> Harlos at LP.org
> Communications Director, Libertarian Party of Colorado
> <http://www.lpcolorado.org/>
> Colorado State Coordinator, Libertarian Party Radical Caucus
> <http://www.lpradicalcaucus.org/>
>
>
> On Sun, Sep 4, 2016 at 8:41 PM, Joshua Katz <planning4liberty at gmail.com
> <javascript:_e(%7B%7D,'cvml','planning4liberty at gmail.com');>> wrote:
>
>> I agree.  I would join in a request for such a meeting, including a
>> budget piece, so long as the total length is not expected to exceed 3
>> hours, preferably 2.  That is, I would not want to simply add the budget
>> item to the proposed agenda that is already circulating, but if we removed
>> enough items to make room for it, I'd support that.
>>
>> We're talking about a rather significant change, and one with strategic
>> importance.  I think it deserves to at least be discussed in person.  It's
>> a primary responsibility of ours.  It can probably also be handled in
>> relatively short order if we first get everything in a row and get the
>> relevant facts before us, as we've been doing.
>>
>> Joshua A. Katz
>> Westbrook CT Planning Commission (L in R seat)
>> On Sun, Sep 4, 2016 at 9:24 PM, Caryn Ann Harlos <
>> carynannharlos at gmail.com
>> <javascript:_e(%7B%7D,'cvml','carynannharlos at gmail.com');>> wrote:
>>
>>> It seems to me that this continues to be an excellent argument for a
>>> September meeting.  I know I feel less and less comfortable supporting or
>>> opposing anything without an actual deliberative assembly. That has also
>>> been the sense of my regional members so far.
>>>
>>> --
>>> *In Liberty,*
>>> *Caryn Ann Harlos*
>>> Region 1 Representative, Libertarian National Committee (Alaska,
>>> Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann.
>>> Harlos at LP.org
>>> Communications Director, Libertarian Party of Colorado
>>> <http://www.lpcolorado.org/>
>>> Colorado State Coordinator, Libertarian Party Radical Caucus
>>> <http://www.lpradicalcaucus.org/>
>>>
>>> On Sun, Sep 4, 2016 at 5:00 PM, Wes Benedict <wes.benedict at lp.org
>>> <javascript:_e(%7B%7D,'cvml','wes.benedict at lp.org');>> wrote:
>>>
>>>> Aaron , I'll try to answer that exactly on Tuesday.
>>>>
>>>> In advance of my exact answer, would you care to suggest an amount you
>>>> think would sound concerningly high to you, an amount you think is expected
>>>> or completely reasonable, and an amount you think is comfortably low?
>>>>
>>>> Do you have other questions you'd like us to work on that you can ask
>>>> now?
>>>>
>>>>
>>>> On Sep 4, 2016, at 6:32 PM, Aaron Starr <starrcpa at gmail.com
>>>> <javascript:_e(%7B%7D,'cvml','starrcpa at gmail.com');>> wrote:
>>>>
>>>> At first I understood that "all of these budget increase requests are
>>>> the result of good news".
>>>>
>>>> With further inquiry I now understand that is not the full explanation:
>>>> "There have been some raises and bonuses given that also affect
>>>> overall compensation--with my own total compensation being the biggest
>>>> factor there (as you know I was given a new contract by the LNC in July
>>>> 2016)."
>>>>
>>>> We are certainly aware of the change caused by the new executive
>>>> director contract. That explains some, but not all, of the requested $60K
>>>> increase for the balance of the year.
>>>>
>>>> Before supporting an increase in budget for compensation we should all
>>>> understand that there is a distinction to be made between increased
>>>> expenditures due to timing differences (or even an increase in activity)
>>>> versus increased expenditures resulting from pay raises.
>>>>
>>>> How much was paid in bonuses so far during 2016?
>>>>
>>>> Not including the Executive Director, how much has the annualized cost
>>>> of compensation increased on account of changes in pay rates?
>>>>
>>>> Aaron Starr
>>>>
>>>>
>>>> Sent from my iPad
>>>>
>>>> On Sep 2, 2016, at 10:15 AM, Wes Benedict <wes.benedict at lp.org
>>>> <javascript:_e(%7B%7D,'cvml','wes.benedict at lp.org');>> wrote:
>>>>
>>>> I haven't taken the Policy Manual out to read it in detail before
>>>> providing this response, and I haven't taken the time to investigate
>>>> line-by-line every 2016 expenditure, but in general, unless I'm mistaken,
>>>> the budgets that the LNC passes are annual limits on expenditures, not
>>>> monthly limits. Some months we may go over the average monthly budget
>>>> limitation, and some months we may go under the average monthly limit.
>>>>
>>>> Beyond monthly variations, however, as you noted below, we have indeed
>>>> consistently spent at a rate that, if continued through to the end of the
>>>> year, would put us over the 2016 annual compensation budget.
>>>>
>>>> My thinking for the 2016 effort was that we should plan for success,
>>>> but be prepared for the worst, and also front-load our expenses when it
>>>> mattered the most. So, I was comfortable spending over the average monthly
>>>> limits in the first two-thirds of the year when we had the very large
>>>> critical projects of the *national convention*, and *50 state ballot
>>>> access,* that take a lot of staff time. Had things gone really poorly
>>>> this year, we would still have had the option of cutting back staff
>>>> sufficient to meet whatever budget restrictions were in place later in the
>>>> year. As an exaggerated example, in theory, if things had going really
>>>> really poorly, we could terminate every staff member except for Robert
>>>> Kraus, terminate most contractors, and I could have resigned myself (or be
>>>> terminated). Again, that's not what we expected, or hoped for, but it was a
>>>> way to meet budget requirements if needed.
>>>>
>>>> It turns out, things have gone really well--far better than the LNC or
>>>> I projected. And my thinking back in early 2016 was that if things did go
>>>> very well this year, the LNC would likely want to increase the budget later
>>>> in the year.
>>>>
>>>> There have been some raises and bonuses given that also affect overall
>>>> compensation--with my own total compensation being the biggest factor there
>>>> (as you know I was given a new contract by the LNC in July 2016).
>>>>
>>>> The bottom line is, we can add people and hours and pay and continue
>>>> working to grow this party, or we can cut people and hours and pay, and
>>>> shrink it. My recommendation is to grow.
>>>>
>>>> In summary, we have been spending more than our average monthly
>>>> budgeted amount, and I recommend increasing the budget.
>>>>
>>>> This email took me an hour to write because I was trying to be rather
>>>> careful. Hopefully I got all of my facts right, or at least close enough.
>>>> I'll be correcting a fact in a response to Alicia.
>>>>
>>>>
>>>>
>>>> Wes Benedict, Executive Director
>>>> Libertarian National Committee, Inc.
>>>> 1444 Duke St., Alexandria, VA 22314(202) 333-0008 ext. 232, wes.benedict at lp.org <javascript:_e(%7B%7D,'cvml','wes.benedict at lp.org');>facebook.com/libertarians @LPNational
>>>> Join the Libertarian Party at: http://lp.org/membership
>>>>
>>>> On 9/2/2016 2:48 AM, Aaron Starr wrote:
>>>>
>>>> Wes,
>>>>
>>>>
>>>>
>>>> I'm still missing something here.
>>>>
>>>>
>>>>
>>>> The original budget for compensation was based on a particular staffing
>>>> level at specific amounts of compensation.
>>>>
>>>>
>>>>
>>>> It looks like the activity of the first eight months is already running
>>>> at a rate that will exceed the budget for compensation for the year. (If
>>>> $314,155 is eight months of expense, a simple extrapolation would bring us
>>>> to $471,233 for twelve months, which is well above the budget of
>>>> $388,800.)  I seem to recall that most of our compensation cost is based on
>>>> fixed salaries, not hourly rates.
>>>>
>>>>
>>>>
>>>> During the first eight months we were spending just under $40K per
>>>> month. For the last four months of the year you anticipate spending only
>>>> $34K per month, so I'm not seeing how the need for a $60K increase in the
>>>> budget is due to a need to cover increased people costs between now and the
>>>> end of the year. It appears that we were spending well over our budget
>>>> earlier during the year.
>>>>
>>>>
>>>>
>>>>
>>>>
>>>> Aaron Starr
>>>>
>>>> (805) 583-3308 Home
>>>>
>>>> (805) 404-8693 Mobile
>>>>
>>>> starrcpa at gmail.com <javascript:_e(%7B%7D,'cvml','starrcpa at gmail.com');>
>>>>
>>>>
>>>>
>>>> *From:* Lnc-business [mailto:lnc-business-bounces at hq.lp.org
>>>> <javascript:_e(%7B%7D,'cvml','lnc-business-bounces at hq.lp.org');>] *On
>>>> Behalf Of *Wes Benedict
>>>> *Sent:* Thursday, September 01, 2016 4:25 PM
>>>> *To:* lnc-business at hq.lp.org
>>>> <javascript:_e(%7B%7D,'cvml','lnc-business at hq.lp.org');>
>>>> *Subject:* Re: [Lnc-business] Upcoming budget increase requests
>>>>
>>>>
>>>>
>>>> I can't disclose exact pay rates and hours worked publicly on this
>>>> email list, as you know. In any case, the increase in the budget is to
>>>> cover more hours and more people than were originally budgeted for.
>>>>
>>>> Some contractors and staff have been working more hours, and I'd like
>>>> to continue working more hours, than were in the original budget.
>>>>
>>>> I've got more contractors than in the original budget.
>>>>
>>>> I'd like to spend more on additional staff, including interns, as
>>>> advertised here:
>>>> http://www.lp.org/blogs/staff/hiring-libertarian-packaging-interns
>>>>
>>>>
>>>> With Robert's help, the numbers below show:
>>>>
>>>> FYI – Compensation:
>>>>
>>>>
>>>>
>>>> Compensation YTD *                                           $314,155
>>>>
>>>> Est Amount for Sept-Oct (based on July/Aug)         $69,000
>>>>
>>>> Est Amount for Nov-Dec                                      $65,000
>>>>
>>>> TOTAL EST 2016:                                               $448,155
>>>>
>>>> * Includes 09/07 payroll
>>>>
>>>>
>>>> I'm prepared to scale back everywhere if needed as needed, including
>>>> cutting people, hours, pay rates, etc., if activity drops post Election Day
>>>> or whenever regardless of how far it drops.  Of course we hope to win lots
>>>> of elections and see activity skyrocket even higher after Election Day, but
>>>> I'm prudently prepared for the alternate scenario as well.
>>>>
>>>>
>>>> Wes Benedict, Executive Director
>>>>
>>>> Libertarian National Committee, Inc.
>>>>
>>>> 1444 Duke St., Alexandria, VA 22314
>>>>
>>>> (202) 333-0008 ext. 232, wes.benedict at lp.org <javascript:_e(%7B%7D,'cvml','wes.benedict at lp.org');>
>>>>
>>>> facebook.com/libertarians @LPNational
>>>>
>>>> Join the Libertarian Party at: http://lp.org/membership
>>>>
>>>> On 9/1/2016 6:25 PM, starrcpa at gmail.com
>>>> <javascript:_e(%7B%7D,'cvml','starrcpa at gmail.com');> wrote:
>>>>
>>>> Thanks for the good news!
>>>>
>>>>
>>>>
>>>> I would like to understand in greater detail the need for a $60,000
>>>> increase in compensation.
>>>>
>>>>
>>>>
>>>> Aaron Starr
>>>>
>>>> Sent from my iPhone
>>>>
>>>>
>>>> On Sep 1, 2016, at 12:46 PM, Wes Benedict <wes.benedict at lp.org
>>>> <javascript:_e(%7B%7D,'cvml','wes.benedict at lp.org');>> wrote:
>>>>
>>>> Dear LNC:
>>>>
>>>> I'd like to start a discussion about several budget increase requests
>>>> before a formal motion is considered. I mentioned to the chair that I
>>>> thought it would be good for me to put this before the LNC soon, and he
>>>> agreed it was okay for me to get this discussion started on this list.
>>>>
>>>> To me, all of these budget increase requests are the result of good
>>>> news -- our revenue, membership, and interest is very high, far higher than
>>>> budgeted, and as a result, many of our expenses are higher as well.
>>>>
>>>> More revenue and members means more membership cards and LP News to
>>>> mail out, and bigger lists to send fundraising letter to.
>>>>
>>>> The original 2016 Budget adopted for the entire year of 2016  was
>>>> *$1,474,561*. My preliminary estimate for August 31, 2016 YTD revenue
>>>> is $1,679,938 (July 2016 YTD) plus $412,425 (August 2016) =
>>>> *$2,092,363*. It's possible we could double the original revenue
>>>> budgeted for the entire year (although I'm not ready to predict that).
>>>>
>>>> Dues-paying membership has increased from *11,693* at the start of
>>>> January to approximately *19,300* at the end of August.
>>>>
>>>> The original budget for branding revenue was *$35,000*. We've already
>>>> brought in *$205,862* in branding revenue (that's mostly the stuff we
>>>> sell at LPStore.org <http://lpstore.org>).
>>>>
>>>> Again, all of these increases in donations, memberships, and store
>>>> orders, means higher postage, credit card processing fees, purchases of
>>>> items offered at LPStore.org <http://lpstore.org>, office supplies,
>>>> and some labor to help process all that stuff.
>>>>
>>>> Robert Kraus and I have looked over the results of this year to date,
>>>> considered what things could look like going forward, and are recommending
>>>> that the LNC proposed and passes the following budget increases.
>>>>
>>>>
>>>> 26-Brand Political Materials Revenue increase by $150,000 to $400,000
>>>> 32-Fundraising Costs increase by $60,000 to $201,364
>>>> 33-Membership Fundraising Costs increase by $35,000 to $127,200
>>>> 40-Adminstrative Costs increase by $50,000 to $310,050
>>>> 45-Compensation increase by $60,000 to $448,800
>>>> 55-Brand Political Materials Expense increase by $150,000 to $400,000
>>>> 85-Member Communication increase by $17,500 to $62,500
>>>>
>>>> We have the revenue to pay for all of these budget increases. I'm
>>>> pretty certain we have more money in the bank for the September of a
>>>> Presidential election year than ever before in the history of the
>>>> Libertarian Party, and that's in spite of paying what it has taken to
>>>> achieve 50 state ballot access for the first time since 2000.
>>>>
>>>> While we are not technically over budget in most areas, we are trending
>>>> in that direction and certainly will go way over budget by the end of the
>>>> year unless I proactively cut back on fundraising letters, LP News,
>>>> shipping LPStore.org <http://lpstore.org> materials, staff levels, and
>>>> other areas. That could be done, but I don't think it's the right thing to
>>>> do. For example, instead of focusing my time on trying to continue the
>>>> growth of membership and fundraising by hiring another intern to fill boxes
>>>> with campaign materials, I could spend my own time stuffing envelopes and
>>>> filling boxes with yard signs--something I do actually enjoy and find to be
>>>> therapeutic.
>>>>
>>>> I'd be happy to try to respond to any questions you have on these
>>>> items.
>>>>
>>>> Thanks for your consideration. I'm hoping we have a productive
>>>> discussion on this, and then the chair or treasurer can propose a motion
>>>> that fits a consensus for you to consider of the Labor Day Weekend.
>>>>
>>>>
>>>> --
>>>>
>>>> Wes Benedict, Executive Director
>>>>
>>>> Libertarian National Committee, Inc.
>>>>
>>>> 1444 Duke St., Alexandria, VA 22314
>>>>
>>>> (202) 333-0008 ext. 232, wes.benedict at lp.org <javascript:_e(%7B%7D,'cvml','wes.benedict at lp.org');>
>>>>
>>>> facebook.com/libertarians @LPNational
>>>>
>>>> Join the Libertarian Party at: http://lp.org/membership
>>>>
>>>> _______________________________________________
>>>> Lnc-business mailing list
>>>> Lnc-business at hq.lp.org
>>>> <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>
>>>> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>>>>
>>>>
>>>>
>>>>
>>>> _______________________________________________
>>>>
>>>> Lnc-business mailing list
>>>>
>>>> Lnc-business at hq.lp.org <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>
>>>>
>>>> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>>>>
>>>>
>>>>
>>>>
>>>> _______________________________________________
>>>> Lnc-business mailing listLnc-business at hq.lp.org <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>>>>
>>>> _______________________________________________
>>>> Lnc-business mailing list
>>>> Lnc-business at hq.lp.org
>>>> <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>
>>>> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>>>>
>>>> _______________________________________________
>>>> Lnc-business mailing list
>>>> Lnc-business at hq.lp.org
>>>> <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>
>>>> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>>>>
>>>>
>>>> _______________________________________________
>>>> Lnc-business mailing list
>>>> Lnc-business at hq.lp.org
>>>> <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>
>>>> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>>>>
>>>
>>>
>>>
>>> --
>>> *In Liberty,*
>>> *Caryn Ann Harlos*
>>> Region 1 Representative, Libertarian National Committee (Alaska,
>>> Arizona, Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann.
>>> Harlos at LP.org <javascript:_e(%7B%7D,'cvml','Caryn.Ann.Harlos at LP.org');>
>>> Communications Director, Libertarian Party of Colorado
>>> <http://www.lpcolorado.org>
>>> Colorado State Coordinator, Libertarian Party Radical Caucus
>>> <http://www.lpradicalcaucus.org>
>>>
>>>
>>>
>>>
>>>
>>> _______________________________________________
>>> Lnc-business mailing list
>>> Lnc-business at hq.lp.org
>>> <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>
>>> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>>>
>>
>> _______________________________________________
>> Lnc-business mailing list
>> Lnc-business at hq.lp.org
>> <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>
>> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>>
>
>
>
> --
> *In Liberty,*
> *Caryn Ann Harlos*
> Region 1 Representative, Libertarian National Committee (Alaska, Arizona,
> Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann.
> Harlos at LP.org <javascript:_e(%7B%7D,'cvml','Caryn.Ann.Harlos at LP.org');>
> Communications Director, Libertarian Party of Colorado
> <http://www.lpcolorado.org>
> Colorado State Coordinator, Libertarian Party Radical Caucus
> <http://www.lpradicalcaucus.org>
>
>
>
>
>
> _______________________________________________
> Lnc-business mailing list
> Lnc-business at hq.lp.org
> <javascript:_e(%7B%7D,'cvml','Lnc-business at hq.lp.org');>
> http://hq.lp.org/mailman/listinfo/lnc-business_hq.lp.org
>
>

-- 
*In Liberty,*
*Caryn Ann Harlos*
Region 1 Representative, Libertarian National Committee (Alaska, Arizona,
Colorado, Hawaii, Kansas, Montana, Utah, Wyoming, Washington) - Caryn.Ann.
Harlos at LP.org <Caryn.Ann.Harlos at LP.org>
Communications Director, Libertarian Party of Colorado
<http://www.lpcolorado.org>
Colorado State Coordinator, Libertarian Party Radical Caucus
<http://www.lpradicalcaucus.org>
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