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<p>Aaron, I hope I have found all of the bonuses and affects on
compensation from raises. It is possible I've missing something or
someone. If so, it is not intentional. <br>
</p>
<p><span style="background-color: rgba(255, 255, 255, 0);">How much
was paid in bonuses so far during 2016? </span> <b>$8,600</b>.<br>
</p>
<p><span style="background-color: rgba(255, 255, 255, 0);">Not
including the Executive Director, how much has the annualized
cost of compensation [Line 45--Compensation] increased on
account of changes in pay rates?</span> <b>$7,030</b>.</p>
<p>Aaron, I think bonuses and raises aren't the primary factor
pushing us over budget on compensation--rather, it's my desire to
add staff to accommodate growth. <br>
</p>
<p>If anyone wants to know who got how much of a raise and how much
of a bonus, you can send an email to Robert Kraus and he will give
that confidential information but you're supposed to agree to keep
that confidential. The LNC has as a practice kept pay details
confidential. It's not something that I have personally pushed
for, but I have certainly understood the desire for the LNC to
have that practice and I have tried to accommodate the LNC on
this. <br>
</p>
<p><br>
</p>
<pre class="moz-signature" cols="72">Wes Benedict, Executive Director
Libertarian National Committee, Inc.
1444 Duke St., Alexandria, VA 22314
(202) 333-0008 ext. 232, <a class="moz-txt-link-abbreviated" href="mailto:wes.benedict@lp.org">wes.benedict@lp.org</a>
facebook.com/libertarians @LPNational
Join the Libertarian Party at: <a class="moz-txt-link-freetext" href="http://lp.org/membership">http://lp.org/membership</a></pre>
<div class="moz-cite-prefix">On 9/4/2016 7:00 PM, Wes Benedict
wrote:<br>
</div>
<blockquote cite="mid:FC1BF8A7-1848-4775-BE50-4722268F080B@lp.org"
type="cite">
<meta http-equiv="content-type" content="text/html;
charset=windows-1252">
<div>Aaron , I'll try to answer that exactly on Tuesday. </div>
<div><br>
</div>
<div>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?</div>
<div><br>
</div>
<div>Do you have other questions you'd like us to work on that you
can ask now? </div>
<div><br>
</div>
<div><br>
On Sep 4, 2016, at 6:32 PM, Aaron Starr <<a
moz-do-not-send="true" href="mailto:starrcpa@gmail.com">starrcpa@gmail.com</a>>
wrote:<br>
<br>
</div>
<blockquote type="cite">
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<div>At first I understood that "<span
style="background-color: rgba(255, 255, 255, 0);">all of
these budget increase requests are the result of good
news".</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);"><br>
</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);">With further inquiry I now
understand that is not the full explanation: </span>"<span
style="background-color: rgba(255, 255, 255, 0);">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)."</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);"><br>
</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);">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. </span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);"><br>
</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);">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.</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);"><br>
</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);">How much was paid in bonuses so
far during 2016?</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);"><br>
</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);">Not including the Executive
Director, how much has the annualized cost of compensation
increased on account of changes in pay rates?</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);"><br>
</span></div>
<div id="AppleMailSignature"><span style="background-color:
rgba(255, 255, 255, 0);">Aaron Starr</span></div>
<div><br>
</div>
<div><br>
Sent from my iPad</div>
<div><br>
On Sep 2, 2016, at 10:15 AM, Wes Benedict <<a
moz-do-not-send="true" href="mailto:wes.benedict@lp.org">wes.benedict@lp.org</a>>
wrote:<br>
<br>
</div>
<blockquote type="cite">
<div>
<meta content="text/html; charset=windows-1252"
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<p>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. <br>
</p>
<p>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. <br>
</p>
<p>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 <b>national convention</b>,
and <b>50 state ballot access,</b> 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.</p>
<p>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.<br>
</p>
<p>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). </p>
<p>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. <br>
</p>
<p>In summary, we have been spending more than our average
monthly budgeted amount, and I recommend increasing the
budget. <br>
</p>
<p>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.<br>
</p>
<p><br>
</p>
<pre class="moz-signature" cols="72">Wes Benedict, Executive Director
Libertarian National Committee, Inc.
1444 Duke St., Alexandria, VA 22314
(202) 333-0008 ext. 232, <a moz-do-not-send="true" class="moz-txt-link-abbreviated" href="mailto:wes.benedict@lp.org">wes.benedict@lp.org</a>
<a moz-do-not-send="true" href="http://facebook.com/libertarians">facebook.com/libertarians</a> @LPNational
Join the Libertarian Party at: <a moz-do-not-send="true" class="moz-txt-link-freetext" href="http://lp.org/membership">http://lp.org/membership</a></pre>
<div class="moz-cite-prefix">On 9/2/2016 2:48 AM, Aaron
Starr wrote:<br>
</div>
<blockquote
cite="mid:039101d204e6$09aa2360$1cfe6a20$@gmail.com"
type="cite">
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<div class="WordSection1">
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Wes,<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">I’m
still missing something here.<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">The
original budget for compensation was based on a
particular staffing level at specific amounts of
compensation.<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">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. <o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Aaron
Starr<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">(805)
583-3308 Home<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">(805)
404-8693 Mobile<o:p></o:p></span></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><a
moz-do-not-send="true"
class="moz-txt-link-abbreviated"
href="mailto:starrcpa@gmail.com">starrcpa@gmail.com</a><o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #B5C4DF
1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span
style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext">From:</span></b><span
style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext">
Lnc-business [<a moz-do-not-send="true"
class="moz-txt-link-freetext"
href="mailto:lnc-business-bounces@hq.lp.org">mailto:lnc-business-bounces@hq.lp.org</a>]
<b>On Behalf Of </b>Wes Benedict<br>
<b>Sent:</b> Thursday, September 01, 2016 4:25
PM<br>
<b>To:</b> <a moz-do-not-send="true"
class="moz-txt-link-abbreviated"
href="mailto:lnc-business@hq.lp.org">lnc-business@hq.lp.org</a><br>
<b>Subject:</b> Re: [Lnc-business] Upcoming
budget increase requests<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p>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. <o:p></o:p></p>
<p class="MsoNormal">Some contractors and staff have
been working more hours, and I'd like to continue
working more hours, than were in the original
budget.<br>
<br>
I've got more contractors than in the original
budget.<br>
<br>
I'd like to spend more on additional staff,
including interns, as advertised here:<br>
<a moz-do-not-send="true"
href="http://www.lp.org/blogs/staff/hiring-libertarian-packaging-interns">http://www.lp.org/blogs/staff/hiring-libertarian-packaging-interns</a><br>
<br>
<br>
With Robert's help, the numbers below show:<br>
<br>
<o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy">FYI
– Compensation:</span><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy"> </span><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy">Compensation
YTD *
$314,155 </span><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy">Est
Amount for Sept-Oct (based on July/Aug)
$69,000 </span><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy">Est
Amount for Nov-Dec
$65,000 </span><o:p></o:p></p>
<p class="MsoNormal"
style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy">TOTAL
EST 2016:
$448,155 </span><o:p></o:p></p>
<p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Verdana","sans-serif";color:navy">*
Includes 09/07 payroll </span><o:p></o:p></p>
<p class="MsoNormal"><br>
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.<br>
<br>
<br>
<o:p></o:p></p>
<pre>Wes Benedict, Executive Director<o:p></o:p></pre>
<pre>Libertarian National Committee, Inc.<o:p></o:p></pre>
<pre>1444 Duke St., Alexandria, VA 22314<o:p></o:p></pre>
<pre>(202) 333-0008 ext. 232, <a moz-do-not-send="true" href="mailto:wes.benedict@lp.org">wes.benedict@lp.org</a><o:p></o:p></pre>
<pre><a moz-do-not-send="true" href="http://facebook.com/libertarians">facebook.com/libertarians</a> @LPNational<o:p></o:p></pre>
<pre>Join the Libertarian Party at: <a moz-do-not-send="true" href="http://lp.org/membership">http://lp.org/membership</a><o:p></o:p></pre>
<div>
<p class="MsoNormal">On 9/1/2016 6:25 PM, <a
moz-do-not-send="true"
href="mailto:starrcpa@gmail.com">starrcpa@gmail.com</a>
wrote:<o:p></o:p></p>
</div>
<blockquote
style="margin-top:5.0pt;margin-bottom:5.0pt">
<div>
<p class="MsoNormal">Thanks for the good news!<o:p></o:p></p>
</div>
<div id="AppleMailSignature">
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div id="AppleMailSignature">
<p class="MsoNormal">I would like to understand in
greater detail the need for a $60,000 increase
in compensation. <o:p></o:p></p>
</div>
<div id="AppleMailSignature">
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<div id="AppleMailSignature">
<p class="MsoNormal">Aaron Starr<br>
<br>
Sent from my iPhone<o:p></o:p></p>
</div>
<div>
<p class="MsoNormal" style="margin-bottom:12.0pt"><br>
On Sep 1, 2016, at 12:46 PM, Wes Benedict <<a
moz-do-not-send="true"
href="mailto:wes.benedict@lp.org">wes.benedict@lp.org</a>>
wrote:<o:p></o:p></p>
</div>
<blockquote
style="margin-top:5.0pt;margin-bottom:5.0pt">
<div>
<p class="MsoNormal">Dear LNC:<br>
<br>
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.<br>
<br>
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. <br>
<br>
More revenue and members means more membership
cards and LP News to mail out, and bigger
lists to send fundraising letter to.<br>
<br>
The original 2016 Budget adopted for the
entire year of 2016 was <b>$1,474,561</b>.
My preliminary estimate for August 31, 2016
YTD revenue is $1,679,938 (July 2016 YTD) plus
$412,425 (August 2016) = <b>$2,092,363</b>.
It's possible we could double the original
revenue budgeted for the entire year (although
I'm not ready to predict that). <br>
<br>
Dues-paying membership has increased from <b>11,693</b>
at the start of January to approximately <b>19,300</b>
at the end of August. <br>
<br>
The original budget for branding revenue was <b>$35,000</b>.
We've already brought in <b>$205,862</b> in
branding revenue (that's mostly the stuff we
sell at <a moz-do-not-send="true"
href="http://lpstore.org">LPStore.org</a>).<br>
<br>
Again, all of these increases in donations,
memberships, and store orders, means higher
postage, credit card processing fees,
purchases of items offered at <a
moz-do-not-send="true"
href="http://lpstore.org">LPStore.org</a>,
office supplies, and some labor to help
process all that stuff.<br>
<br>
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. <br>
<br>
<br>
26-Brand Political Materials Revenue increase
by $150,000 to $400,000<br>
32-Fundraising Costs increase by $60,000 to
$201,364<br>
33-Membership Fundraising Costs increase by
$35,000 to $127,200<br>
40-Adminstrative Costs increase by $50,000 to
$310,050<br>
45-Compensation increase by $60,000 to
$448,800<br>
55-Brand Political Materials Expense increase
by $150,000 to $400,000<br>
85-Member Communication increase by $17,500 to
$62,500<br>
<br>
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.<br>
<br>
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 <a
moz-do-not-send="true"
href="http://lpstore.org">LPStore.org</a>
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. <br>
<br>
I'd be happy to try to respond to any
questions you have on these items. <br>
<br>
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. <br>
<br>
<br>
<o:p></o:p></p>
<pre>-- <o:p></o:p></pre>
<pre>Wes Benedict, Executive Director<o:p></o:p></pre>
<pre>Libertarian National Committee, Inc.<o:p></o:p></pre>
<pre>1444 Duke St., Alexandria, VA 22314<o:p></o:p></pre>
<pre>(202) 333-0008 ext. 232, <a moz-do-not-send="true" href="mailto:wes.benedict@lp.org">wes.benedict@lp.org</a><o:p></o:p></pre>
<pre><a moz-do-not-send="true" href="http://facebook.com/libertarians">facebook.com/libertarians</a> @LPNational<o:p></o:p></pre>
<pre>Join the Libertarian Party at: <a moz-do-not-send="true" href="http://lp.org/membership">http://lp.org/membership</a><o:p></o:p></pre>
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