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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>Dear LNC members,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I have some comments about the proposed budget figures that I hope you will find useful.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b>General Comment. </b>Given that October’s YTD financial statements had reserves standing at $82K, adopting a budget with a $254K deficit is probably not a prudent move. My general suggestion is that we should adopt budgets based on our fears, not our hopes. It’s easier to make additions later, if we outperform our budget, but far harder to make cuts effectively once the money has already been spent.<o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Confidential Salaries and Contractor Compensation.</b> The sheet detailing these figures does not disclose all compensation (only the portions attributed to administrative expense). This makes it unclear to the LNC that built into this budget is a very large increase in staffing that is causing our budgeted expenses to well exceed our budgeted revenues. To make an informed decision, the LNC should insist on seeing a listing of all compensation paid to staff and contractors (both admin and non-admin) during 2017 (including those who are no longer employed) with a projection of what the full year figures will be. Those figures should be shown next to a similar listing for 2018 for comparison.<b><o:p></o:p></b></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Recurring Pledges.</b> The assumption is that the revenues will increase by 15%, starting with the first month. Given the challenges with membership levels, this might be optimistic. <o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Convention Revenue.</b> Convention Revenue should be budgeted to match Convention Expense. The current budget shows a profit of $10,000.<o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Convention Banquet Fundraising.</b> Using the average of the Presidential and Non-Presidential figures for Convention Banquet Fundraising is overly optimistic. It would be more appropriate to use the Non-Presidential figure of $23K. If our actual experience is better, we can modify the budget upward at that time.<o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Other Event Fundraising.</b> I’d like to see better support for the $50K figure and the associated $7.5K expense.<o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Political Materials. </b>I suggest that figures lower than $100K for revenues and expense would be more appropriate, as this is a non-Presidential year.<o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Direct Mail Fundraising Expense. </b>The general and donor renewal expense include $48K of contract expense with notes suggesting there has been $4K per month in such expense during 2017. That does not appear to be true. Please look at that closely. <o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Online Contribution Expense – Donor Renewal. </b>Budgeting $36K for Facebook and Text Messaging, methods for which we have no successful experience, seems high. I suggest that we start with a smaller figure and then only expand upon that amount once we have evidence that this is a productive use of funds.<o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Affiliate Development.</b> I have seen no support for the $60K figure.<o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Media Relations. </b>This figure is increasing $48K because of the addition of a contractor.<o:p></o:p></p><p class=MsoNormal><b><o:p> </o:p></b></p><p class=MsoNormal><b>Candidate Support and Training.</b> <b> </b>This figure is increasing $48.6K because of the addition of a contractor.<b><o:p></o:p></b></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Aaron Starr<o:p></o:p></p><p class=MsoNormal>(805) 583-3308 Home<o:p></o:p></p><p class=MsoNormal>(805) 404-8693 Mobile<o:p></o:p></p><p class=MsoNormal>starrcpa@gmail.com<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>