Bar News - May 18, 2001
The Rationale for a Dues Increase
A MEMBERSHIP MEETING has been scheduled for Monday, June 4, starting at 4 p.m. at the Ramada Inn in Manchester to consider a proposed increase in dues and an amendment to the NHBA bylaws regarding the process for adjusting dues amounts.
The following are a series of questions and answers to provide Bar members with some of the background necessary to consider the reasons why the NHBA Finance Committee and the Board of Governors has recommended an increase in the dues structure.
Why is a dues increase necessary now?
Since Bar dues were last raised by $15 in 1993-94, NH's cost of living has steadily increased by roughly 2 to 3 percent per year. According to the Bar's survey on lawyer income published earlier this year, median hourly fees charged by lawyers in private practice increased 20 percent from 1995 to 2000, and overall income increased 14 percent during that period. Prior to the June 1994 dues change, NHBA dues had remained at the same level for 14 years, since 1979. As dues have remained at the same level during this period, growth in the organization's scope and services has been absorbed through the non-dues portion of the revenue stream, and through conservative management of the association.
If non-dues revenue is so important, why not raise more of it?
NHBA non-dues revenue sources are primarily material sales, grants and other fundraising activities, and continuing legal education tuition. With increasing competition in the CLE market and level funding from grant sources, the NHBA non-dues revenue sources have stretched as far as possible to absorb operating cost increases over the past seven years. These increases have included the cost of materials, printing and production of publications; technology costs, including Y2K-compliant software, hardware upgrades and development of the NHBA Web site; as well as personnel and benefit expenses and other costs associated with the increased volume of services (ex. 40 CLE programs were offered in 93-94, compared to 80 in 2000-2001).
Doesn't the increase in Bar membership provide income to offset expense increases?
The income from new admissions is not significant-last year, the increase in dues revenue amounted to $24,613, about 1 percent of the total budget. For the past seven years, income from dues (incorporating new admissions and offset by retirements or changes in status) has increased by about 3 percent a year. However, approximately 60 percent of the Bar's revenue comes from non-dues sources. That means that as the Bar has grown, the demand for services has grown, without a corresponding increase in dues income.
Is the Bar delivering value for our dues dollars?
Even at the proposed new rate, NHBA dues are reasonable when compared with other state bars and, indeed, other professions. In making the recommendation, the Board of Governors noted that without the increase, it will be impossible to maintain what is considered an appropriate level of service to the membership, the public and the justice system.
The association's services and activities are under ongoing review. Last year, an effort was undertaken to streamline the organization's focus to continually determine and meet the most pressing needs of members, the public and the justice system. With multiple constituencies and a challenging competitive environment, few services are deemed non-essential, and some services generate non-dues revenue.
While individual member perspectives may differ based on utilization of services, NHBA membership is a good buy when compared to mandatory registration fees in other jurisdictions. In short, the New Hampshire Bar maintains an infrastructure that serves members, while licensing fees in other states merely catalog members.
In the voluntary bars in states surrounding New Hampshire, mandatory registration fees (which do not include services such as production of high-quality CLE at below-market prices; production of scholarly journals and frequently published, substantial newspapers; access to member areas of Web sites; a lawyer referral network, etc.) are:
Mandatory Registration Fees
|
Vermont |
$140 |
|
Maine |
$150 |
|
Massachusetts |
$220 |
Comparatively, these rates make New Hampshire's fee-which includes not only yearly registration, but the services mentioned above and more-a good value, even with the proposal to raise the top dues amount from $190 to $240. A comparison of the cost of the registration fee and the cost of bar association membership in our neighboring states shows:
Mandatory Registration Plus Voluntary Bar Dues
|
Vermont |
$270 |
|
Maine |
$355 |
|
Massachusetts |
$440 |
In addition to the services mentioned above, membership in the NHBA brings access to such services as:
- Extensive, low-priced CLEs with video/audio availability, and the convenience of reporting NHBA CLE credit hours back to members for MCLE reporting purposes;
- No-cost dispute resolution services;
- New member mentoring and education;
- Ethics opinion advisory service;
- Confidential assistance for members with career and or life-threatening problems;
- Support for sections and committees. The committees and sections produce or facilitate dissemination of such valuable practice aids (free to members) as the Model Fee Agreements, Child Support Guidelines and NH Title Examination Standards; the periodic economic survey of law practice in NH; and the recent survey of the courts conducted by the Committee on Cooperation with the Courts.
- Lending library;
- Meeting space availability;
- Endorsed professional liability insurance;
The Bar's Legal Services program, entirely grant funded, provides support to fulfill pro bono obligations and facilitation of other public service work.
Overall, the Bar's infrastructure supports efforts to promote and advance the legal profession and the justice system in New Hampshire.
We encourage you to attend the business meeting on June 4 to vote on the following recommended changes to the NHBA dues structure.
|
Membership Category |
Dues Since 1994-95 |
Proposed 2001-02 Dues |
|
Active members admitted 5 or more yrs. |
$190
|
$240
|
|
Active members admitted less than 5 yrs. |
$140
|
$190
|
|
Full-Time Judicial members |
$165
|
$215
|
|
Inactive members |
$ 90
|
$140
|
|
Inactive Retired members |
$ 25
|
$25
|
|
Honorary Active members |
$ -0-
|
$-0-
|
|
Honorary Inactive members |
$ -0-
|
$-0-
|
|
Military Status members |
$ -0-
|
$-0-
|
|