July 2008

The Board’s Work

by Michael Heatherly

Spokane: April 25–26, 2008

At its April 25–26 meeting in Spokane, the WSBA Board of Governors addressed a projected $1 million budget deficit for fiscal year 2009 that likely will prompt an increase in the annual member license fees for 2010–11. Meanwhile, as part of a project to streamline WSBA operations, the Board placed on inactive status three committees whose major responsibilities already had been shifted to WSBA staff.

The Board heard a report from Governor and Treasurer Doug Lawrence regarding the expected budget deficit and measures being taken to manage it. Upon recommendation of the Budget and Audit Committee, the Board unanimously approved an increase in the general operating reserve fund from $1.2 million to $1.5 million and an increase in the facilities reserve fund from $1.4 million to $2.5 million.

The expanded reserves will help protect WSBA general funds against anticipated increases in major expense areas. These include an expected significant increase in rent when the 10-year lease on the new WSBA headquarters expires. The current lease is at below-market rates, and lease payments are expected to be considerably higher whether the WSBA stays in the current space or moves at the end of the term.

In related action, the BOG voted to shorten the term for which annual WSBA member license fees are set from three to two years. The Budget and Audit Committee recommended the change in order to allow more flexibility in setting fees to respond to changes in WSBA finances.

Comments made during discussion of the financial measures suggested that a proposed license fee increase for fiscal years 2010 and 2011 is all but unavoidable. Lawrence noted that even the increased reserves would dwindle to zero in five years if the anticipated deficit persists. Many expenses cannot be reduced, or could be reduced only at the expense of critical WSBA services, he said. Meanwhile, license fees are the primary source of income that could make up the deficit.

A specific fee proposal was not discussed. Under a revised timetable, the Budget and Audit Committee is to make its preliminary recommendation regarding fees for 2010–11 by mid-July. The BOG is scheduled to discuss those recommendations at the July 25–26, 2008, meeting in Walla Walla. The Budget and Audit Committee will then make its final recommendation in late August. At the September 18–19 meeting in Seattle, the last of the fiscal year, the Board will vote to set the fees and to approve the 2009 fiscal year budget. The BOG’s decision on fees would then be subject to approval by the Supreme Court.

In other business, the BOG took action on several recommendations by the Strategic Planning Committee, which is reviewing all WSBA committees, boards, and panels to improve efficiency. The Board voted to suspend operation of three standing committees: the Alternative Dispute Resolution Committee, the Law Office Management Assistance Program Committee, and the Lawyers Assistance Program Committee. The functions previously carried out by the affected committees have been taken over by full-time, staffed WSBA programs.

The BOG voted to place the appointment of members to the Civil Rights Committee on hold pending the expected formation of a Civil Rights Section, which would have broader authority than a committee. Work to create the section is under way and could be completed within the next few months. However, the Board rejected a proposal to place the Professionalism Committee into hiatus while a comprehensive effort to promote professionalism is carried out. Meanwhile, the BOG voted to table consideration of a proposal to realign the Pro Bono and Legal Aid Committee (PBLAC) to operate under the Access to Justice (ATJ) Board rather than the BOG. Dan Young, PBLAC chair the past three years, told BOG members he was unconvinced that the ATJ Board was the appropriate body to oversee PBLAC’s functions or that the ATJ Board was even interested in doing so. ATJ Board member Greg Dallaire asked the BOG to defer action until the ATJ Board can discuss the matter and present its position. The proposal was to be taken up again at the June 5–6 BOG meeting in Vancouver.

Finally, the Board approved a request to add a second non-lawyer position on the Washington State Bar Foundation Board of Trustees. The foundation is a nonprofit organization that raises money to fund programs including the Loan Repayment Assistance Program and the Presidents’ and Governors’ Diversity Scholarship. The trustees are attempting to broaden the organization’s base beyond the legal community. After approving the addition of the second non-lawyer position, the BOG appointed the two non-lawyer trustees for the next term: Barbara Potter, executive vice-president of Laird Norton Tyee Trust Co., and Bart Wilson, CPA, shareholder in Bader Martin, PS. 

Bar News Editor Michael Heatherly practices in Bellingham and can be reached at 360-312-5156 or barnewseditor@wsba.org.