Studios

Finances and Local 136

From the President’s Desk

OK. Here it is loud and clear. Make no mistake. AFM Local 136 is currently in a deficit situation. We are currently spending more than we are taking in. I’ve examined several different Locals in this country and found they are all operating in a deficit (For example, Local 5 in Detroit with a $14,000.00 deficit). In talking with the officers of those Locals they are constantly trying to balance the union’s mission with a balanced budget and it is a challenge they almost never win. Now let's examine a bit of the history behind this so that you will understand that there is a light at the end of the tunnel. Keep in mind that, while everything below was transpiring we were still providing and increasing services to our members each year while suffering from problems in delinquent membership and work dues.

In 2002 Local 136 embarked on a public relations campaign to fix our bad public image. This required large expenditures when we were still being hit by huge tax bills, fines and fees left over from our previous administration, plus a very large per capita dues bill to the AFM. We also had other programs outstanding that we were supporting at this time and we were still in a building that took over $30,000 a year out of our budget due to maintenance issues. This was at a time when we did not have any savings what so ever. However, this program worked and every expense was justified.

In 2003 we began examining ways to eliminate our tax debt and our per capita delinquency. That was our primary concern at that time. We decided that, the only way to do this was to rid ourselves of a building that was falling down around our ears. We sold the building, paid our past due bills and put over $200,000 in an investment account. We then moved into the Clay Center as a temporary location until we found a new one. We began paying $12,000 a year in rent, but felt that was justified as it was less than half of the outlay in expenses on the previous building annually and all utilities expenditures were eliminated. We then began searching in earnest for a location suitable for our needs: low cost office space, rehearsal/performance space, practice/teaching rooms, etc.

In 2004 the WV Symphony Orchestra found itself in a situation where they lost all their sponsorship for a performance at the Charleston Sternwheel Regatta. AFM Local 136 reached into its investment and paid those symphonic members for all those services to the tune of $33,500, restoring already accounted for income. We felt that expenditure was necessary and justified based on the amount of dues our symphonic brethren provide. We then began an initiative to increase musician work in southern WV by helping the overall music environment. We began sponsoring various projects in our jurisdiction, including music education, in the hopes that, with an improved environment more jobs would follow. This has proven true, though it has taken awhile.

During this time, we formed a committee to examine new locations for AFM Local 136. This committee presented a few locations to us for review and it was found that these locations were unsuitable for our needs. Local 136 also examined an opportunity to partner with the Elks Club and a law firm in separate lease agreements, but also found those unsuitable. At this time we were already in a spending deficit situation due mainly to problems with dues collection, including work dues from the WV Symphony which were being withheld from playing members, but not paid to Local 136 in a timely fashion. At one point, the WVSO owed Local 136 almost $12,000 in work dues. This continues periodically to some extent. Everyone should remember that Local 136 must pay the national AFM per capita dues for all its members regardless of whether said members pay their dues on time. This is sometimes a challenge, requiring measures such as withdrawing funds from our investment until the proper dues income arrives. We also decided to continue all the programs we had started, regardless of the deficit we were experiencing as those programs benefited our members and were desired based on a membership survey taken during this time. We began to examine ways to reduce some of our costs to eliminate this deficit without reducing our services and initiatives.

We then were approached by the Kanawha Players to help them with their plans for a new building. We recognized an opportunity to reduce our costs in the long term with a short term investment of ~$50,000 in infrastructure and improvements on our proposed facilities in this new building. These savings were to be realized in the elimination of rent and storage fees and the initial investment was to come from our investment account which was approved by the membership as part of the lease agreement that was presented to you. It was decided at that time to make the $50,000 infrastructure investment in smaller increments, keeping as much money in our account as possible to gain interest income, which is substantial. We anticipated an annual savings of over $15,000 as an immediate gain upon moving into the building and began budgeting based on this projection. We were promised that we could move into the building as soon as the fire code improvement work was completed. However, the Kanawha Players ran into problems completing the work and delayed our moving in by a year. That means we had to pay that $15,000 unbudgeted. This has essentially put us in an $18,000 deficit instead of the projected $3000, which is where we currently stand.

Now, having said all that, let's look at where we are going. We are continuing to add more services and benefits every year as well as supporting projects that benefit our membership and the music environment as a whole, including a new initiative to provide new work opportunities through collective bargaining agreements with major establishments such as the Tri State Race Track and Power Park. You may ask, why are you doing this when you are in a deficit situation? Well, that answer is pretty simple. If we don't do this our membership will suffer in the long run, as was experienced during the last administration. Plus, with the start of our new non-profit Appalachian Musician Foundation, we will be moving all sponsorship costs away from our budget and into the hands of a separate entity whose sole purpose is to raise funds for these kind of things. This $8000 per year savings, added to the $15,000 per year savings in rent and storage fees upon moving into our new location, provides us with a possible annual surplus of $5000. Oh, yeah, and I forgot to mention that we'll begin to move into our new facility within the month, providing our membership with never before available quality rehearsal/performance space. There are also plans to have recording facilities as well as teaching space for our members.

Local 136 is continuing to grow in numbers, providing us with the opportunity to provide more and more services to our members. That is our job, after all (AFM Local 136 Constitution, Article II). More numbers also means more dues income, adding to the bottom line. Contrary to the rantings of a few nay sayers, we DO have a plan and it is finally coming to fruition. We must stay the course to see the benefits of this plan and we'll actually see the savings mentioned within the year. Amazing, but true. I'm very excited about these events and our new facility will go a very long way towards improving in music environment within our jurisdiction by providing the space needed for our members. Oh, by the way, did I forget to mention that this space will be FREE to our members?

Fraternally,

Brad Bradley, President

AFM Local 136

From the Office of the Secretary / Treasurer

Dear AFM Local 136 Membership:

Holiday Greetings! I hope that everyone had a safe and enjoyable Thanksgiving. I would like to personally wish everyone a Happy Holiday. I hope that work opportunities are frequent and profitable for our membership.

I just wanted to drop a note in this edition of the newsletter to say hello and update the membership on our financial position. You will find enclosed in this edition copies of our year-to-date Profit and Loss Statement. This report compares this year’s results from operations with last year’s.

Your board looks forward to the AFM’s move to the NEW HEADQUARTERS in the Kanawha Player’s Building on Washington Street. (I’m sure that the membership as a whole is excited as well.) This move will enable the AFM 136 and its board to better serve our members in this new spacious location; and, this move will help us to balance our budget

Your board had lengthy budgetary meeting last month, and feels that the AFM is well down the road to financial recovery. Our move will enable us to save costly rent expenditures from our old location.

I urge caution however! Current AFM commitments and the need to serve our membership prohibit the board from offering a completely balanced budget in 2008. It is our desire and goal; however, to balance current and future needs with the Mission of the AFM. Financial responsibility is a goal, but that goal can not allow us to fail in our need to serve you, the membership.

On a personal note, I would like to offer a sincere apology to our membership for missing our last general member meeting. I had an emergency come up at the dreaded “day job,” that had to be handled. I look forward to seeing everyone at our next meeting in January.

I hope that each of us will continue to advocate the benefits of union musicianship to our audience/clients, as well as other non-union musicians, so that we can see our ranks grow and working conditions improve. I wish everyone a wonderful Holiday Season, and prosperous 2008.

Fraternally,

Thomas T. Kirk, Jr., - “Tom”

Secretary. Treasurer

The membership services catalog as well as contracts are available online at www.afm136.org.

To be considered for referrals when they come in you must make it known to the office. The referral list is also made available on the local website. Be sure your information posted is current.

International Musician it could be for one, or both, of the following reasons:

You may contact the International Musician directly at (212)-869-1330 ext. 243, or email im@afm.org.

“My friends, it is solidarity of Labor we want. We do not want to find fault with each other, but to solidify our forces and say to each other: We must be together, our masters are together and we must do the same thing”

Finances and Local 136

From the President’s Desk

AFM By-Law Changes