ALA Executive Board,
Fall 2003 Meeting
Huron Plaza Proceeds to Benefit Future Fund, Spectrum.
Sidebar: Allied Professional Association—Director Expected by January
At its spring meeting, held October 11–12 in Chicago, the ALA Executive Board had the happy task of allocating the $10.6 million the Association received from the refinancing and sale of its Huron Plaza headquarters building. With President Carla Hayden presiding, the board voted to place the bulk of the proceeds in the long-term-investment Future Fund, with $1 million going toward the Spectrum scholarship endowment for ethnic library-school students. James Rettig warned, however, that ALA’s tax liability on the proceeds was estimated at roughly half the total amount, leaving some $5.4 million for the portfolio (EBD #4.4).
In other welcome financial news, Associate Executive Director for Finance Gregory Calloway reported (EBD #14.2) that FY2003 revenues were some $300,000 higher than the estimates given at June’s joint ALA/Canadian Library Association Annual Conference in Toronto, where a shortfall of $3.3 million had been projected, mostly due to the SARS-related drop in conference attendance (AL, Aug, p. 79). He attributed much of the improvement to greater-than-expected on-site registration at the conference, presumably from Canadian walk-ups.
On top of what he called an “already aggressive” plan to reduce salary expenses by 6%, further savings of $200,000 were made by holding back 1% of staff members’ Association-wide incentive pay increases as well as all of the individual incentive increases intended as part of the new compensation plan implemented this year (AL, Nov. 2002, p. 8); the total savings from these measures comes to $682,000. Calloway said the salary savings would go toward the cost of completing the transition to the new compensation plan. A further savings of $424,000 came from cutbacks in travel.
Calloway also reported that election costs had gone over budget as a result of the transition to an electronic voting system, scheduled to be implemented in this year’s election, which involves outsourcing the compilation of the ballots. However, the savings in paper and postage is expected to help compensate. Additionally, he noted, the Association has already begun paying back loans from the Future Fund made to finance the suit against the Children’s Internet Protection Act, a year ahead of schedule.
Taking a look at long-term fiscal prudence, the board voted to authorize Executive Director Keith Michael Fiels to proceed with plans to purchase property in the District of Columbia for ALA’s Washington Office (EBD #4.4.1). Early investigation of Washington’s real estate market turned up a brownstone in the DuPont Circle neighborhood priced at $3.5 million that Fiels called representative of what’s available. Calloway said that buying the property would save the Association $3.3 million over 10 years compared to its current rental arrangement.
The challenge of SRI
Treasurer Teri Switzer led the board in a discussion of socially responsible investing (SRI) (EBD #4.2, 4.2.1, 4.3), which dominated much of the board’s previous meeting (AL, Aug., p. 83–84). She conveyed three options suggested by the board’s Finance and Audit Subcommittee: for ALA to establish its own institutional-type account that would screen for its value-based criteria of diversity, human rights, and environment; to reaffirm the board’s June decision not to adopt an SRI-based policy, but to implement the “challenge system” allowing members to challenge investment holdings; or to revise ALA’s value-based screens of diversity, human rights, and environment, which would increase the number of SRI mutual funds that meet the Association’s criteria.
Barbara Stripling reported that F&A investigated the use of screens to eliminate investments that violated ALA’s criteria. Even at using relatively moderate criteria, the screens have removed 16% to 86% of ALA’s portfolio; financial advisors state that losing more than 10% percent of a portfolio will result in a financial hit.
A lengthy discussion ensued that eventually came to focus on the challenge system. Under such a system, a list of ALA’s investments would be available to members, and criteria would be developed for such challenges. In the end the board voted to reaffirm its June decision not to implement an SRI-based investment policy, but to develop a challenge system that would also include assertive interaction with ALA’s portfolio managers about the Association’s values.
Plotting strategy
The board heard from Senior Associate Executive Director Mary Ghikas about the initial phase of development of ALA’s 2010 strategic plan (EBD #12.16). Ghikas described the various activities in store to collect data on what form the plan should take, including focus groups, surveys of members and nonmembers, and chapter forums.
The wide-ranging discussion that followed addressed the need for ALA to become more relevant to its constituencies who may now feel underserved, such as young librarians and retirees. Kent Oliver stressed the urgency of finding a way to change the dynamics of the Association, “because our membership is changing, and if we don’t change with it, we are going to have some real problems.”
Action roundup
The board also:
- Approved FY2004 budgetary ceilings proposed by F&A, including a total ALA budgetary ceiling of $49,919,564 (EBD #3.1).
- Heard Switzer pass along Senior Endowment Trustee Rick Schwieter-man’s report on the long-term investment fund (EBD #4.6). Schwieterman said the fund has performed well, especially in the second quarter, growing by $900,000 from the end of the calendar year through the end of ALA’s fiscal year in August.
- Heard a report from Executive Director Fiels on CIPA activities since the August 23 meeting of ALA leaders (AL, Oct., p. 6) (EBD #12.10). Fiels suggested that filtering legislation is moving to the state level, now that filtering advocates are realizing that CIPA contains provisions permitting the disabling of the programs. He added that ALA’s Washington Office is finalizing its compliance guidelines.
- Received an update from Washington Office Director Emily Sheketoff (EBD #12.5). Sheketoff said that a survey of ALA members found that their top Washington-
related concern was the USA Patriot Act, followed by LSTA and intellectual freedom/copyright.
- Got a brief progress report from Fiels on the electronic voting system, which is currently undergoing member testing with ALA’s Website Advisory Committee. In a nod to widespread discontent over ALA’s recent website redesign (AL, May, p. 8–9), Fiels stressed, "We are not rolling anything out without floating it by our web advisory group."
- Heard from Development Office Director Susan Roman about efforts under way to devise an ALA Development Plan (EBD #6.0). Roman’s office was preparing to meet with an invited group of ALA members, vendors, representatives from foundations, and others to gather information on why people should want to donate to the Association.
- Learned from Associate Executive Director for Communications and Marketing Gerald Hodges that the National Professional Group, which the Membership Committee had selected to offer a health-insurance plan to ALA members, had been bought by another company, and that its offerings had changed. At the Midwinter Meeting, the committee will be asked to approve a different program offered by Marsh Inc.
- Received implementation recommendations (EBD #8.0) from the third Congress on Professional Education (AL, Aug., p. 36–37), as well as a follow-up on COPE I recommendations (EBD #10.0).
- Reported out of closed session that a discussion of possible conflict-of-interest problems with ALA’s legal counsel, Jenner and Block, had found no conflict. “In fact,” Hayden stressed, “we reaffirmed our association with the firm.”
- Got a progress report from Office for Intellectual Freedom Director Judith Krug on the ALA privacy audit (EBD #12.14), which is now in the initial phase of data collection and inventory. Krug observed that “there’s a lot more information coming into ALA Headquarters than I think any of us had anticipated.”
- Heard a report (EBD #12.11) from Human Resources Director Dorothy Ragsdale and Office of Diversity Director Tracie Hall on the ALA Staff Diversity Action Plan, which aims to, among other things, “promote and sustain a harassment-free, barrier-free, open-communications work environment.”
- Received a report on the selection process for endowment trustees (EBD #12.13).
- Discussed campaign procedures and guidelines for candidates for ALA offices (EBD #12.12), focusing largely on the level of support the Association should provide to candidates. However, Michael Gorman observed that “This is probably not the year to change this decision,” considering that the board had just announced that the two contenders for the presidency in this year’s election would be he and Stripling—both members of the Executive Board.
Other board members present were Kathleen E. Bethel, Carol Brey-Casiano, Nancy Davenport, Maurice J. Freedman, Michael Golrick, James Rettig, and Patty Wong.
Allied Professional Association: Director Expected by January
Reconvening briefly as the board of the ALA/Allied Professional Association, the Executive Board heard a pair of reports and approved one action item.
In his quarterly update (APABD #12.0), Executive Director Keith Michael Fiels told the board that 40 applications had been submitted for the job of APA director. He hoped to have the position filled by the Midwinter Meeting in January (APABD #4.1).
Senior Associate Executive Director Mary Ghikas reported that a consultant had been hired to develop a marketing plan for the APA. A monthly electronic newsletter, which will replace Library Personnel News, is expected to debut in January.
Michael Gorman said he planned to recommend the dissolution of the ALA Pay Equity Committee, since it duplicates functions covered by the APA.
Finally, the board approved, pending review by ALA legal counsel, a memorandum of understanding (APABD #4.0) to codify and outline the relationship between ALA and the ALA/APA.
This report highlights items American Libraries considers to be of the most interest to the general membership of ALA. Official documentation (EBD# or APABD#) is available from Elizabeth Dreazen, Office of Governace.
—Gordon Flagg
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