MLA Planning

Dues Increase Proposal

Dear Colleagues:

At the February 2004 MLA Board of Directors meeting, the board voted to recommend a dues increase to members. The dues increase would be phased in over 2005 and 2006.

Dues revenue provides the financial fuel needed by MLA to power members and the profession forward to overcome challenges and pursue opportunities. Dues enable MLA to provide desired programs and services and to advocate on behalf of the profession. Membership support in the form of dues also allows MLA to respond quickly and effectively to new issues that affect you, our members, and your libraries.

In December 2003, the board approved MLA’s “2004 Business Plan and Budget,” which provides funding for ambitious new strategies. It is a lean budget with a planned deficit that relies on cost cutting and increasing revenues from non-dues sources such as advertising, annual meeting exhibit sales, and sales of publications. The 2004 budget will put MLA in deficit for the first time since 2000. MLA ended 2003 close to budget with net revenue of about $16,000. While welcome, this amount is not sufficient to fund new programs or erase the planned 2004 deficit.

The 2004 deficit will be funded by MLA’s reserve funds. MLA’s finance policy calls for a balanced budget, but allows a deficit as a short-term strategy to develop programs and services.

The deficit was approved to fund new strategies such as a consultant to work with the board, headquarters, and the Task Force on the Information Specialist in Context to develop new roles for medical librarians. However, MLA cannot continue to operate this way and remain fiscally responsible.

For many years, MLA dues have only covered 25% to 26% of the costs of providing member services and pursuing new initiatives. In 2000 when dues were last increased, MLA collected $680,669 in dues and covered other expenses from revenues from fee-based services. Now dues account for only 22% of MLA’s revenue, and the total dues collected has decreased to $615,820. This means that 78% of MLA’s operating budget and initiatives must be funded through other fee-for-service revenues. Without additional dues revenues, MLA will need to curtail important membership initiatives and may not be able to respond to new issues and opportunities without cutting existing programs. A graph comparing non-dues and dues revenues is shown in the figure.

The last dues increase made the following programs and services possible:

• Enhancements to MLANET, including the online directory, electronic versions of the Journal of Medical Library Association and the MLA News, an enhanced search engine, purchase of a new server to host section and chapter Websites, online job ads, annual meeting abstracts and program content, and other registration and renewal services.
• Benchmarking Network to help our members learn more about benchmarking, compare data, establish best practices, and identify and work with a benchmarking partner.
• Mentoring database and brochure development to enable experienced librarians to foster the next generation of leaders.
• Advocacy for the profession through increased collaboration with other library associations and organizations on issues such as open access, fair use, and electronic publishing.
• Development of the Advocacy Toolbox and development of other member advocacy tools.
• Expansion of the Educational Clearinghouse to provide information about MLA-approved continuing education (CE) opportunities, including Web-based courses.

A dues increase now will help MLA move toward:

• Increased efforts to recruit new members into the profession and the association.
• Conversion of classroom CE courses into Web-based learning.
• Development of leadership training opportunities.
• Expansion of MLANET features and functions including online voting and free Website hosting for sections.
• Provision of quality assessment tools for hospital libraries through expansion of the Benchmarking Network activities and support of the LibQUAL+ initiative through ARL.

* Dues increase about 10% in 2005 and 2006, rounded up to the nearest $5. † The annual salary amount to qualify for reduced dues will go up to $30,000, which will enable more members to qualify.

MLA relies on the participation and support of its members. Our collective voice is MLA, and together we are more powerful than any of us could be alone. MLA is working hard to meet current challenges and identify new opportunities for the profession and you. We need all health information professionals to be MLA members. Toward this goal, your colleagues on the Membership Committee have designed a range of membership options that seeks to accommodate all budgets. The options are listed in the table above.

Members are invited to discuss the dues proposal on an MLANET forum beginning March 15, 2004. Also, the proposal will be the subject of an MLA ’04 Open Forum in Washington, DC, on Monday, May 24, 2004, at 2:30 p.m. We will conclude the discussion and vote at the business meeting on Tuesday, May 25, 2004, at 9:00 a.m.

We hope you will participate in these forums and express your views on the value of our collective voice in MLA.

Sincerely,

Patricia L. Thibodeau, AHIP, MLA President

Neil Rambo, MLA Treasurer

Declining dues revenues pose a challenge to balance the budget while supporting current activities and funding new objectives. In 1997 and 2000, dues provided 26% of total revenues. By 2004, the percentage had dropped to 22%, which means 78% of all revenues are earned from non-dues sources such as advertising, exhibit sales, and mailing list rentals. Non-dues revenues go up and down according to market forces. Each change has an impact on the bottom line and MLA’s ability to fund essential ongoing and new programs. The figure shows how the percentage of dues revenues versus non-dues revenue has declined since 2000, increasing MLA’s reliance on more volatile non-dues sources of revenue.