Secretary-Treasurer’s Report

 

I've served as your Secretary-Treasurer for over a year now. Despite challenges our Local's finances are in good shape. This was not always the case.

           

When the current officers took office at the end of November of 2000 our Local was approximately $70,000 in debt. The full picture of financial neglect became clear only when we recently entered into negotiations with the IRS over back payroll taxes which were not paid by the former administration.

           

The Local is required to file payroll taxes for our office manager every three months. The former administration failed to do this for various quarters ranging from 1996 to 2000. For example, for the third quarter of 1996 we owed $2,322.10. But since it wasn't paid, with interest and penalties we now owe $5,374.64 for that quarter alone. The total bill is approximately $47,000. State and City payroll taxes were also neglected. We were able to get these reduced to several thousand and have paid them off.

           

In addition to the unpaid taxes, another approximately $28,000 in bills was left for the Local. All the records are open to anyone who wishes to verify these figures.

           

While the former officers were not paying the taxes, they continued to pay themselves approximately $28,000 per year in officer allowances. Apparently this does not come up to the level of crime, but it gives the former top officers zero credibility in my eyes.

           

As many know, the current officers promised during the 2000 union election that we would eliminate officer allowances. We did that on day one. That helped us stabilize the Local's finances, and we are paying the current bills on time. We have paid off about $5,000 in bills, replaced our old computer, printer and copying machine. And our current taxes and bills are paid on time.

           

In September 2001, after 25 years as the Local's office manager, Ms. Kelley, retired. She has been replaced by Ms. Felicia Hunter, who works 25 hours per week. Ms. Kelley is running out her sick and vacation time out till April 19, 2002. So we are temporarily paying for two employees. After April, our labor and benefit costs for our union manager will be cut by more than one half.

           

Union dues are collected by management and sent to Michigan AFSCME Council 25. They take about 60%. Another 20% goes to AFSCME International. Local 207 ends up with about 20% -- last year that equaled about $124,000.

           

But other costs are rising, and our income is being reduced. This year the International has increased its take, so the Local will get about $1,000 less per month. This year we'll get around $85,000. In the last few months Council 25 has raised the office rent by 8%. In June we must start setting aside about 10% of our money to pay off the IRS bill.

           

All of this means we are forced to make budget cuts. In addition to the fact that officers get no allowances, we are eliminating mileage allowances, which were already set far below what the IRS allows. This will save us approximately $3,100 per year. We are eliminating steward allowances, at a savings of approximately $11,000 per year. Funeral flowers will be eliminated, at a savings of $2,200 per year. And finally, General Unit Chair and Grievance Investigator Bruce Conway is donating food for the membership meetings equal to his union cell phone bills, which saves about another $1,000 a year.

           

Our proposed budget is designed to maintain service, keep the officers in touch with the members, and allow Local 207 to expand it's political influence and leadership within AFSCME and generally.

           

The Secretary-Treasurer is supposed to look after the money so the Local can direct its attention to what's most important – a good contract and job security. While we wage that fight, you can be sure that the finances are being handled responsibly, and openly and honestly.

           

            In Solidarity,

            Michael Mulholland, Secretary-Treasurer,

            AFSCME Local 207