The NACo Board of Directors approved a $20 million operating budget, a strategic plan and legislative priorities for 2003 at its fall meeting in Dallas County, Dec. 12-14.
The budget includes spending increases of 7.2 percent, while revenues increase 4.3 percent. The budget includes a projection that NACo will end 2003 with an $800,000 surplus.
“This was an extremely productive meeting,” said NACo President Ken Mayfield at its conclusion. “The ideas and discussion on the budget, priorities and the strategic plan were excellent. With these in place, we will have a successful year.”
The key legislative priorities for next year are: collection of remote sales taxes, TEA-21 reauthorization, funding for election reform, funding for homeland security, health care legislation, and opposition to unfunded mandates and preemption. The board also adopted 34 other priority issues. (For a full list of all priorities, see page 7.)
The 2003 budget, which takes effect Jan. 1, projects a revenue increase of $850,000. Substantial increases are expected in building revenues (up $292,000), dues revenues (up $128,000) and NACo Financial Services profits (up $200,000). Expenditures increase by $1.3 million. The main sources of those increases are wages and benefits, $570,000; marketing fees, $480,000; and building and administration, $400,000. In addition, expenditures for NACo’s lobbying activities will increase by 6 percent.
“This is an excellent budget that takes into account the problems of the economy, while still recognizing the needs of our members,” said Executive Director Larry E. Naake. “We will maintain a high level of service to county governments through our advocacy, research, grants and communication efforts.”
The budget provides $400,000 for technology and capital improvements for 2003. These funds will be used to purchase computer hardware and software, a switch for the telephone system, furniture, and improvements to the database and the financial management systems.
No new staff positions are included in the budget. A 4 percent salary increase based on merit for existing staff was approved by the Board. NACo staff do not receive cost-of-living or position-step salary increases and received only a 2 percent increase in 2002.
The forecast for ending the 2002 budget year is good. NACo is expected to end the year with a $1.3 million surplus — $700,000 over budget. The primary sources of this additional revenue are savings in salaries and benefits, increased building income and greater income from the for-profit services.
NACo also will end 2002 with more members than any previous year. There are now 2,071 members out of 3,066 counties in the country. Forty-six counties did not renew their membership, giving NACo a 97.5 percent retention rate, which is among the highest for associations.
The membership goal for 2003 is 2,085. That goal is part of the 2003 strategic plan that was adopted by the board. The plan, which outlines the goals and objectives that the association will pursue for the year, is divided into five key areas: advocacy, membership, communications, products/services/resources and infrastructure/administration. Goals are set for each of the five areas then carried out by each department.
The advocacy goals will focus on the legislative priority issues. For communication, a re-design of the NACo Web site and County News will be completed.
Goals for the products and services strategy include: offering a new debt collection program for counties, adding new products under the cooperative purchasing program, and strengthening the e-government initiative that gives counties access to the Internet and enables them to develop their own Web sites.
NACo will pursue grants to assist counties in a number of areas: workforce development, access to health care, indoor air quality, water and wetlands protection, energy management, healthy families, early childhood development, and population growth issues.
The association also will continue the process of developing a national research center for county government and seek university or community college partners to provide training for rural county officials. Establishing a program that tracks grants for counties and assists with grant writing is also part of the plan.
