National & Local Council Fee Update
Youth fee assistance available
Fee chart at bsa-la.org/membership
Over the last several months we have seen an amazing amount of adaptation and creativity around delivering virtual Scouting programming to our youth and families. It has been humbling to see the passion and energy demonstrated by our Scouting leaders, families, and Scouts. While the Shelter in Place orders and changes to our lives have sparked positive creativity, they have also significantly challenged the financial health of our Council. We know this document is lengthy, but we believe transparency to our volunteers, families, and stakeholders is critical to ensure the success and health of local Scouting for years to come.
Currently the WLACC is facing a projected $2,000,000 operating deficit for 2020. Several factors have contributed to this projection and are laid out below for your knowledge.
■ 2020 summer camp operations at all camps have been significantly reduced if not eliminated, decreasing our net revenues from camp operations by approximately $1,200,000.
■ We have approximately $800,000 in fixed costs including rent, utilities, staff, and maintenance that cannot be eliminated despite our decreased operations.
■ Several Special Events (Fundraising Events/Galas) planned for 2020 have been postponed which will result in a reduction in revenue of approximately $200,000.
■ The projected operating deficit assumes a $500,000 savings resulting from downsizing and salary reductions (Labor is our largest single variable cost).
■ The National Council has changed how employee related benefits are billed to local councils, moving from a pay in arrears to pre-pay program. This means our council will have to pay four months of employee benefits in a two month time period as we transition to this new format.
■ Pension administration costs charged to our local council by the National Council will increase from 7.75% to 12% of payroll beginning January 1, 2021.
■ Our property insurance costs are projected to double.
■ California minimum wage laws continue to increase labor cost by roughly 8-10% each year.
■ The Chapter 11 National Bankruptcy Reorganization of the National Council will potentially require some type of financial contribution from each local council. At this time, we cannot estimate the amount of said contribution.
Given the current environment and the multitude of challenges we are facing we unfortunately had no choice but to increase our annual program and insurance fees. Beginning January 1, 2021 we are increasing our local council program and insurance fees from $23 to $60. At the same time, we will be eliminating the local council adult program fee of $9.
In order to keep the 2021 fee increase in context, it is important to remember that in 2019 WLACC announced a $50 program fee per youth member beginning January 1, 2020. Shortly after our local council announcement the National Council instituted a fee increase of $27.00 per youth member. To support our units, families, and Scouts WLACC subsidized the entire National fee increase, thereby reducing our local council program fee to $23. Additionally, WLACC committed to no longer conduct unit level Friends of Scouting presentations beginning in 2020.
The info-graphic above is intended to help explain the already announced National fee increase taking place August 1, 2020 and our local council fee increase taking place January 1, 2020. Should you have any question please do not hesitate in reaching out to your local District staff professional.
