Bar will evaluate investments

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Heading into the new year, the State Bar of Wisconsin is looking at its bottom line, especially the investment side, which has fallen well short of budget projections.

Finance Committee Chairman William J. Domina said through Oct. 31, returns on intermediate and long-term accounts have decreased 1.9 percent and 16.5 percent, respectively.

“We actually believe we have some positive investment areas, compared to other businesses,” Domina, Milwaukee County corporation counsel, said, during a presentation to the Board of Governors last month. “But instead of a $123,000 gain, we’re at a $231,000 loss for a total variance in the budget of $354,000.”

Given that future projections are not encouraging, Domina said that bar leaders may look to adjust spending to help compensate for the market losses.

What changes will be made is unknown at this point, said committee member Dean R. Dietrich, but discussions among bar leaders are ongoing.

Dietrich, of Ruder Ware LLSC in Wausau, added that no action has been taken to date, but the topic will likely be addressed in detail at the next Finance Committee meeting on Jan. 30.

Domina said State Bar Executive Director George Brown and Assistant Executive Director Linda Tanner have had an initial “brainstorming” session to discuss areas where the organization may be able to hold expenses.

“That’s been an area we’re watching very closely,” Domina said at the meeting. “I’ve talked with Linda and the Finance Committee about what types of corrective actions to budget, if any need to be taken as we proceed through the year.”

Domina, who could not be reached for additional comment, did not elaborate at the meeting about what potential steps may be taken to compensate for the sluggish investments, but said their impact on the overall budget is minimal at this point.

Total revenues for the fiscal year 2009, which ends on July 1, are about $259,000 behind budget projections. Through Oct. 31, actual revenues are approximately $3.1 million, compared to a budgeted amount of almost $3.4 million.

While investments have accounted for the largest swing in revenue, Domina also noted that bar book sales are slower than in past years.

“That may be an indication of folks tightening their own budgets and beginning to slow down what is a traditional area of support for the bar,” Domina said.