USDF Proposed Budget - Fiscal Year 2010 – Overview
November 10, 2008
The USDF proposed fiscal year (FY) 2010 budget, which spans April 1, 2009 – March
31, 2010, has been posted for review. It will be discussed at the USDF annual
convention in Denver at the open Budget Meeting for Council/Committee Chairs on
Wednesday, December 3, from 8:30 to 9:30 a.m. The budget will be presented to the
Board of Governors (BOG) for final approval on December 5. The Executive Board has
approved the proposed budget along with the associated budget balancing measures
outlined below. USDF policy requires the Executive Board to present a balanced budget
to the BOG.
Several factors made balancing this budget particularly challenging. The downturn in the
economy has had, and is forecasted to continue to have, a negative impact on
membership numbers and revenue. All indications are that advertising sales in the
USDF Connection will decline over the next 18 months as advertisers tighten their belts.
Although USDF currently has commitments for record revenue in sponsorships, we are
not optimistic that significant growth opportunities will be available. Attendance at
USDF educational events is predicted to decline as people become more budget minded.
USDF has relied on investment income to subsidize the bottom line. In this regard, we
believe it is prudent to take a conservative outlook regarding income contributions from
the investment portfolio.
At the same time that some of our revenue sources are declining, inflation has caused our
costs to rise. In some areas, these increases have been significant over the past few
years. We anticipate that they will continue to increase at a rate higher than our current
revenue stream.
To balance the preliminary budget, the following measures were taken, both on the
expense and revenue side;
First, the staff proposed to the Executive Board cost cuts of $237,586. These included a
reduction in staff administration costs of $111, 394, and a trimming of program and
service costs of $126,192. Some of these expense reductions were in staff travel,
Executive Board meetings and travel, USDF Regional Education and Team Competition
Grants, reduction in FEI Level Trainers conferences from two to one, reduction in FEI
Jr/YR Clinics from nine to five, reduction in print materials and marketing projects, and
the elimination of the Intercollegiate/ Interscholastic Committee and associated programs,
and the High School Dressage Club Pin Program.
Despite these cost cuts, the budget still showed a large deficit. We determined that a
combination of a general dues increase and a fee structure increase would be necessary.
The last dues increase was approved at the 2002 annual convention and implemented on
December 1, 2003. Some of USDF’s dues have not changed since 1997. The proposed
dues increase is for the 2010 membership year, which begins on December 1, 2009. GM
and PM dues will have been unchanged for six years when the new dues would go into
effect. The approach to the dues increase was to spread the burden equitably over all
member categories. (Refer to attached proposed dues increases chart)
The proposed dues increase, along with the cost cuts, still did not balance the budget.
The fee structure was reviewed and adjusted to reflect an equitable fee for service
approach. New fees were introduced, and existing fees were increased. Most of USDF’s
fees have not been raised for many years, some as far back as 1994. (Refer to attached
proposed fees increases chart)
The combination of all these measures results in a balanced budget for FY 2010. We
believe that fiscally responsible cost-cutting measures have been taken, in addition to the
efficient management of USDF operations already in place. Overall, the proposed
budget growth is about 3%, the smallest percentage increase in USDF recorded history.
The budgeted employee headcount will have been decreased each year over the past three
budget cycles. Furthermore, for the next 18 months, USDF does not plan to introduce
any significant new programs.
We are looking forward to a productive discussion on the USDF proposed FY 2010
budget at the annual convention.
Proposed Dues Increases, effective 12/1/2009:
Member Type Current Dues Last Increase New Dues
Participating $ 62 12/1/2003 $ 85
Youth $ 35 12/1/2004 $ 60
GM $ 17 12/1/2003 $ 23
GM Family $ 8 12/1/2006 $ 11
Business $ 175 1999 $ 200
5 Year $ 250 1997 $ 375
Life $ 1,000 1997 $ 2,000
Non member $ 20 10/1/2007 $ 30
Proposed Fee Increases:
USDF Fees For Service - Increases Current Fee New Fee
Last
Increase Effective Date
Competition Related Fees
NAJYRC Declarations $ 50 $ 75 2003 6/1/2009
NAJYRC Late Declarations $ 150 $ 200 2004 6/1/2009
All Breeds Declaration Fee/Change Fee $ - $ 25 NEW 10/1/2009
USDF Horse Performance Certificates $ 25 $ 35 1994 10/1/2009
Rider Awards Processing Fee $ - $ 35 NEW 10/1/2009
Processing Fee - Pas De Deux Awards $ - $ 35 NEW 10/1/2009
Regional Championship Qualified Ride Fee $ 10 $ 12 1998 10/1/2009
Allocate $2 increase to administration
Horse Recordings
Life Horse Recording $ 85 $ 100 2007 10/1/2009
Horse Identification (HID) $ 20 $ 35 2002 10/1/2009
HID Transfers and Name Changes $ 10 $ 25 2002 10/1/2009
Instructor Certification
Associate Instructor Application Fee $ 25 $ 50 2004 4/1/2009
Certified Instructor Annual Fee $ 40 $ 60 2004 4/1/2009
Workshop Recognition Fee $ 65 $ 75 2000 4/1/2009
Testing Fee T-2 $ 600 $ 700 2006 4/1/2009
Testing Fee 3-4 $ 500 $ 600 2006 4/1/2009
University
Accreditation Fee (30 days) $ 25 $ 35 1995 4/1/2009
Late Accreditation Fee $ 50 $ 75 1996 4/1/2009
Judges and L Programs
Annual Listing Fee for L Graduates $ - $ 25 NEW 4/1/2009
CE Program Application Fee $ 25 $ 45 2005 4/1/2009