Earlier this month, the Executive Committee adopted the Association's budget for FY 2002 (July 1, 2001 - June 30, 2002), and amended Executive Committee Regulation 10.1 to establish the membership dues for the Calendar Year 2002. The Executive Committee concluded that dues for Calendar Year 2002 should be increased by 3.5%. The actual dollar amount of the increase ranges from $163 to $542, depending on student body size. Member schools will be sent invoices in December.

Executive Committee Regulation 10.1 was revised to read as follows:

10.1 Annual Dues. For the calendar year 2001 2002, the dues shall be $4,650 $4,813 for a school whose enrollment does not exceed 250 students; $6,968 $7,212 for a school whose enrollment exceeds 250 students but does not exceed 500 students; $9,296 $9,621 for a school whose enrollment exceeds 500 students but does not exceed 800 students; $11,618 $12,025 for a school whose enrollment exceeds 800 students but does not exceed 1100 students; $13,941 $14,429 for a school whose enrollment exceeds 1100 students but does not exceed 1400 students; $16,264 $16,833 for a school whose enrollment exceeds 1400 students but does not exceed 1700 students; and $18,592 $19,242 for a school whose enrollment exceeds 1700 students.

In accordance with Bylaw Section 5-4, unless objection is received from at least ten member schools within 60 days of mailing a copy of this regulation, Executive Committee Regulation 10.1, as amended, will continue in effect.

Income and Expenditure Summary. Attached as Appendix A is a summary of income and expenditure for FY 1998-99, FY 1999-00, estimated income and expenditures for FY 2000-01 (based on projections from actual expenditures through 3/31/01), and the operating budget for FY 2001-02.

The budget adopted by the Executive Committee for Fiscal Year 2001-02 contemplates income of $3,920,625 and expenditures of $4,091,200. We will transfer $170,575 from reserves to cover the difference; the Association's reserves are still expected to be within the targeted range of 65 - 90% of budgeted operating expenses.

Financial Statements. Attached as Appendix B is the AALS auditor's financial statements for FY 1999-2000.

Comment: As you know, the Association of American Law Schools is the learned society for law faculty and provides a number of services to its member schools and their faculty. These services include publications such as the Directory of Law Teachers, newsletters for both the national office and the 80 sections of the AALS; an annual Faculty Appointments Register and Faculty Recruitment Conference; and representation of legal education to the larger world of higher education, the government and the general public.

In the past two years, the Association has dramatically expanded the scope of many of those services. The expanded services include publishing the Faculty Appointment Register online in searchable fields; establishing and upgrading an Association website as well as numerous listservs and discussion groups, serving an increasing number of sections. We have also recently acquired a new, sophisticated "Association Management Software" package which should enable us to offer new services, such as online registration for programs. Most of the cost of these new services is being funded through spending a significant part of the Association's reserves, with a small portion being funded through this dues increase.

Enclosures: [not included on website]
Appendix A: Income and Expenditure Summary
Appendix B: AALS auditor's financial statements for FY 1999-00

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Executive Committee
Audit Committee