ATA Board Approves $54.4 Million 'Investment' Budget

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SAN FRANCISCO — The board of directors of American Trucking Associations last week approved a $54.4 million budget for 1999 that includes a $2.9 million operating deficit to help pay for a 25% reduction in dues.

The budget, which the board approved during the organization’s annual winter leadership meeting, includes a 17% spending increase for advocacy programs and 24% more for information technology.

“This is an investment budget that reallocates resources to our core functions of advocacy,” said ATA President Walter B. McCormick Jr.

This is the first budget prepared since ATA began its restructuring last year. McCormick said the spending levels reflect the desire of members to have “best in class” in legislative, regulatory, media and legal advocacy as well as the leading source of trucking information.

ATA President Walter B. McCormick Jr. (File Photo)

ATA also plans to run operating deficits in the following two years as it improves its information and technology systems. The deficits, as with past budgets, will be made up by using revenue from investments that are part of funding reserves.

The budget projects dues will make up 32% of revenue, with the remainder garnered through ATA business activities, including meetings and its TT Publishing group.

McCormick said he hopes the 25% reduction in combined dues will persuade existing ATA members to stay and will encourage new members to join.

In December, dues invoices totaling $20.4 million were mailed. However, ATA anticipates receiving only $16.9 million in fees from current members and $200,000 from new members, said Dave Barefoot, chief financial officer.

Though the dues estimate leans toward the conservative side, he said it was difficult to determine just how many members would be retained and recruited.

ATA projects a 94% renewal rate for the current roster, including all 100 of its largest members.

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