SPJ Budget Deficit Raises Concerns

"We on the national board are asking some tough questions about line items in the budget that were more than 100 percent overspent," said Region IV Director Bruce Cadwallader, a reporter for the Columbus (OH) Dispatch. "Some couldn’t be helped, but we can control things like meals, entertainment and travel for staff members."

SPJ Executive Director James Gray said most budget problems can be attributed to uncontrollable or unexpected expenses.

The organization faced increases in utility rates and postage costs, with less revenue from the stock market declines and a fall-off in membership.

Despite the over-budget expenditures, Gray said the financial situation is not as grim as it seems.

"There is definitely a problem, but the loss we had is largely a paper loss, not an actual loss," he said. "The total deficit number incorporates paper expenses such as depreciation."

Gray said he has several plans to correct the financial problems in the coming year. He has asked board member to be more involved in member recruiting and retention efforts.

Gray is also considering charging rent for space being leased in the headquarters building by other organizations. He also said the society will be working to limit expenses.

Cadwallader agreed with the strategies. "There are other ways to raise revenue," he said, citing merchandising and membership drives as examples. "And we need to tighten out belts at headquarters."