Monday, June 21, 2010

Board of Governors Adopts Budget; Includes BASICS Funding For One Year

The Board of Governors of the State Bar of Georgia adopted a budget for 2010-2011 after a contentious debate over whether to include a $140,000 appropriation for the BASICS program. Other highlights of the Saturday June 19 meeting included a decision to retire the debt on the State Bar's headquarters building in downtown Atlanta, the election of executive committee members, and the setting of a schedule for consideration of amendments to the Rules of Professional Conduct.


BASICS Triggers Budget Debate


BASICS--which stands for Bar Association Support to Improve Correctional Services--is a30-hour course of instruction for soon-to-be released prison inmates that provides instruction, guidance and employability counseling to help them transition back into society and thus reduce recidivism.

According to the State Bar's website: "BASICS Mission is to aid and steer inmates in the direction of self-rehabilitation. During the classes, we assist with developing career, educational and/or work plans, preparing resumes, setting goals, and teaching interviewing techniques. Upon release, we assist with job research, applying for colleges or vocational schools, completing or changing personal action plans, as well as developing financial plans. This decreases the likelihood that these individuals will return to jail."

Seth Kirschenbaum, the chair of the State Bar's BASICS Committee, explained that the 35-year-old program has been funded in the past by the Georgia Bar Foundation. However, he said those funds are not available this year due to the economic crisis. If the State Bar did not provide funding this year, Kirschenbaum said it would be the death knell of the BASICS program.


Kirschenbaum's remarks came in response to concerns raised by R. Chris Phelps, the chair of the State Bar's Finance Committee. Phelps said that while he is not opposed to the BASICS program, he was concerned that it was not within the scope of Keller v. State Bar of California, 496 U.S. 1 (1990). The fact that there is sufficient money in the bar's coffers to fund the program is not a sufficient reason to do so, Phelps added.


Paula Frederick, the State Bar's general counsel, explained that in Keller, the Supreme Court held that members of a mandatory bar cannot be forced to pay through their membership dues for any bar activities they deem to be political or ideological. Under Keller, the use of a bar's compulsory dues to fund political and ideological activities violates the First Amendment if the activities are not related to regulating the profession or improving the quality of legal services.


Charles "Buck" Ruffin, the treasurer of the State Bar, said the Bar's executive committee discussed giving BASICS funding for one-year to give it time to become more entrepreneurial in its fund raising so that it can be self sufficient.


J. Alvin Leaphart opined that the state Department of Corrections should pay for the program and also expressed Keller concerns.


Ultimately, after a bit of parliamentary quibbling, the Board voted to adopt a budget that includes funding for BASICS for one year, but no more. This action occurred first by voice vote, but after a request for a show of hands, the final tally was 92 in favor of funding and 22 opposed.


Probably of greater interest to most State Bar members is this piece of news about the budget: It does NOT contain a dues increase.


Other Action


In other action, the Board voted to retire the debt on the State Bar headquarters building. The original amount of the loan was for $7.2 million at an interest rate of 5.2 percent. The payoff amount was $4,495,000, which included a penalty of about $300,000 for early termination. Given that the weighted average return on current investments is only about 1.2 percent, early retirement of a 5 percent loan was determined to be financially prudent.


Two members of the Executive Committee, Phyllis Holmen and Harvey Weitz, were re-elected to their positions. Patrise Perkins-Hooker was elected to the Executive Committee post previously held by Charles Ruffin.


The Board set the following schedule for consideration of proposed amendments to the Rules of Professional Conduct:


1) Suggested wording changes must be made in writing and received by the State Bar on or before Tuesday July 20, 2010, for inclusion in the Board's agenda book.


2) Brief discussion of the proposed amendments and any wording changes will occur during the Board's Summer Meeting on Thursday August 12, 2010.


3) Final suggested wording changes must be in writing and must be received by the State Bar on or before Tuesday September 21, 2010, for inclusion in the Board's agenda book.


4) Action will be taken on Saturday, October 16, 2010, at which time no other wording changes will be in order.


The text of the proposed amendments and an executive summary can be found on the State Bar's website.


http://www.gabar.org/news/proposed_amendments_to_the_georgia_rules_of_professional_conduct/

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