The Oklahoma Bar Journal May 2024

20 Years Later: Time for an OBA Dues Increase F rom T he P resident By Miles Pringle

I N MY JANUARY ARTICLE, I laid out three main goals for the year. One of them was to evaluate the financial future of the Oklahoma Bar Association and the appropriateness of a dues increase. The House of Delegates last voted to raise dues 20 years ago, in 2004, to the current $275 amount, which would equate to approximately $445 in 2023 and likely more today as inflation persists. In 2004, the OBA dues increased by $100, from $175 to $275. That 57% increase was the first increase in 15 years. Then-OBA President Harry Woods commented, “It is remarkable that the association has gone as long as it has without a dues increase.” At the time, the 57% increase was viewed as necessary to “maintain or modestly improve the level of programs and services.” I think the 2004 House of Delegates would be pleased with the results of their investment in the OBA. With

The Board of Governors was presented with four different dues increase scenarios: 1) $25, 2) $75, 3) $125 and 4) $175. To be blunt, the first two scenarios were not reasonable options. Cash flow projections for a $75 increase showed the OBA losing money ( i.e., drawing on its strategic reserve) every year. In the best projected year, 2025, the OBA was predicted to lose $218,534. There is no point in raising dues that do not put the OBA in a financially stable position. The board had a very robust discussion regarding a $125 increase as opposed to a $175 increase. A $125 increase puts the OBA in what I would categorize as a financially stable position through at least 2029 (barring unfore seen circumstances). The $175 increase would put the OBA in a positive position through 2031 and potentially allow for investments in big-ticket items. The first motion for the board to vote on was for a $175 increase, which failed by one vote. While I personally supported a $125 increase, there were many strong arguments that a $175 increase was the better and more prudent option. I voted for a $125 increase because it stabilizes the OBA’s financial position with the least amount of cost to lawyers in the medium term. Also, if there are big-ticket items in the next three to five years, we can discuss how to properly fund those investments at that time. Regardless, future Board of Governors members will need to be very mindful of the OBA’s finances. We have more members over the age of 80 than under the age of 30, which will cause increased pressure on the OBA. Additionally, while we hope that inflation continues to be controlled, there is no doubt

that investment, which has lasted 20 years, the OBA has been able to advance its technology and pro grams that improve the adminis tration of justice in this state, and the quality of services provided to attorneys has been greatly improved. Based on the information pro vided by the professionals on the OBA staff, the Board of Governors is making a recommendation to the House of Delegates that the OBA dues be raised by $125 (from $275 to $400). This 45% increase is a lesser percentage increase from 2004 and below the value of $275 in 2004. The OBA has been able to do more with less over the past several years, but the time has come when there are no practical efficiencies to be gained, and we jeopardize the mission of the OBA by not raising dues.

Miles Pringle is executive vice president and general counsel at The Bankers Bank in Oklahoma City. 405-848-8877 mpringle@tbb.bank

(continued on page 79)

4 | MAY 2024

THE OKLAHOMA BAR JOURNAL