At its March 19, 2022, meeting, the NJEA Delegate Assembly (D.A.) will consider the adoption of a proposed amendment to the NJEA Bylaws that would freeze dues at the 2021-22 level for the 2022-23 school year for active professional and active supportive members.
The amendment would temporarily suspend the application of the dues increase formula for active professionals and active supportive members for a period of one year.
The amendment was proposed by the NJEA Executive Committee in recognition of the current and protracted economic impact of the COVID-19 pandemic affecting every household in some way and other financial hardships affecting many members.
Since March of 2020, the pandemic required NJEA to change how it conducted its business to protect the health and safety of members and staff. While continuing to provide a high level of services and resources to affiliates, leaders and members, the pandemic required the temporary adjustment or suspension of certain regular Association activities in ways that reduced costs.
In other ways, the pandemic created opportunities to dedicate Association resources to provide new services and increased support to NJEA leaders and members. The net budgetary effect of those changes over multiple budget years was a temporary reduction in overall spending. In addition, at fiscal year-end Aug. 31, 2021 and for a good period of time during the pandemic, the favorable investment market played a major part in creating a positive effect on NJEA’s financial reporting. These factors resulted in an increase in NJEA’s organizational net assets.
Since the dues level, upon resumption, will be calculated using the “frozen” dues level as a base, the Association’s anticipated revenues would be impacted not only during the one year period of the “freeze,” but each year thereafter. Even while considering that impact on the Association’s anticipated revenues and when planning for a full return to regular programs and services in the 2022-2023 fiscal year budget, based on information obtained from NJEA’s financial statements at Aug. 31, 2021 and its Business Division, NJEA governance believes that NJEA can provide those services and programs without increasing the current level of dues for one year. All NJEA members will share in the benefit of a one-year dues freeze.
Under the proposed amendment, active professionals and active supportive dues for the 2022-2023 fiscal year only would remain at the current (2021-2022) level. The normal formula would resume for the 2023-2024 fiscal year, but upon resumption, would be applied to the 2021-2022 level.
The amendment would take effect on Sept. 1, 2022. The proposed amendment is as follows:
…that the Bylaws be amended effective September 1, 2022, by adding the following new section to the end of Bylaw I, Dues:
(i) Temporary Dues Formula Suspension – Notwithstanding any other provision of these Bylaws to the contrary, the dues for active professional, active supportive, and retired members shall be maintained at 2021-2022 dues level for the 2022-2023 fiscal year only, and the dues amount for the 2023-2024 fiscal year shall be determined by applying the normal percent increase calculated in 2022-2023 to the base dues amount in effect for the 2021-2022 fiscal year, utilizing the formulas specified in Bylaw 1 (a), (b), and (e). This paragraph shall be deleted from the Bylaws on September 1, 2023.
It is anticipated that the March 19, 2022 D. A. meeting will be held at Doubletree Hotel and Conference Center in Somerset unless it is moved to a virtual format for health and safety reasons.