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RELEASE: CRI Center for Economic Policy and Analysis

 

RE: Delaware AFSCME expenditures

 

DATE: July 23, 2010


By Federal law unions must file an annual report detailing their expenditures. The latest Form LM-2 filed by Delaware AFSCME Council 81 for FY-09 is engaging reading. Interesting highlights include the following:

 

  • In FY-09 AFSCME council 81’s direct spending was $1,385,472 from dues of $204 per annum collected from 6,800 members
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  • Between FY-08 and FY-09 (the “great” recession) AFSCME’s membership rose 1% and its direct spending rose almost 17%

 

  • 43% of AFSCME’s spending goes to overhead as opposed to representation of dues paying members…this is high compared to the typical nonprofit
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  • The executive director receives a salary of $112,028 plus benefits plus an allowance of $12,000. This total package equals 11% of AFSCME’s spending. The salary increased 4.4% from FY-08

 

  • Excluding the executive director, union officers received $24,000 of allowances
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  • AFSCME earned about 3% throughout the year on its cash balances
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  • AFSCME directly spent almost $64,000 on hotels and catering…this is in addition to reimbursed employee expenses
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  • The law firm of Perry Goldlust Esq. was paid almost $119,000 for legal services during the fiscal yearmore than 8% of total spending
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  • Blue Hen Promotions received around $13,000 for convention services. Blue Hen Promotions president is Sally Oberle, wife of state representative William Oberle Jr.

 

  • Benefits to AFSCME average 27% of wages, a proportion similar to the private sector and below that for Delaware state employees

 

The data on the Form LM-2 is not exact. Unions may shift expenditures arbitrary among report categories and union PAC spending is not represented. Nevertheless, some interesting insights can be gained. CRI encourages Delaware union members to go to the U.S. Department of Labor’s website (http://www.dol.gov/olms/regs/compliance/rrlo/lmrda.htm) and take a look at how their dues are being spent by their particular local.

 

Dr. John E. Stapleford, Director

Center for Economic Policy and Analysis