Frequently Asked Questions
Relocation to Knoxville
Table of Contents
What is the possibility that the financial
status will improve over the next two years to the extent
that relocation is inappropriate? Don't we need to see how
the leased space works?
We didn't think the financial status would improve enough
to be able to maintain all our programs and staff. We really
couldn't identify any programs or services that we thought
were expendable without damaging the association, members,
and the profession. We are working diligently to reduce costs
of those services by reconsidering how they are provided.
Top of Page
Is this decision premature?
We wanted to provide an outcome for the end of the two year
period so there wouldn't be the agony of the unknown haunting
the staff and members during that period. This way there
are two years to plan the transition and to get the new office
in place while we continue to work on revitalizing the association.
If we waited another three years to decide what we would
do, the data gathering we invested in at this time might
need to be redone and the time invested would probably have
to be expended again because the board members would have
changed completely by then.
Top of Page
Considering office space and staff, what
is the cost to lease in D.C. for a year?
After the closing on the sale of the building, we started
paying $24.50 per square foot. Staff salaries are 20-25%
higher in D.C. than in Knoxville.
Top of Page
Considering office space and staff, what
is the cost to lease in Knoxville for a year?
The data we gathered indicated the cost of space in the
central business district would average $13.00 per square
foot and in suburban areas $15.00 per square foot on average.
If we were to purchase a building in Knoxville that would
be large enough for us to grow some over the years, we could
buy it for about $500,000.
Top of Page
Would the $177,000 savings mentioned in
the letter balance the budget?
Not entirely since our deficit has been larger than this
for the past few years. We have made significant progress
in cutting expenses this year so that if we keep doing that
and realize the benefit of the move, we will be in fairly
good shape in about 5 years after we recoup the expense of
moving and retaining staff during the interim. At the same
time, we are initiating several new initiatives and continuing
to consider others that have potential to increase revenue
for the association, e.g., the new certification program,
a renegotiation of the contract with Sage for producing the
research journal. The convention is being redesigned to better
meet members' needs and to balance its budget including the
staff time it takes. We are launching a new development campaign
to raise funds to transfer our archives to Cornell University
and to get them processed and ready for researchers well
ahead of our centennial celebration in 2008-2009.
Top of Page
What was the recommendation of the building
committee regarding relocation?
The building committee recommended Knoxville as the top-rated
city based on the research that was done, but that we lease
in the D.C. area for three years. When the suggested modification
of that recommendation was discussed with the non-board members
during board deliberation, one said that moving to Knoxville
was her assumption of what would happen after the lease period.
Top of Page
What associations have recently moved out
of the D.C. area?
The College and University Professional Association for
Human Resources (CUPA-HR)moved from D.C. to Knoxville a year
ago. What were their reasons for moving? Cost of D.C. What
benefits/savings were realized? Greater than anticipated
savings on staff salaries (25% versus expected 20%), wonderful
work ethic of staff, better public policy service at lower
cost are some of the benefits.
Top of Page
What is considered a reasonable level of
airline service to Knoxville?
Knoxville has 6 daily direct flights to D.C. We were looking
for cities that were a hub of some size.
Top of Page
In today's environment of collaboration
and partnerships, how accessible will AAFCS be in working
with other associations if in another location?
In this time of electronic communication, we think we will
be able to collaborate and partner very well. Many associations
are located outside the D.C. area. We are now having board
members who belong to other associations represent AAFCS
when they attend the annual conventions of these other organizations.
We have been and will continue to build collaborative relationships
with appropriate organizations/associations.
Top of Page
If AAFCS is to maintain a national
presence, what additional costs would be incurred by staff
traveling between Knoxville and D.C.?
There are a number of possibilities for public policy work
and we haven't decided yet which would be best for AAFCS.
CUPA-HR has hired a law firm that has a government relations
subgroup that follows legislations and goes to hearings,
etc., and works long-distance with the staff in Knoxville.
The executive director goes to D.C. when needed. The expense
of this is significantly less than the expense of having
the headquarters in D.C.
Top of Page
If members are not willing to
raise dues, what services or programs would they be willing
to curtail or eliminate in order to keep AAFCS in the D.C.
area?
We don't know, but we have gotten some input and there certainly
isn't agreement. We will continue to seek member input on
many questions. We have had very active committees and other
units this year and several have cut their expenses by being
creative in considering how they do their work because they
realize that we must. We have resources from the sale of
the building now, but we won't have them for long if we don't
balance the budget.
Top of Page
|
