Another year has gone by and it was a tough one at that. We had a loss of $180,000 during 2009.

The economy was the primary cause of the reduction in income of over $900,000 from 2008. Expenses were controlled as well as could be expected. The 2009 expenses were $270,000 less than 2008 due to cost cutting measures.

There is hope that 2010 will see a turnaround. However we have projected a very tight budget for 2010 with a loss of almost $300,000. I have worked very closely on the 2010 budget with our new officers and we have painstakingly gone over the 2010 budget in great detail. The income budgeted for 2010 reflects the trends that were experienced during 2009; the 2010 income has started off fairly well, but it still remains to be seen how the economy is recovering and how our economy in the music industry responds.

We also had to exert further control over expenses as well. Salaries had to be constrained as well as benefits; these expenses make up a significant part of our budget. We are in the midst of a major computer upgrade which we are committed to. While this will be completed this year, this accounts for a portion of the budgeted loss as well. We hope to install all modules by the end of 2010.

We have also implemented an updated investment policy which management feels is prudent. With an investment pool of almost $4 million dollars, we should do much better in returns on our investments in 2010 than the past few years.

Now that we are four months into 2010, there is room for optimism. The income numbers have been better than expected and we are containing our costs. So far there is optimism that the economy is getting better. Hopefully this will result in the bottom line being favorable to budget at the end of 2010.

The last four years have resulted in an overall surplus to the Local 802 organization. We still have $7 million in reserves and are still very strong. As the economy recovers, so will Local 802 and the optimism for a good year.