SECRETARY-TREASURER’S DESK | MIKE LOPEZ

Building A Strong Financial Future

Leading up to the California Professional Firefighter’s 49th Biennial Convention, there was much thought and discussion amongst the Executive Board about our budget process, allocation, and need for an increase in revenue.

In the Spring of 2024, CPF local leaders from across the state gathered at the 1st and 2nd District Meetings in Glendale and the 3rd and 4th District Meetings in Sacramento. As Secretary-Treasurer of CPF, my goal for these meetings was to lead a discussion about the state of CPF’s financials with transparency. By explaining the historical per capita distribution and the budget line items impacting CPF the most, we educated our members so they could truly understand what was at stake.

As I am sure a lot of you have noticed with your own finances, the inflation coming out of the pandemic has been astronomical across the country. Many businesses and corporations are trying to recuperate their losses, which in turn, has impacted us at almost every level of operation.

When paired with the increased cost of our convention, this created an unavoidable situation for our finances.

Our brothers and sisters of Carlsbad Firefighters Association, Local 3730, indicated their desire to host the 2020 Convention during the 2018 Convention, because of the pandemic, it was held virtually. In 2022, there was a labor dispute at the host site, so in solidarity, the 2022 Convention was held in Oakland instead.

Costs rose greatly in the four years between when the convention in Carlsbad was originally supposed to be held and when it was held this Spring. The cost difference between the 2022 Convention and the 2024 Convention was about $200,000.

Operational Dues Increase

At the district meetings this Spring, I explained the budget deficits and stressed firmly to the Executive Board and local leaders that the businesses at CPF absorbed the costs of rising operational expenses without increasing costs to the membership. As a result, there had not been a per capita tax increase in ten years. The costs absorbed also included the additional employees added to the CPF to assist locals.

This was no longer sustainable, the CPF budget could not support any further operational growth without a per capita tax increase.

That is why at the 2024 CPF Convention, our members were presented with a General Operations Dues Increase Resolution, which initially proposed a $1.28 increase.

Going into convention, we did not use inflated rates to calculate the ask in the resolution. Ultimately, our members set the tone and determine what we can afford and what our future will look like.

The members decided to amend that amount to $0.50. In total, that is a monthly increase of $17,346 for a net annual increase of $208,150. Unfortunately, this equates to 40% of what the resolution asked for. That being said, I will make recommendations to the executive board to make ends meet.

Once our final convention costs come in and all the bills are paid, the CPF Finance Team will do an analysis of our mid-year budget to identify any shortfalls and determine solutions to address them. CPF will continue to work tirelessly on your behalf, within our means.

Convention Expense Fund Per Capita Increase

One of the largest expenses this year by far is the cost of the 2024 CPF Biennial Convention. Travel costs have increased exponentially in the last few years – fuel costs, hotel rates, food – and everything related to travel is more expensive nationwide.

Our Biennial Convention is the most important gathering of members that CPF hosts. It is the membership's opportunity to shape the future of our organization. To cover the increasing costs, the CPF Executive Board proposed a resolution to raise the Convention Expense Fund by $0.66. Of that, the members voted to increase the fund by $0.26, rounding the Per Capita Tax for convention expenses to $0.50, which will now bring in $108,000 annually for the Convention Expense Fund.

With the increased funding across the membership from the Per Capita Tax, increased registration fee, the introduction of the Convention Exhibit Center, and expanding advertising opportunities for vendors – we will be able to live within our means and will aim to not use CPF Reserve Funds for future convention costs.

CPF Reserve Funding Source

At Convention, the membership also voted to support a $0.10 increase for the CPF Reserve Fund, which will bring in $3,469 a month and $41,631 a year.

The money from this will be moved into a fund that will be invested to support our future as a union. Twenty-five years from now, CPF leadership will appreciate that the membership had the vision to put money aside for future planning, capital outlay projects, and other improvements to the CPF so we can better serve our members and ensure our strength for decades to come.

Political Action Modernization

The Ballot Issues PAC and Candidate PAC increased by a combined $2.00, which will bring in $832,600 annually. As stated previously, we haven’t had a Per Capita Tax increase in ten years, so this newly approved funding will have an extraordinary impact on amplifying the firefighter voice in the halls of power and CPF’s political influence at the State Capitol.

Future Personnel Growth Funding

Over the past several years, CPF’s personnel needs have grown to support the needs of our expanding membership. These costs were absorbed by the businesses housed at CPF through a service fee and are not sustainable for further growth. Our members voted to adopt a resolution to fund two additional employees that will lead to a per capita increase of $0.97 if, and only if, those additional employees are hired. I want to thank the membership for recognizing the needed growth in staffing to further our mission to support locals and our members.

California Firefighters Memorial

Lastly, I want to highlight that the members of CPF voted to support a funding source for the California Firefighters Memorial. The resolution was authored by our brothers and sisters at Hayward Fire Fighters, Local 1909, and resulted in a $0.10 per capita tax. The goal of the resolution was to demonstrate firefighters’ commitment to honoring our fallen through the Memorial’s expansion, and upkeep.

Reflecting on the Past, and Planning for the Future

For as long as I have been involved in this union, the 2024 CPF Convention was the most member-participatory convention that I have witnessed. I am humbled and appreciative of the support and consideration the members have for the vision of CPF.

I want to thank all CPF staff, past and present, for their hard work and dedication during this convention. The planning alone was well over a year into the making. Every member of our staff spent the last year working around the clock on writing resolutions, managing budgetary processes, negotiating costs, and ensuring that our members were able to gather and have a successful convention.

As the Secretary-Treasurer, it is my obligation to keep the membership informed on how the CPF collects and spends members’ money, and to follow the memberships' lead for the future of how their money is spent. This direction is determined at our Biennial Convention through the resolutions process, committee meetings, robust discussions, and voting – that is democracy at work.

It is my responsibility to put together a budget for the rest of the fiscal year, plan for next year, and identify costs for the future. I will present this to the President and introduce a plan to the Executive Board on how we will move your vision of the CPF forward through the resolutions passed at Convention over the next two years.