Treasurer's Department

Straight talk clarifies financial picture My predecessor, close friend, confidant and immediate past national treasurer, P/V/C John Alter, SN, told me I would not win any popularity contests as USPS' fiscal watchdog. However, I'm honored to follow in the footsteps of past treasurers and look forward to the challenges ahead.

Believe me when I say that USPS now faces financial challenges like never before. Fortunately, the national Bridge, under the leadership of C/C Ernie Marshburn, SN, and the Operating Committee understand USPS' financial state of affairs and are up to the task ahead.

Sometimes watchdogs bark in an attempt to communicate. Although nobody likes a persistent barker, repeatedly communicating our financial situation to members educates them by clarifying cost-cutting and revenue-increasing initiatives and magnifying those areas in need of change. We must bark a little and stop walking on eggshells every time our financial woes are mentioned. We must simply tell it like it is.

Recently, I overheard a conversation about the financial demise of USPS, so let me set the record straight. We all know that many important elements propel the USPS engine, each of which are required for smooth and effective operation. On the other hand, we also know that dollars fuel the organizational engine. As USPS' fuel tank moved toward empty, it became necessary to implement strategies to conserve fuel and restore the resources depleted during our deficit years.

Conservation began with the operating budget. For several years, USPS has been operating with deficit spending. Operating within our budget became a real conundrum. In recent years, revenues fell short of budget expectations, and even though we cut some expenses, our fixed expenses continued to rise.

Knowing that wishful thinking and optimistic assumptions would not fix this quagmire, we implemented a series of strategic, carefully considered, yet significant expense cuts. Although emotionally challenging and organizationally difficult, these decisions have laid a foundation for a sound financial strategy for continued USPS operations.

As I mentioned during the New York Governing Board meeting, the USPS Budget Committee and national leadership have done yeoman's work controlling costs organization-wide. In addition, our headquarters and THE ENSIGN staffs have substantially reduced their operating expenditures.

All in all, the Operating Committee had to reduce the 2006 operating budget by a significant amount to offset a projected six-figure deficit. Although 2006 revenues will be lower than expected, we were fortunate to receive many generous contributions from life members and Century Fund donors earlier in the year.

With that said, we're currently on target for a balanced operating budget. However, there are no silver bullets. Everyone has had to make serious financial sacrifices.

We must keep in mind that these challenges remain, and we must continue to show fiscal restraint. But make no mistake, USPS is alive, now operating under a sound and fiscally responsible budget, and will emerge stronger for our actions.

I firmly believe that USPS is the country's premier boating educational organization, and we are all fortunate to be part of this great institution. The best years for USPS are ahead of us, and the future has never looked brighter.

Joe Messenburg