Dear Members and Friends of Girl Scouts of Northern California,
As I mentioned in my April 24 update to members, Girl Scouts of Northern California is feeling the effects of the recession. We must reduce our operating budget by $3 million – a 20% reduction – between 2009 and 2010. Together with our Board, our senior staff identified guiding priorities (summarized below) and, based on these priorities, we are making the changes to Council operations that are outlined in this email. There is no easy way to reduce costs by 20%, and these changes will impact each community in different ways. It is my hope that we will work together to get through this challenging time and emerge with strong troops, engaged volunteers and, most importantly, girls of courage, confidence and character who make the world a better place.
I recognize that this email provides far more detail than many of you will be interested in knowing. I have provided a “headlines” summary and more detailed information for those who are interested. Members who would like additional information or have questions or suggestions, should also feel free to contact me: mpark@girlscoutsnorcal.org.
HEADLINES
· Budget gap. Girl Scouts of Northern California is adjusting its operations to close a $3 million revenue gap.
· Priorities. We are guided by priorities established with the Board and reflecting our vision and core strength.
· Changes in Outreach. We are scaling back outreach programs to match the funding we have in place and are establishing a volunteer Girl Scout Corps to transform the way in which our Council supports “Girl Scouting for all girls everywhere.”
· Impact on operations and staff. Operations in all areas of the Council will be affected. We are eliminating 17.5 regular staff positions including 10.5 positions through a staff reduction in force. We also are reducing staff compensation and benefits. And we will be winding down temporary staff positions as we complete programs – a total of 58.25 temp positions will be eliminated.
· Retail Shops and Offices. All of the Council’s retail shops and offices will be closed to the public on Thursdays, starting June 1. This will free up shop and customer service staff to help the Council get by with a reduced administrative staff. Members with meetings and appointments will, of course, be welcome.
- Fairfield office. The Fairfield office and shop will be closed to the public as of June 12. Membership and program staff
- will remain in the community, and we are exploring options for a scaled-back office space for these staff. At present we are exploring a possible renovation of the Cordelia Program Center for use by members and staff and also are working with local members to determine how best to meet their retail needs.
- Looking ahead. We appreciate all that our members do for girls in our communities. Our staff and Board, while saddened by the need to lay off dedicated staff, are looking forward to the future – we are here for the girls and the girls are ready to go – even if the global economy is not.
MORE DETAILS
Budget realities. Gifts and grants are down significantly as is revenue from programs, rentals and investments. Based on year to date results, we expect our 2009 revenue to be about $2 million less than our budget. We have identified $1.7 million in cost reductions from this year’s budget, and we believe that the measures described in this email will enable us to close the remaining $300,000 gap. As we look ahead to the 2010 budget year (which will begin October 1, 2009) we need to sustain this year’s $2 million in budget cuts and we need to cut a further $1 million in costs in order to achieve a balanced budget. To put this in simple terms, our Council started this fiscal year on October 1, 2008, with a $15.7 million expense budget. We need to cut the 2009 budget by 20% and start the 2010 fiscal year on October 1, 2009, with a $12.7 million expense budget.
Guiding priorities. A 20% reduction in expenses requires changes in business as usual. Together with our Board, our senior staff identified the following six core priorities to guide a restructuring of the way our Council serves our members and our communities and the way we generate and use resources.
- Focus resources on development and support of volunteer-led troops and interest groups.
- A fun and rewarding cookie program
- Vibrant, but scaled back, enrichment and camp programs
- A new model for delivering funded program initiatives, outreach troops and outreach programs – so that the size and scale of these programs matches the actual funding, and we build new opportunities for volunteers to support these programs
- Sustain relationships with donors and community partners
- Be a relevant and visible community resource
Operational changes.
· Elimination of staff positions. Effective June 1, 2009, the Council is eliminating 17.5 regular staff positions and winding down 58.25 temporary staff positions. Because of the hiring freeze we implemented last fall, 7 of the eliminated positions are vacant. Unfortunately, we will be laying off 10 wonderful and committed staff and shifting one other to a half time schedule. Their last days at work will vary, with most departing between Friday, May 29 and Friday, June 12. I would like to express my deep gratitude to the staff who will be leaving Girl Scouts of Northern California and thank them for their dedication to our mission. These are sad but necessary changes to ensure the financial stability of our Council. The charts below show that almost all areas of the Council have experienced some impact on staffing:
|
Office & Position Eliminations |
Chico
|
Eureka
|
Fairfield
|
Oakland
|
Redding / Red Bluff / Yreka
|
San Jose
|
Santa Rosa
|
Total |
|
Regular staff |
0 |
0 |
4 |
7 |
2 |
4 |
0.5 |
17.5 |
|
Temp staff |
4 |
3 |
2 |
24.25 |
6 |
15 |
4 |
58.25 |
· Changes in staff positions. As part of the structural changes we also are moving some staff from management positions into direct service positions and other staff into expanded positions. A roster of the Council’s Senior Leadership Team is posted on the website [add link].
· Changes in staff compensation and benefits. We did not award merit pay increases to staff in 2009, and we will continue that indefinitely. I will be taking a 20% pay cut effective June 1, and other members of the Executive Team will be taking a 5% pay cut. We also are reducing paid time off benefits for staff. We will make decisions about 2010 staff compensation and benefits when we have more information from our benefits providers.
· Scaled back outreach troops and programs. We are scaling back troops and programs serving girls in underserved communities so that we are only delivering such programs to the extent that we have funding and volunteers available to support these programs. Our 2009 budget included 58.25 temporary staff positions supporting these programs. As the current school year winds down, most of these temporary positions will be ending and regular staff (who have been managing the temporary staff and supporting volunteers) will continue this work to the extent that we have funding to support the work.
· Formation of Girl Scout Corps. Our grant-funded work in underserved communities has endowed Girl Scouts of Northern California with a wealth of program materials, community connections and staff experience working with girls in challenging circumstances. Our goal is to use the downturn as an opportunity to form a volunteer Girl Scout Corps with training and staff support focused on engaging girls in volunteer led troops and interest groups serving these communities. A senior member of the Council’s membership department will coordinate Girl Scout Corps – working with the Council’s Membership, Adult Development and Program departments to build a vibrant and sustainable model. If you are interested in learning more, please send an email to the Council’s Senior Director of Membership, Dolores Reveles: dreveles@girlscoutsnorcal.org.
· Reduced retail shop and public office hours. Effective June 1, all of the Council’s offices and retail shops will be closed to the public on Thursdays. This is necessary because we are reducing administrative positions to support our goal of keeping direct support staff in the field. Customer service staff who support the shops and “front desks” in the Council’s retail shop locations will use Thursdays to help fill in the gaps left by the elimination of administrative positions. Members will, of course, be welcome to visit offices on Thursdays if they have a scheduled appointment or meeting on these days. In addition, all shops and offices will be closed between December 24 and January 3, 2010.
· Non-staff cost reductions. Staff and property are the Council’s biggest expenses. We also have been carefully managing other expenses and will continue to do so – these include supplies, mileage expenses, restrictions on travel and conferences, etc.
- Re-assignment of Community Development Directors. The Council’s 29 Community Development Directors (CDDs) support Service Units and work with community partners to sustain Girl Scouting in each community they serve. This is the largest staff group in the Council, and we need to use this resource wisely. We have re-assigned CDDs to accomplish the following goals:
- Equalize the work loads: -- so that each CDD supports approximately four Service Units and each Membership Director manages a similar number of CDDs (to the extent practical given our Council’s geography);
- Reduce mileage expenses and driving time -- so that CDDs are supporting Service Units that are close to their homes; and
- Reorganize the Membership staff so that we have fewer staff with management and administrative responsibilities and retain as many direct support CDDs in the field as possible. This reorganization explained in greater detail under “Changing Boundaries” below.
Changing boundaries. We have made changes to help support our effort to streamline management and distribute work-loads. The chart below illustrates how we are re-distributing the work load within the Membership Department.
|
Area |
# of Counties |
# of girl members |
# of Service Units |
# of Membership Directors |
# of CDDs |
|
Greater Bay Area – South Bay and Peninsula |
3 (Santa Clara, San Mateo, San Francisco) |
17,267 |
27 |
1 |
8 |
|
Greater Bay Area – East Bay and Marin |
4 (Alameda, Contra Costa, Solano, Marin) |
20,684 |
27 |
1 |
10 |
|
North Coast
|
6 (Napa, Lake, Sonoma, Mendocino, Humboldt, Del Norte) |
7,504 |
26 |
1 |
7 |
|
North Central |
6 (Butte, Glenn, Tehama, Shasta, Trinity, Siskiyou) |
2,895 |
20 |
1 |
4 |
- Greater Bay Area: We are adding Solano County to the 6 counties previously included in the Greater Bay Area and we are changing the way we manage membership and product sales in these areas as noted below. These changes are primarily for purposes of managing the Council’s staff – the impact on members should be minimal, except that there will be some staff re-assignments.
-
South Bay and Peninsula: Santal Clara, San Mateo and San Francisco counties
will be supported by the following staff teams:
- Membership: Joscelyn Lampman will be taking on a new role as the Membership Director for these 3 counties. Joscelyn lives in Millbrae (San Mateo County) and previously served as a Senior CDD in the Oakland-based membership department, supporting Marin, San Francisco, San Mateo, Alameda, and Contra Costa counties.
- Product Sales: Nancy Kenyon will be taking on an expanded role as Product Sales Director, supporting these three counties. Nancy previously served as the Product Sales Director for Santa Clara County.
-
East Bay and Marin: Alameda, Contra Costa, Solano and Marin counties
will be supported by the staff teams shown below. We recognize that for some Napa County members who live in the town of Napa and south, it may be easier to connect with Girl Scouts in Solano County for Service Unit meetings, pick up of forms, product sales, etc. – and we will definitely work with these members to make this happen.
- Membership: Becky Thorndike will serve as the Membership Director for these 4 counties. Toni Aclaro who had served as the Membership Director for Napa and Solano counties will continue to work in membership and also will take a lead role in establishing the volunteer Girl Scout Corps.
- Product Sales: Sally Blaze will serve as the Product Sales Director for these 4 counties.
North Coast Area: This Area will now include Napa, together with Sonoma, Lake, Mendocino, Humboldt and Del Norte counties. We will be adding a Product Sales coordinator to support North Coast product sales.
North Central Area: This Area will no longer include Napa and Solano counties. Jane Ziad's communications and fund development responsibilities will expand to include the role of Director for the North Central Area which includes the following 6 counties: Butte, Glenn, Tehama, Shasta, Trinity and Siskiyou. Jane also will serve as a member of the Council’s Senior Leadership Team. Unfortunately, we have had to eliminate the positon of the part time staff member who was based in Yreka. Staff located in Mt. Shasta and in the Redding Office will be responsible for supporting members in Siskiyou county. We will be closing the Yreka office which is located in the local community center.
Expanded role of Adult Development. We have learned during the first 18 months of our merger that both operational volunteers and governance volunteers would like more opportunities to connect and give input across our far flung Council. Carolyn Stevens, who served as the Senior Director of the "North Central Area" when it included Napa and Solano counties, will be shifting her focus to adult development, with particular attention to developing training and support for Council Delegates. Carolyn will remain a member of the Council’s Senior Leadership Team in her new role as the Director, Adult Development and Member Relations.
Relocation of the Fairfield business office. We will be relocating the Fairfield business office to a smaller (lower cost) location, to be determined. We are looking into the feasibility of restoring the Cordelia Program Center (several minutes away from the Fairfield Business Office) to serve as a home base for program and membership staff serving Napa, Solano and East Contra Costa counties and to provide a meeting and program space for volunteers and troops. June 12 will be the last day that the Fairfield business office and retail shop will be open to the public. Staff will continue to use this space until we have identified an alternate location in Solano County. If the Cordelia Program Center option pans out, we hope to have the Center ready for service by mid-summer. Because Program and Membership staff spend a lot of time out in the field, we will not be able to support regular public office hours at their new location. This summer we will explore with local members how best to meet their retail shop needs. Our Chief Program and Membership Officer, Michelle McCormick, began these discussions with Napa and Solano County members during late April and will continue to make sure that we are making the best use of our resources to meet the needs of girls and volunteers in these communities. For those of you who are not familiar with the Cordelia Program Center, it was the headquarters of the Napa Solano Council until it was flooded for the 3rd time on New Year's Eve in 2005. It is a lovely building on over one acre of park-like land, that has been used in the past for day camp and sleep-overs. We recognize the risk of returning to a flood zone and, if we decide to re-open the Cordelia Program Center, will be designing and furnishing the space accordingly.
Outdoor Program and Property. We have postponed budget and operating decisions about camps and camp properties for 2010 until we have completed this summer’s camp season and the member survey on Outdoor Program. Camp enrollment is strong this summer, but even with this, we will not break even on the direct costs of operating Council-run camps. We will be considering all possibilities, including “mothballing” some camps and / or properties, extending camp seasons at other camps (which helps us reduce the cost per girl), and opening up camp properties for troop and third party rentals during the summer months. To help volunteers plan their 2010 summers, our goal is to announce these decisions by early September 2009. We hope to get the member survey on Outdoor Program to members by early June – we had hoped to send it to you during April, but had to shift our focus to the matters addressed in this email. The Property Task Group and Board long term assessment of the Council’s camp properties and outdoor program will continue – our short term planning for the 2010 budget is not in any way intended to replace the long term plan that I have outlined in past emails and that we discussed with members at the annual meeting. If interested in past emails on this subject, you can view them at my blog under “camp programs and properties”: http://girlscoutsnorcalceo.typepad.com/marinas_member_updates/
Changes in Fund Development. Our biggest revenue decline has been in grants and corporate giving. It is important to sustain our relationships with the Council’s donors and funders; however, most indications are that the declines in foundation and corporate giving are likely to continue for some time. As a result we have decided to eliminate the position of Senior Director, Grants and Corporate Relations. The Council’s grants team will work directly with Nikki Van Ausdall, Chief Communications and Fund Development Officer. Bernie Hoye, who has served as Senior Director, Grants and Corporate Relations and who also ran the Santa Clara County Beyond Cookies and Camping event, did an excellent job merging the Council’s grant operations. I would like to express my appreciation to Bernie for her service to the Council as a committed member of the Senior Leadership Team during our first 18 months as Girl Scouts of Northern California.
Administrative operations. The 2010 expense budget in the areas of Finance, Human Resources, Information Technology and Administration will be significantly less than the 2009 expense budget. The big areas of savings are: 1) completion of major post-merger IT infrastructure projects; and 2) elimination of the planned Chief Administration and Governance Officer position; and 3) continued streamlining of post-merger finance operations. We will be making improvements to our membership registration, HR information and payroll systems during 2010 that we believe will continue to help us reduce costs. The Council also is facing anticipated increases in property, casualty and earthquake insurance associated with our properties and operations.
This has been a challenging time for the Council’s staff. They have endured a period of great uncertainty as we worked through the restructuring plan outlined in this email. And they have done so with courage, confidence and character – always with an eye on what is best for the girls. I am very thankful to work with such good people. And I am very sad that we have to say good bye to some of them.
I know that these changes will also present challenges for some of our members – I ask, if you have complaints, to please bring them to my attention. I would like our staff to be able to dedicate their attention and energy to building a positive future for Girl Scouting in each of our communities.
As always, please do not hesitate to contact me with any questions or suggestions.
Marina
mpark@girlscoutsnorcal.org
