DUBLIN, Ohio -- Nearly two years in the drafting stage, the OhioCredit Union League is looking for a dues increase andrestructuring to start in 2008.

The league leadership explained the dues hike is needed to payfor higher lobbying and ad expenses with the overhaul of assessmentrules aimed at "reforming" antiquated policies.

The actual size of the proposed dues increase was not disclosed"until we complete the dialogue with our members," said PaulMercer, president/CEO.

In removing some dues caps and equalizing assessments, theleague did say that it plans to adopt the so-called "square root ofassets formula" on dues payments used by other state leagues andwhich focuses on charging members based on existing budgets.

"Designed as a lasting solution, the proposal will spread theinvestment in league funding across different size credit unions ina more proportional, fair, and equitable way," said an articleappearing in the league's July 7 "eLumination" newsletter.

In the e-mailed publication, the league board said a mail ballotvote of the proposed dues structuring would be conducted early nextmonth "and conclude in early September" with conference calls andtown hall meetings in between. The conference calls for differentsize CUs will be held July 25-30. No schedule was listed for thetown hall sessions.

In describing the dues changes, the board said the "square root"model is meant "to carry the league into the future withconfidence."

Under the model, the square root of a CU's assets is given a"multiplier to attain the dues target," but the board would first"set the dues target level via the annual budget and decide amaximum factor, a cap, for smaller credit unions, and then theappropriate multiplier required to achieve the target would bedetermined."

Jennifer Ferguson, vice chair of the league and president/CEO ofthe $45 million Bay Area Credit Union of Oregon, Ohio, a Toledosuburb, said dues changes have been discussed by the board "for thelast couple of years" and it was formally decided last spring to goforward with a restructuring plan.

The last time the league opted for a dues increase was in 1999,voted on that year and adopted in 2000.

"There were lots of reasons to go ahead with a dues increase, inpart because the league was simply not sustaining itself under itsexisting budget," said Ferguson.

In addition, both large and small CUs complained aboutinequities in the old formulas with small CUs arguing they werepaying too much based solely on members or assets.

The "square root" formula has been used successfully in otherstates, she said. The "eLumination" newsletter cited its adoptionby the Washington, Colorado, and Texas leagues noting the model"does not include a cap for larger credit unions."

Ferguson said Ohio, like other leagues, is facing an array of"challenges" in trying to do its advocacy job in the statelegislature as well as in Washington and in addition supportingfinancial literacy projects across the state.

She said reaction from the 400 members to the increase andrestructuring has been positive. Since the latest newsletter wentout, "I haven't receive a single negative comment," she said notingthe league board is encouraging members to speak out on the issueso the board can settle on the optimum formula.

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