Save CRS 2009 and Renew Herb Klein's Contract

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Author: jpgr767

Started: October 29, 2008, 11:27:57 am

Target: LAFJ Board of Directors

Category: Education

Supporters:

Goal:

100,000

Goal Progress:

Status

Active

This group is dedicated to the task of renewing Herb Klein’s contract, and to the resurrection of the 2009 season.
A recent email sent to the alumni of CRS explains that the LAJF has suffered serious financial losses that have caused the 2009 season to be canceled. In canceling the season the board hopes to save more than $400,000 and to use the 2009 summer to train a new leader who will replace current CEO Herb Klein. The board of describes this new leader as a people-oriented, professional educator with academic credentials and demonstrated administrative skills.” In addition the board says the program facilities will be used for alumni retreats as a way to reinvested them in the program. The letter explains that the Ten present and voting members of the board voted unanimously to cancel the season; which the board feels is the best way of creating a full (60 student) 2010 season. We feel, however, that this logic is flawed.

In spite of a financial crisis, the board would like Herb to step down from his office, and replace him with an educational leader. Herb has proven that he is able to handle the complex financial world of LAJF, with the help of Cristina Busso, who’s contract is about to expire. The team has raised the rate of alumni giving from 6% in 2004 to 16.1% in 2008. In 2004 the endowment was valued at $14.7 million, which Herb raised to $16 million by 2007.

Due to the poor state of the economy and the money lost as a result of the collapse of Lehman Brothers, the endowment has fallen back to $14.5 million. It concerns us that, in this financial crisis, Herb will be replaced by someone with a background in education and not in business. We understand the value of making CRS more widely known in the educational community; however, we feel that in a period of economic uncertainty and instability, a businessperson should remain in control of the foundation.

The Board estimates that canceling the 2009 season could save over $400,000. While that is a large sum of money and would allow for camp to reopen at a full capacity of 60 people in 2010, it is not the only way to achieve these results. It costs $8,000 per student to attend one summer at CRS. Therefore, the LAJF spends an estimated $960,000 per season to serve 120 students (60 at each site). In the 2008 season. the summer program served 40 campers. In addition to saving $320,000 by decreasing the number of students, many counselors and students (including Attila Sebok and Cathy Flynn) believe the smaller size worked better. We suggest that the LAJF reduce the size of the program to 50 students at each site, which would conserve $160,000 each season. In this way, the LAFJ would save roughly $800,000 over the next five seasons– double the amount saved by canceling the 2009 season. The summer program would not be interrupted; it would continue to function at this smaller size until the economy turns around and the LAJF could to expand once again.

We Propose that the Board Of Directors:

Renew Herb Klein's Contract

Create a 2009 CRS season with 50 students per camp, and then expand back to 60 students once the economy allows for it.