(2) The NEA Fiscal Year Consolidated Financial Statements.

Transcription

1 th St., N.W. Washington, DC Phone: (202) Lily Eskelsen García President Rebecca S. Pringle Vice President Princess Moss Secretary- Treasurer John Stocks Executive Director June 24, 2016 Education Minnesota In order to satisfy its obligation under Chicago Teachers Union v. Hudson to provide agency feepayers with an adequate explanation of the basis for the fee, the National Education Association (NEA) has included in this mailing the following documents: (1) A 14 page document entitled National Education Association Chargeable and Nonchargeable Audited Expenditures for the Fiscal Year ; and (2) The NEA Fiscal Year Consolidated Financial Statements. The first of the above- mentioned documents breaks down NEA s audited expenditures from its most recently completed fiscal year on a category- by- category basis, and specifically indicates the expenditures it has determined to be chargeable to feepayers and those it has determined to be nonchargeable. A more detailed, i.e., output- by- output, explanation of this breakdown can be found on pages of the second document. In addition, pages of the latter document contain an explanation of how NEA calculates its agency fee chargeable and nonchargeable expenditures. For purposes of this notice to fair- share feepayers in Education Minnesota, NEA has determined that in the fiscal year, 48.73% of its expenditures went for chargeable activities and 51.27% of those expenditures went for nonchargeable activities. Because there is relatively little variation between NEA s expenditures and completed activities and its budgeted expenditures and planned activities, NEA's analysis of its percentages for the fiscal year expenditures are being applied to the fiscal year. However, to assure against any possibility that there may be some unexpected variation in expenditures between the and years, NEA has added a cushion of 4.87%, resulting in a chargeable percentage of 43.86% and a nonchargeable percentage of 56.14%.

2 th St., N.W. Washington, DC Phone: (202) Lily Eskelsen García President Rebecca S. Pringle Vice President Princess Moss Secretary- Treasurer John Stocks Executive Director June 24, 2016 Minnesota NATIONAL EDUCATION ASSOCIATION CHARGEABLE AND NONCHARGEABLE AUDITED EXPENDITURES FOR THE FISCAL YEAR CHARGEABLE & NONCHARGEABLE AUDITED EXPENDITURES BY CORE FUNCTION AREA AND STRATEGIC GOAL CATEGORY I. PROGRAMMATIC ACTIVITIES The National Education Association s (NEA) programmatic activities are organized into eighteen Strategic Goal and Core Function Categories. STRONG AFFILIATES FOR GREAT PUBLIC SCHOOLS Category 1 Partner with affiliates to build capacity and promote strategies designed to enhance public education and support member rights by providing financial support, technical assistance, field support, member engagement support, research support, communications support, and facilitating the sharing of best practices throughout the Association: Conceived and implemented an enterprise data system (EDS) that will integrate multiple data sources to achieve the strategic goals of the Association including the management of transactions with members accurately and securely via a customer relations management system (CRM). Enhanced the financial and economic knowledge and skills of NEA and affiliate staff, management, and leaders through regional and/or affinity group training. Analyzed existing employee benefit plan data from state affiliates and provided recommended changes to improve the effectiveness, efficiency and sustainability of employee contracts. Planned, supported, and executed campaigns with metrics and mobilization strategies. Recruited, engaged and prepared members to take political, legislative, and legal action, moving them along a continuum of activism that lives beyond any single campaign, and engaged and partnered with ESP, retired, student, higher education and K- 12 members on issues and values that resonate in their lives and profession. Developed an audience of activists and spokespeople in the fight for public education by developing powerful narratives on issues of shared Association priorities from the perspective of students, educators, parents and education stakeholders that inspire meaningful actions. Partnered with affiliates to use research and data to refine and

3 identify best practices for managing member interactions at all levels of the organization. Provided research, training, materials, and consultation on conducting both defensive and proactive local and state- level anti- privatization campaigns, supported innovative pilot programs, and disseminated best practices. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $1,973 $40,925,141 $40,927,114 UNITING THE NATION FOR GREAT PUBLIC SCHOOLS Category 1 Partner with affiliates to empower educators to collaborate with school and community stakeholders to co- create solutions designed to shape the future of education, improve student learning, enhance professional practice and the quality of professionals: Identified and advanced solutions that work to meet the needs of the whole child. Provided technical assistance to affiliates on career ladder/professional growth salary initiative and bargaining issues related to Common Core implementation. Engaged members in the community around the roles of Education Support Professionals (ESP s) in School Safety, Health, and Wellness. Promoted the implementation of best practices that enhance education support professionals effectiveness in meeting the needs of the whole child. Empowered educators to become effective instructional, policy, and Associational leaders. Enhanced, promoted, expanded, and evaluated the Great Public Schools Network of members, affiliates, and partners to work towards improving public education. Leveraged resources to provide, arrange, and broker appropriate professional development opportunities for educators in priority schools, including training dealing with the issues of cultural competence and economic disparities. Developed and provided specialized training to enhance ESP effectiveness in furthering school support and wrap- around services. Prepared and supported leaders serving priority schools (or other schools identified with greatest need) with tools and strategies necessary for successful implementation of the Common Core State Standards. Provided financial assistance to affiliates through grants to fund programs or projects to improve teaching and learning conditions. Developed internal and external partnerships to improve the quality of education for all students. Engaged in partnerships with external organizations and foundations to advance educator quality. Built partnerships and coalitions to elevate and transform the profession by developing initiatives with educational stakeholder groups. Explored and expanded new partnerships to build and support educator leadership such as National Network of State Teachers of the Year and the Teacher Union Reform Network. Supported, monitored, and documented Great Public Schools (GPS) Fund Grants related to Teacher Quality. Provided assistance to affiliates pursuing GPS fund grants. Developed resources and materials, including webinars, policy documents, and an NEA Profession- Builders Symposium Series on an array of teacher quality issues. Evaluated the effectiveness of programs within the Center for Great Public Schools. Linked local affiliates into a network for sharing strategies and early wins. Used the GPS Network as a platform to share best practices and success stories. Created mechanisms to enhance collaboration between headquarters and field staff. Increased awareness among members, leadership, and affiliates of research developments and the products and services offered by the Research Department through the GPS Network. - 2-

4 Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $15,875,039 $1,595,228 $17,470,267 RESEARCH, POLICY, AND PRACTICE Category 1 Research that supports Association efforts to advocate for enhanced student learning and workforce quality through good policies and practices: Analyzed federal legislation and regulations to advance federal public education policy. Developed and circulated information that highlights the contributions of ESP work resulting in positive educational outcomes and that informed ESP members around pro- public education initiatives. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $27,388 $1,545,920 $1,573,308 Category 2 Provide resources, technical assistance, and training to affiliates to support their initiatives designed to achieve improvements in teaching and learning: Developed and disseminated resources, materials, and information to support integrated issue campaigns related to teaching and learning issues. Coordinated the activities of the Early Childhood Education Leadership Cohort (ECELC) to provide early language, mathematics, and science literacy, and early childhood policy trainings to state affiliates. Supported affiliates efforts to develop authentic accountability and assessment systems using multiple measures of student learning and school progress. Provided training and professional development to increase effectiveness of ESP leaders and members. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $1,005,858 $1,170,608 $2,176,466 Category 3 Partner with external organizations to support workforce quality and advance NEA s criteria for great public schools and workforce quality: Coordinated symposia to engage stakeholders in public policies important to public education. Participated in coalitions and meetings with stakeholders that promote public policies in alignment with NEA policies. Built and maintained partnerships and relationships with educational, social, and community organizations that will meaningfully and measurably advance NEA's Great Public Schools criteria and local, state, and federal policy agenda. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $774,936 $223,461 $998,397 Category 4 Provide support, research, and information to staff, members and affiliates to support efforts to improve teaching and learning: Provided technical assistance, policy analysis, materials, and information to state affiliates. Researched, drafted, and published policy briefs and other documents, as well as hosted webcasts and meetings and - 3-

5 participated in NEA and affiliate meetings to gather and share information. Tracked and reviewed external research, responded to requests for information, and provided research advice and expertise to NEA, affiliate leaders, and staff. Conducted original research on topics of need and interest. Collected, compiled, and distributed data on members, education, finance and other topics. Maintained the Research Data Mine. Produced the annual Rankings and Estimates report and the ESP Data Book. Calculated the average annual teacher and ESP salaries. Maintained higher education data resources. Responded to content- related requests from other NEA departments and state and local affiliates. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $2,266,282 $1,411,696 $3,677,978 ORGANIZING Category 1 Partner with state affiliates to engage members as a collective by supporting affiliates to activate our vast network in pursuit of the Association s vision and provide leadership development: Shared successful strategies through multiple vehicles including webinars, regular reporting, documentary video, and training of staff and leaders. Strengthened existing and forged new partnerships with national, state, and local organizations that develop support for teaching and learning initiatives at the local level. Designed and implemented a strategic and research based campaign to engage young members around issues meaningful to them, such as closing the achievement gap, college affordability, and income equality. Developed the next generation of Association leaders by testing, assessing, and disseminating new engagement strategies. Designed and delivered organizing training for state affiliate staff through the UniServ Academy and staff training cadres based on the UniServ Core Competencies. Provided technical and conceptual training in data systems and analytics to NEA and affiliate staff and leaders. Provided training and support for adoption and implementation of financial and operational standards at the state and local level. Strengthened NEA/state affiliate partnerships through ongoing two- way communications and coordination of NEA resources designed to meet state needs. Developed an enterprise wide system to provide functionality to the Association while providing a single point of contact for affiliates seeking membership, engagement, and/or organizing opportunities. Administered policies and guidelines and disbursed the funds for the Small States Foundation Program, UniServ Program, Local President Time Release Program, Unified State Executive Director Program (USEDP), and the Affiliate Financial Assistance Program. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $69,497,489 * $32,820,957 $102,318,446 ADVOCACY AND OUTREACH Category 1 Supports the Association s efforts to achieve great public schools through federal and state legislation: Prevented anti- working family legislation from passing at the federal level, including threats to retirement security, collective bargaining, and secure funding for public K- 12 and higher education. Advanced and passed pro- public education - 4-

6 legislation at the federal level that maintains a federal focus on marginalized groups of students (i.e. high poverty, special education, ELL) and promotes student centered social and economic justice causes. Engaged other organizations to support pro- public education, social, and economic justice legislation. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $- 0- $4,265,785 $4,265,785 Category 2 Enhance collective bargaining by providing support and technical assistance in the areas of collective bargaining, health care, retirement security, and compensation: Maintained and updated tools used to track collective bargaining developments and assist affiliates in achieving bargaining goals. Provided technical assistance and training on bargaining and advocacy approaches to selected issues, including contract issues. Provided technical support and training to affiliates and NEA departments on health care benefits and health care laws and worked to implement federal health care reform in accordance with NEA policy. Developed and provided proactive approaches to protecting and defending public pensions and public educator retirement security through technical assistance and training. Monitored and reported on retirement plans. Provided technical assistance and training to affiliates on compensation practices, including salary/living wage campaigns, alternative compensation arrangements, and NEA compensation applications. Tracked and maintained information on alternative compensation programs and the teacher salary database. Administered the Unified Legal Services Program (ULSP), the NEA funded legal cases programs, and the Educators Employment Liability (EEL) program. Promoted and supported external partnerships that advance NEA s policies on collective bargaining, compensation, health care and retirement security in order to achieve great public schools for every student. Conducted the NEA Joint Conference on Concerns of Minorities and Women and the Ethnic Leaders Meeting with a continued increased focus on developing leaders in and out of the Association. Developed strategic content partnerships with LGBTQ, anti- bullying, dropout prevention, women s, minority, and social justice organizations to position NEA as a leader in human and civil rights and economic justice. Supported affiliates in identifying and engaging partners within the minority/ethnic community that are immersed in work involving parental engagement and community organizing to move a student- centered agenda. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $24,662,440 $17,567,031 $42,229,471 Category 3 Partnerships with parents, families, ethnic minority communities, and other stakeholders who are essential to quality public education: Developed and executed a strategic, measureable, and robust system of communication and outreach to outside organizations, entities, and individuals about the work of the NEA and its affiliates' to improve public education, fight for economic and social justice, and fulfill the NEA mission, vision, and core values. Identified and entered into partner agreements with entities that will assist in achieving NEA s strategic goals and provide technical assistance to affiliates to engage minority communities. Identified new and potentially impactful organizations and entities, as well as identified trends in outside organizations' advocacy, organizing, civic - 5-

7 engagement, communications, or research strategies that may impact NEA's work. Developed and implemented detailed processes and procedures for making, monitoring, and evaluating annual financial and in- kind contributions to partner organizations to ensure sufficient and impactful returns on investment, monitored progress towards NEA's strategic goals, and overall outreach outcomes assessed. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $353,057 $9,603,381 $9,956,438 Category 4 Leadership and advocacy training to promote strategies to enhance educator practice and to empower educators to become effective leaders in improving student outcomes in marginalized and underserved populations: Conducted the Minority Leadership Training Program and Women s Leadership Training Program. Provided diversity, social justice, LGBTQ, bullying, sexual harassment, cultural competency, and ELL training to assist Association, leaders, and members. Coordinated the engagement of Human and Civil Rights State Coordinators to support greater connection to the human and civil rights and social economic justice work occurring at the national, state, and local level. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $763,176 $1,710,427 $2,473,603 Category 5 Member engagement and outreach to advance equity for students in need and strengthen public schools: Created and maintained a database to facilitate the implementation of an engagement program with the goal of identifying, educating, and mobilizing member activists and organizers. Raised awareness and passed legislation to support student- centered solutions that work to meet the needs of the whole child, and the improvement of professional practice in education to ensure student success. Enhanced the capacity and strength of NEA s federal advocacy by increasing the frequency of activism of NEA membership on behalf of pro- public education and student centered social and economic justice legislation. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $- 0- $475,076 $475,076 Category 6 Provide technical assistance and support to NEA leaders to advance NEA s mission, vision, and values: Provided resources, counsel, and expertise in response to standing committees and governance requests. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $64,830 $306,875 $371,705-6-

8 COMMUNICATION Category 1 Design, produce and distribute communications strategies that engage NEA members and the public to support the Association s political and legislative goals and NEA advocacy campaigns: Engaged members and the public to support advocacy of NEA supported issues, political and legislative goals that benefit our members and their students, and that strengthen public schools through federal policies. Supported NEA s advocacy campaigns on human rights, social and economic justice issues that reflect NEA s commitment to equal opportunity and great public schools for every student. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $- 0- $491,881 $491,881 Category 2 Design and execute strategic communication campaigns that advance Association messaging and that strengthens the NEA brand via components developed through the use of up- to- date research, planning and evaluation data: Deployed multiple technology tools across various platforms in Raise Your Hand (RYH) campaigns. Supported NEA s leadership and advocacy campaigns for lighthouses and other RYH initiatives and programs that strengthen public schools, leverage and drive student success, and advocated for policies that equip members to excel and best serve students. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $- 0- $36,419 $36,419 Category 3 Design and execute strategic communication campaigns, special projects, and events that strengthen the NEA brand and reputation and engage members in positive, proactive communication: Provided rapid response communications support to affiliates during moments of crisis. Maintained the national media and digital presence for Read Across America (RAA) and assisted states and locals in creating and leveraging their RAA events to further the Association s student- centered, Association- led goals and organizing efforts. Planned and implemented special projects/events related to NEA Association wide efforts around back to school. Implemented a coordinated, strategic approach to the Association s communication efforts with state and local affiliate communicators resulting in an Association- wide communications plan. Built communication capacity of local Association leaders and staff through training, development, and leadership opportunities. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $- 0- $5,340,933 $5,340,933 Category 4 Provide communications support for organizing campaigns: Provided communication capabilities assessment, strategic planning, personnel training, product production, campaign execution support, and campaign performance analysis support for NEA and affiliate organizing campaigns. Planned, developed, produced, deployed, and analyzed multimedia and online communication products and services to support NEA and affiliate organizing campaigns. - 7-

9 Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $- 0- $597,341 $597,341 Category 5 Develop and execute media strategies in support of the Association s efforts targeting national, state and regional media: Developed, conceived and executed comprehensive media across all platforms: traditional media, print, TV, radio, and other forms of media. Tracked metrics and qualitative analytics on NEA media coverage, communications campaigns, advertising, and engagement in order to better develop and execute media strategies. Conducted quantitative and qualitative research to shape and inform messaging and communication plans. Designed and implemented strategies to influence key target audiences, including parents, opinion leaders, and public attitudes such as regarding the appreciation of NEA leadership in student success and accomplished education professionals. Developed written tools, such as message guidance, training materials, and webinars, with partners, affiliates, and/or surrogates. Developed and disseminated creative and strategic guidelines, templates, stock photography of NEA members, motion graphics, info- graphics and other related materials on NEAs revised branding standards and overall brand management strategies to assure a consistent identity with affiliates, members, partners and the public. Performed data collection and analysis services to measure NEA s effectiveness to engage, inform, and mobilize online audiences to action in support of issues strategically important to optimizing professional development and empowerment. Performed needs assessment, conceptual planning, design, production, and maintenance services for NEA website, mobile application, internet technology, and emerging digital engagement products and platforms that facilitate a non- stop effort to engage, inform, support, mobilize, and activate NEA members and public audiences. Informed NEA s affiliates, leaders, and members about NEA policies, programs, and accomplishments through an internal network of printed publications, including NEA TODAY and specialized constituency periodicals. Executed strategic communication programs at NEA s Representative Assembly. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $826,782 $22,317,688 $23,144,470 PROGRAMMATIC ACTIVITY SUMMARY Total Programmatic Activity Chargeable Audited Expenditures..$116,119,250 Total Programmatic Activity Nonchargeable Audited Expenditures $142,405,848 Total Programmatic Activity Expenditures $258,525,098 Programmatic Activity Chargeable Percentage 44.92% Programmatic Activity Nonchargeable Percentage % - 8-

10 II. SUPPORT/OVERHEAD NEA S Support and Overhead Activities are organized in 12 Core Function Categories. STRONG AFFILIATES FOR GREAT PUBLIC SCHOOLS Category 1 (Tactics ): Partnered with affiliates to integrate, collect, and manage data to identify threats and opportunities and to connect and activate our members. Improved capacity to provide analysis, monitoring, and reporting on the indicators required to determine the current and future viability of an affiliate. Planned and supported campaigns with metrics and mobilization strategies that meet association goals, and test and strengthen association capacity and membership engagement beyond a single campaign effort. Implemented strategies for managing the Association s member interactions at all levels of the organization, partnered with affiliates to use research and data to refine and identify best practices for managing member interactions, and monitored and assessed quality of member engagement efforts. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $341,007 $1,169,744 $1,510,751 COMMUNICATIONS Category 5 (Tactics 5.1, 5.3, ): Planned, developed, produced and deployed digital engagement strategies and products. Developed and disseminated creative and strategic guidelines, templates, stock photography of NEA members, motion graphics, info- graphics and other related materials on NEAs revised branding standards and overall brand management strategies to assure a consistent identity with affiliates, members, partners and the public. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $1,532,389 $2,197,835 $3,730,224 BUSINESS OPERATIONS Category 1 (Tactics ): Maintained financial systems and related business processes to improve NEA and affiliate efficiency in recording and reporting financial transactions. Promoted NEA and affiliate fiscal health through training and advisory services for staff and governance that enhances their ability to conduct Association business and meet regulatory requirements. Managed and projected the Association s finances by monitoring revenues and expenditures and analyzing factors that affect revenue streams and cause expenditure variances. Reduced loss and increased efficiency by executing a comprehensive risk management program that includes audits, compliance monitoring, and information security. Provided legal advice, counseling, agency fee support and support for the NEA Fund for Children and Public Education and Federal Election Commission matters. - 9-

11 Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $6,595,845 $7,795,860 $14,391,705 Category 2 (Tactics ): Managed position control, classification costs, and all other workforce HR costs and their effect on the personnel line. Managed labor relations, payroll, benefits, performance management, and NEA staff s collective bargaining agreements. Developed NEA s workplace culture to foster a workforce inspired to achieve NEA's vision and strategy. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $5,364,685 $1,614,373 $6,979,058 Category 3 (Tactics 3.1): Led, directed, and aligned NEA s programs and services by engaging staff and managing resources to effectively advance the Association's strategic goals and core functions. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $8,342,859 $10,191,463 $18,534,322 Category 4 (Tactic ): Facilitated the development of NEA strategy and aligned both strategy and operations. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $4,622,975 $1,317,429 $5,940,404 Category 5 (Tactic ): Built a solid foundation of IT infrastructure, managed, adopted, and promoted the use of shared, common web- based services, data, and technology architecture. Directed resources for overall design, development, modernization, and maintenance of a robust central computing center. Provided standardization and improved IT service level management for all consolidated and enterprise- based services. Secured NEA s IT infrastructure. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $9,408,814 $11,536,903 $20,945,717 Category 6 (Tactic ): Implemented building projects that improved NEA s infrastructure, and continue to make NEA a green environment. Managed NEA facilities, operational support, meeting logistics, and print media production. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $13,610,828 ($66,688) $13,544,

12 GOVERNANCE Category 1 (Tactics , 4.1): Assessed NEA's governance procedures and policies to ensure that the organization has the procedural and structural ability to effectively respond to threats, advance its goals, and operate with maximum efficiency. Facilitated and supported well- informed decision- making by the Executive Officers and Committee to advance the organization s present and anticipated needs. Facilitated and supported well- informed decision- making by the Board of Directors that meets the contemporary and future needs of the organization. Facilitated and supported well- informed decision- making by the Representative Assembly that meets the contemporary and future needs of the organization. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $6,011,938 $1,391,104 $7,403,042 Category 2 (Tactic 2.1): Facilitated and supported well- informed deliberations of appointed committees and councils. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $174,177 $229,308 $403,485 Category 3 (Tactics ): Provided Association leadership voice and engagement on events, topical issues, and relationships that best advance NEA s goals. Handled schedule coordination and logistics, correspondence with members, affiliates, and influentials, and developed opinion pieces in strategic print and web properties. Facilitated and supported leadership initiatives that strengthen NEA s alliances with U.S. and international labor unions. Identified, systematized, and disseminated best educational policies and practices from other countries. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $464,752 $1,654,587 $2,119,339 Category 4 (Tactics ): Developed and identified content and experiences that will effectively impart NEA Leadership Competencies and prepare leaders with the knowledge, skills, and abilities necessary to lead relevant and thriving Associations. Partner with committed affiliates to align competency- based leadership development programming, and leverage collective resources. Delivered a National Leadership Summit that is based upon the NEA Leadership Competencies. Chargeable audited expenditures Nonchargeable audited expenditures... Total audited expenditures. $1,263,415 $1,500,520 $2,763,

13 SUPPORT/OVERHEAD SUMMARY Total Support/Overhead Chargeable Audited Expenditures..$57,733,684 Total Support/Overhead Nonchargeable Audited Expenditures.$40,532,438 Total Support/Overhead Audited Expenditures.$98,266,122 III. OVERALL ANALYSIS OF NEA AUDITED EXPENDITURES Total Chargeable Audited Expenditures $173,852,934 Total Nonchargeable Audited Expenditures...$182,938,286 Total Audited Expenditures..$356,791,220 Final Chargeable Percentage.48.73% Final Nonchargeable Percentage 51.23% * In light of the U.S. Supreme Court's decisions in Lehnert v. Ferris Faculty Ass'n, 500 U.S. 507 (1991), and Locke v. Karass, 555 U.S. 207 (2009), NEA has allocated its UniServ grants program expenditures on the basis of Education Minnesota s determination of the chargeable percentage of the grants it received in the fiscal year, 98.01%. Thus, the resulting UniServ chargeable amount is $62,176,638, rather than $ 54,557,605 that was used for purposes of the NEA audit. The reason for the difference between the new figure for this program and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the fair- share fee state affiliates had not yet determined their fiscal year chargeable percentages. Accordingly, for purposes of the audit, the expenditures in the UniServ grants program were allocated using a conservative adjustment of the average chargeable percentage of UniServ grants to fair- share fee state affiliates for the year ended August 31, 2014, 86%. In addition, NEA has allocated its expenditures in the Small States Foundation Program in accordance with Education Minnesota s determination of the overall chargeable percentage of its total expenditures for the fiscal year 83.20%, resulting in a chargeable amount of $2,882,141, rather than $2,528,802 that was used for purposes of the NEA audit. The reason for the difference between the new figure for this program and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the fair- share fee state affiliates had not yet determined their fiscal year chargeable percentages. Accordingly, for purposes of the audit, the expenditures in the Small States Foundation program were allocated using a conservative adjustment of the average chargeable percentage of fair- share fee state affiliates total expenditures for the year ended August 31, 2014, 73%. (continued...) - 12-

14 Similarly, NEA allocated its expenditures in the Unified State Executive Director Program ( USEDP ) in accordance with Education Minnesota s determination of the chargeable percentage of its executive director s salary and benefits for the fiscal year, 99.35%, resulting in a chargeable amount of $1,068,456, as compared with $763,567 that was used for purposes of the NEA audit. Again, the reason for the difference between the new figure and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the fair- share fee state affiliates had not yet determined their fiscal year percentages. Accordingly, for purposes of the audit, the expenditures in the USEDP were allocated using a conservative adjustment of the average chargeable percentage of expenditures for the salary and benefits of fair- share fee state affiliate executive directors for the year ended August 31, 2014, 71%. Finally, since the fair- share fee locals affiliated with Education Minnesota have allocated their expenditures into chargeable and nonchargeable categories, NEA is allocating its expenditures in the Local Presidents Release Program by the average chargeable percentage, 85%, reported by those locals, resulting in a chargeable amount of $197,273, as compared with $167,102 that was used for purposes of the NEA audit. The reason for the difference between the new figure for this program and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the fair- share fee affiliates had not yet determined their fiscal year chargeable percentages. Accordingly, for purposes of the audit, the expenditures in the Local Presidents Release Program were allocated using a conservative adjustment of the average chargeable percentage of fair- share fee local affiliates total expenditures for the fiscal year ended August 31, 2014, 72%. NEA has allocated its expenditures in the Affiliate Financial Assistance Program in accordance with Education Minnesota s determination of the overall chargeable percentage of its total expenditures for the fiscal year, 83.20%, resulting in a chargeable amount of $1,075,615, rather than the amount of $943,748 that was used for purposes of the NEA audit. The reason for the difference between the new figure for this program and its counterpart in the NEA audit is that, at the time the audit was conducted, most of the fair- share fee state affiliates had not yet determined their fiscal year chargeable percentages. Accordingly, for purposes of the audit, the expenditures in the Affiliate Financial Assistance Program were allocated using a conservative adjustment of the average chargeable percentage of fair- share fee state affiliates total expenditures for the year ended August 31, 2014, 73%. As a result of these modifications to the allocation of expenditures in the UniServ grants, Small States Foundation, USEDP, Local Presidents Release, and Affiliate Financial Assistance Programs, the total chargeable amount for Category 1 of Organizing is $69,497,489, as compared with $61,058,190 in the NEA audit. In light of the decisions in Lehnert and Locke, see note *, which recognized that part of a local s affiliation fee which contributes to the pool of resources potentially available to the local is assessed for the bargaining unit's protection, even if it is not actually expended on that unit in any particular membership year, NEA has allocated its (continued...) - 13-

15 Unified Legal Services Program (ULSP) reimbursements on the basis of the Education Minnesota s determination of the chargeable percentage of the reimbursements it received in the fiscal year, 85.62%. Thus, the resulting ULSP chargeable amount is $20,542,579. This figure differs from the ULSP chargeable amount used for purposes of the chargeable/nonchargeable schedule included in the NEA audit, $15,595,277, because the amount in the audit was based upon a conservative adjustment of the average chargeable percentage of ULSP reimbursements to fair- share fee state affiliates for the year ended August 31, That percentage was 65%. NEA used this method because, at the time its audit was conducted, most of those state affiliates had not yet determined their fiscal year chargeable percentages. In addition, for purposes of the NEA audit, Educators Employment Liability (EEL) insurance expenditures and Attorney Referral Program expenditures (ARP) were treated as chargeable. However, Education Minnesota does not make EEL and ARP coverage available to fair- share feepayers and therefore such expenditure, $11,648,341, has been treated as nonchargeable with regard to Education Minnesota. Thus, the resulting chargeable total for Category 2 of Advocacy and Outreach is $24,662,440, as compared with $31,363,479 in the NEA audit. As a result of the adjustments in the programmatic activities, see notes * and, the Programmatic Activity Chargeable Percentage is 44.92% as compared with 44.25% that was in the NEA audit. Therefore, for purposes of these calculations, the figure 44.92% was used to allocate certain expenditures in the Support/Overhead activities in accordance with the procedure discussed in footnote 3 on pages of the NEA audit

16 NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AUGUST 31, 2015

17 NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AUGUST 31, 2015 CONTENTS Report of Independent Auditors 1 Consolidated Statements of Financial Position 3 Consolidated Statements of Activities 5 Consolidated Statements of Cash Flows 7 Notes to Consolidated Financial Statements 9 Supplemental Notes and Schedules Supplemental Summary Schedule of Agency Fee Chargeable and Nonchargeable Expenditures 32 Notes to Supplemental Summary Schedule of Agency Fee Chargeable and Nonchargeable Expenditures 42 PAGE

18 REPORT OF INDEPENDENT AUDITORS To the Executive Committee and Members of the National Education Association of the United States We have audited the accompanying consolidated financial statements of the National Education Association of the United States and its subsidiaries (NEA), which comprise the consolidated statements of financial position as of August 31, 2015 and 2014, and the related statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on the consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

19 Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the National Education Association of the United States and its subsidiaries as of August 31, 2015 and 2014, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter Our audits were made for the purpose of forming an opinion on the basic consolidated financial statements taken as a whole. The accompanying information included on pages 32 through 48 is presented for purposes of additional analysis of the basic consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole. Bethesda, MD December 3,

20 National Education Association of the United States and Subsidiaries Consolidated Statements of Financial Position August 31, 2015 and 2014 Assets Current assets Cash and cash equivalents $ 195,396,489 $ 176,214,555 Membership dues receivable- net 31,893,138 31,377,081 Amount due from affiliates and other organizations - net 1,577,473 1,839,429 Accounts receivable 4,675,827 7,565,475 Notes receivable 1,000,000 1,000,000 Prepaid expenses 6,828,713 2,977,756 Deferred income taxes 374, ,992 Other current assets 283, ,815 Total current assets 242,029, ,487,103 Long-term assets Notes receivable - net 5,374,320 6,374,320 Deferred rent assets 368,503 - Deferred leasing commission 183, ,421 Investments 45,585,498 45,532,964 Pension asset 11,588,285 18,406,152 Property and equipment - net 59,243,239 57,133,798 Total long-term assets 122,343, ,700,655 Total assets $ 364,373,541 $ 349,187,758 Liabilities and Net Assets Current liabilities Accounts payable $ 14,785,126 $ 13,553,610 Accrued liabilities 14,212,580 14,179,153 Deferred income 2,194,962 1,825,230 Accrued annual leave 6,627,010 6,490,191 Amount held for affiliates and other organizations 1,170,743 1,051,672 Total current liabilities 38,990,421 37,099,856 See accompanying notes to financial statements

21 National Education Association of the United States and Subsidiaries Consolidated Statements of Financial Position (continued) August 31, 2015 and Long-term liabilities Grant commitment $ 500,000 $ 600,000 Accrued severance payable 5,922,654 5,972,811 Deferred income 16,263,897 16,576,748 Deferred income taxes 3,345,317 6,679,971 Total long-term liabilities 26,031,868 29,829,530 Total liabilities 65,022,289 66,929,386 Unrestricted net assets Undesignated net assets 167,173, ,182,908 Designated net assets 132,177, ,075,464 Total unrestricted net assets 299,351, ,258,372 Total liabilities and net assets $ 364,373,541 $ 349,187,758 See accompanying notes to financial statements

22 National Education Association of the United States and Subsidiaries Consolidated Statements of Activities Years Ended August 31, 2015 and 2014 Operating Activities Unrestricted revenues NEA Programs: Dues $ 359,483,089 $ 358,470,103 Other 4,150,557 9,001,528 Total NEA programs 363,633, ,471,631 Member Benefits Programs: Program revenues - suppliers 51,479,593 55,020,903 Other 481, ,625 Total member benefits programs 51,961,246 55,282,528 NEA Properties: Rental income 2,022,676 1,893,018 Other 109,627 97,511 Total NEA Properties 2,132,303 1,990,529 Total unrestricted revenues 417,727, ,744,688 Expenses Program services: NEA programs 284,819, ,376,742 Member Benefits programs 42,286,841 43,103,166 NEA Properties 1,616,521 1,368,523 Total program services 328,722, ,848,431 See accompanying notes to financial statements

23 National Education Association of the United States and Subsidiaries Consolidated Statements of Activities (continued) Years Ended August 31, 2015 and 2014 Operating Activities Expenses (continued) Support services: NEA programs $ 58,170,369 $ 58,066,786 Member Benefits programs 8,200,009 7,844,280 NEA Properties 210, ,482 Total support services 66,580,727 66,147,548 Total expenses 395,303, ,995,979 Change in net assets from operations 22,424,062 47,748,709 Non-operating Activities Change in pension obligation other than net periodic pension cost and other charges (5,331,182) (1,438,971) Change in net assets 17,092,880 46,309,738 Net assets Beginning of year 282,258, ,948,634 End of year $ 299,351,252 $ 282,258,372 See accompanying notes to financial statements

24 National Education Association of the United States and Subsidiaries Consolidated Statements of Cash Flows Years Ended August 31, 2015 and Cash flows from operating activities Changes in net assets $ 17,092,880 $ 46,309,738 Adjustments to reconcile changes in net assets to net cash provided by operating activities Depreciation and amortization 5,255,747 6,078,482 Bad debt expense 125,930 1,536,290 Net realized gain on investments (431,126) (2,090,439) Net unrealized gain on investments 2,220,946 (1,157,042) Write-off of furniture and equipment 13,479 6,864 Deferred income taxes (3,474,045) 1,819,403 Changes in assets and liabilities: Increase in membership dues receivable (641,987) (872,146) Decrease (increase) in amount due from affiliates and other organizations 261,956 (663,048) Decrease (increase) in accounts receivable 2,889,648 (559,482) Increase in prepaid expenses (3,850,957) (1,057,548) (Increase) decrease in other current assets (6,133) 67,861 Increase in deferred rent assets (368,503) - Decrease (increase) in deferred leasing commission 69,696 (8,824) Decrease (increase) in prepaid pension asset 6,817,867 (4,493,797) Increase (decrease) in accounts payable 1,231,516 (1,940,664) Increase in accrued liabilities 33, ,313 Increase in accrued annual leave 136, ,337 Increase in amount held for affiliates and other organizations 119, ,745 Decrease in grant commitment (100,000) (100,000) (Decrease) increase in accrued severance payable (50,157) 121,722 Increase in deferred income 56,881 1,200,019 Net cash provided by operating activities 27,402,955 45,245,784 See accompanying notes to financial statements

25 National Education Association of the United States and Subsidiaries Consolidated Statements of Cash Flows (continued) Years Ended August 31, 2015 and Cash flows from investing activities Issuance of notes receivable $ (100,939) $ (144,016) Repayment of notes receivable 1,100,939 1,500,000 Purchases of investments (12,304,065) (14,410,181) Proceeds from sale of investments 10,461,711 9,998,032 Purchases of property and equipment (7,378,667) (4,939,281) Net cash used in investing activities (8,221,021) (7,995,446) Net change in cash and cash equivalents 19,181,934 37,250,338 Cash and cash equivalents Beginning of year 176,214, ,964,217 End of year $ 195,396,489 $ 176,214,555 Supplemental disclosure of cash flow information - cash paid during the year Interest $ 5,204 $ 18,832 Income taxes $ 680,243 $ 1,349,314 See accompanying notes to financial statements

26 NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AUGUST 31, 2015 NOTE 1. ORGANIZATION The National Education Association of the United States (NEA) is a not-for-profit organization incorporated under an Act of the United States Congress. Its mission statement reads: our mission is to advocate for education professionals and to unite our members and the nation to fulfill the promise of public education to prepare every student to succeed in a diverse and interdependent world. To help realize this mission, the NEA adopted a vision of a great public school for every student. This vision guided NEA s strategic plan and budget, which is organized around two Strategic Goals and six Core Function Areas. The Strategic Goals address two key challenges: Strong Affiliates for Great Public Schools - In partnership with state and local affiliates, NEA will aggressively advance an organizing culture designed to build capacity to grow membership, increase member activism, improve fiscal health, enhance public education, and assist affiliates in fending off attacks to member rights and union strength. Uniting the Nation for Great Public Schools - In partnership with state and local affiliates, NEA will empower educators to collaborate with school and community stakeholders to co-create solutions designed to shape the future of education, improve student learning, achieve educational equity, enhance professional practice and the quality of professionals, and advance successful solutions that drive national, state, and district level policies. The Core Function areas address regular, ongoing programs and services: Research, Policy, and Practice for Great Public Schools - Track and identify practices that have been successful in encouraging student learning or in shaping the future of learning. In partnership with organizations supportive of educator led transformation of public education, use key learnings and research to develop, identify, and implement national, state, and district policies that facilitate these practices

27 NOTE 1. ORGANIZATION (CONTINUED) Organizing - In partnership with state and local affiliates, NEA will aggressively advance an Association-wide culture of organizing and engage members as a collective by supporting affiliates to activate our vast network in pursuit of the vision. Advocacy and Outreach - In partnership with state and local affiliates and other organizations supportive of educator-led transformation of public education, advocate educators positions to national, state and district policymakers, education stakeholders, and the public (with priority focus on parents, ethnic minority communities, and labor partners) in order to influence policy development and debates to achieve equity of opportunity, access, and quality in public education; advance our members views and expertise about policy for great public schools for every student; promote social justice; and advance and preserve members voices, rights, and optimal conditions for teaching and learning. Communications - Utilize the best communication strategies to engage affiliates, members, partners, parents and communities. Business Operations - Administer the business operations in a manner that supports the changing needs and priorities of the organization and ensures efficient and effective infrastructure that supports good fiscal management, uses technology for innovation and strengthens NEA s human capital. Governance - In partnership with leadership, develop professional development and decision making processes that clearly advance the organization s mission and vision. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation - The consolidated financial statements include the accounts of NEA and its wholly owned subsidiaries: NEA Properties, Inc. (NEAPI), NEA s Member Benefits Corporation (MBC), and MBC s wholly-owned subsidiary, the NEA Professional Services Corporation, NEA360 LLC (NEA360), and an affiliated entity, National Education Employees Assistance Fund, Inc., (NEEAF). NEAPI s primary purpose is to hold title to and manage certain commercial real property in Indiana, collect income from that property and periodically surrender the net proceeds derived to NEA. MBC serves as a contractor for NEA s member benefits functions. NEA360 is an entity that was established to finance and implement a new state-of-the-art membership management system (the NEA360 System) in furtherance of NEA s mission of advancing public education and MBC s mission to develop and promote member benefits. NEEAF is combined with the accounts of NEA due to common control and an economic interest. All intercompany accounts and transactions have been eliminated in consolidation. Measure of Operations - NEA includes in its measure of operations all revenue and expenses that are integral to its continuing core program services with the key objective being predictability of indicated results. Non-operating income and expenses include unrealized appreciation (depreciation) and defined benefit pension charges included in the change in pension obligation other than net periodic pension cost and other charges

28 NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting - The accompanying consolidated statements are prepared on the accrual basis of accounting. To ensure observance of its bylaws, the resources of NEA are classified internally for accounting and reporting purposes into funds established according to their nature and purpose. The assets, liabilities, net assets, and changes in net assets are reported in the following two fund groups: General Operating Fund - The bylaws of NEA provide that the General Operating Fund shall comprise all income received in the form of dues, interest, dividends, fees, earnings from advertising, sales of NEA publications, payments for services, and funds received by gift, bequest, devise, or transfer to NEA, which are not specifically designated for deposit in the Capital Improvement Fund. Special Purpose Funds - The Special Purpose Funds are grouped for reporting purposes into Related Entity, Bylaw, and Other Special Purpose Funds. The Related Entity Special Purpose Funds are Member Benefits Corporation (MBC), NEA Properties, Inc. (NEAPI), NEA360, LLC (NEA360), Advocacy Fund, and the National Education Employees Assistance Fund (NEEAF). The Bylaw mandated Special Purpose Funds are the Capital Improvement Fund, Great Public Schools Fund, Special Dues Ballot Fund, Special Dues Media Fund and the UniServ Fund. The Other Special Purpose Funds are the Cash Stabilization, External Partnership Grants, Infrastructure Reserve Fund, National Issues Advancement Fund, Membership Organizing, and the NEA-Life Membership Fund. Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the deferred revenue, useful life of fixed assets, pension liability, reserve for uncollectible receivables, reserve for contingent liabilities, and deferred tax. Actual results could differ materially, in the near term, from the amounts reported. Concentration of Risks - Financial instruments that potentially subject NEA to significant concentrations of credit risk principally consist of cash, accounts receivable, and investments. NEA places its cash in a financial institution that is federally insured under the Federal Depository Insurance Corporation (FDIC). At August 31, 2015, the cash aggregate balances were in excess of the FDIC insurance limits by approximately $197,320,000 and therefore, bear some risk, since they were not collateralized. NEA has not experienced any losses on its cash to date related to FDIC insurance limits

29 NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) MBC had material revenues from two entities representing approximately 34 percent and 43 percent of revenues, respectively, for the year ended August 31, 2015, and approximately 36 percent and 39 percent of revenues, respectively, for the year ended August 31, As of August 31, 2015, two entities accounted for approximately 13 percent and 38 percent of MBC s accounts receivable, respectively. As of August 31, 2014, two entities accounted for approximately 16 percent and 42 percent of MBC s total accounts receivable, respectively. Cash and Cash Equivalents - Cash equivalents consist of interest-bearing deposits and securities with original maturity of less than three months when purchased and are recorded at cost, which approximates fair value. Investments - Investments consist of mutual funds and exchange traded funds and are recorded at fair value, with any gains or losses reflected in the consolidated statements of activities and changes in net assets. Net realized gains from operating activities were $431,126 and $2,090,439 for the years ended August 31, 2015 and 2014, respectively. The net unrealized loss included in operating activities was $1,866,892 and the unrealized loss included in non-operating activities was $354,054, for a total net unrealized loss of $2,220,946 for the year ended August 31, The net unrealized gain included in operating activities was $1,145,673 and the unrealized gain included in non-operating activities was $11,369, for a total net unrealized gain of $1,157,042 for the year ended August 31, Property and Equipment - Property and equipment are recorded at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives range from 2 to 15 years for furniture, fixtures, and equipment and 25 to 40 years for buildings and leasehold improvements. NEA capitalizes direct costs incurred during the application development and implementation stages for developing software for internal use. These software costs are depreciated using the straight-line method over the estimated useful life of the software, generally three to five years. All costs incurred during the preliminary project stage are expensed as incurred. Depreciation and amortization expense was $5,255,747 and $6,078,482 for the years ended August 31, 2015 and 2014, respectively, and is reflected in NEA s support services expenses in the consolidated statements of activities and changes in net assets. Accrued Severance Payable - NEA has a policy entitling employees with over 10 years of service to severance pay equal to 10 weeks of salary. NEA s accrued severance pay has been calculated in accordance with Accounting Standards for Compensation-Nonretirement Postemployment Benefits

30 NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) NEA-Life Membership Fund (NEA-Life) - NEA offers life membership through a Special Purpose Fund known as the NEA-Life Membership Fund. NEA-Life dues qualify retired members for certain services provided to active members, as well as services designed specifically for retired persons. NEA-Life dues income is recorded as deferred income when received and amortized using the straight-line method over the estimated life expectancy of its members. Membership Dues - Membership dues are recognized as income over the membership year, which is September 1 through August 31. Dues are assessed to members as provided in the bylaws. An estimated provision for uncollectible receivables, write-offs, and cancellations is charged against membership dues revenues. In accordance with the bylaws, a percentage of the membership dues is allocated to UniServ grants, which are included in NEA s program services expenses, whereby NEA provides grants to state affiliates to assist in funding their staff representatives, whose responsibilities are to implement, improve, and coordinate programs of NEA and the state affiliates. Program Revenue - MBC s program revenues from suppliers represent fees from contracts with various program suppliers. Fees are recognized as revenue in the period in which they are earned. Rental Revenue - NEAPI rents office space to various tenants. Rental revenue from operating leases is recognized on a straight-line basis over the term of the lease. Income Taxes - NEA follows the authoritative guidance relating to accounting for uncertainty in income taxes included in the Accounting Codification Standards (ASC) Topic on Income Taxes. These provisions provide consistent guidance for the accounting for the uncertainty in income taxes recognized in an entity s financial statements and prescribe a threshold of more likely than not for recognition and derecognition of tax positions taken or expected to be taken in a tax return. NEA believes that it has appropriate support for any tax positions taken and, as such, does not have any uncertain tax positions that are material to the financial statements. NEA Form 990, Return of Organization Exempt from Income Tax, for the years 2011 through 2013, are subject to examination by the Internal Revenue Service (IRS), generally for three years after they were filed. Reclassifications - Certain amounts from the prior year have been reclassified to conform with the current year presentation

31 NOTE 3. INVESTMENTS Investments, at fair value, consist of the following at August 31: Equity securities Mutual funds - common stocks $ 16,079,489 $ 17,185,956 Debt securities Mutual funds - fixed income 21,374,107 20,815,571 Exchange traded funds 8,131,902 7,531,437 Total debt securities 29,506,009 28,347,008 Total investments $ 45,585,498 $ 45,532,964 NOTE 4. NOTES RECEIVABLE On May 16, 2009, NEA entered into a long-term promissory note agreement with the Indiana State Teachers Association (ISTA) to provide supplemental support and direct loans. The promissory note was unsecured and bore interest at one half of one percent above the London Interbank Offered Rate (LIBOR) per annum. On January 13, 2014, the promissory note was reduced to $15,000,000 and is payable in full on or before January 1, The new loan bears a fixed interest rate of 2.5%. ISTA will receive an annual discount equivalent to the annual interest accrued if all payments are received by due dates for the fiscal year. As of August 31, 2015 and 2014, the outstanding note balance is $12,500,000 and $13,500,000, respectively. Due to the unsecure nature of the promissory note, NEA recognized an uncollectible allowance of $6,125,680 for fiscal years ended August 31, 2015 and

32 NOTE 5. PROPERTY AND EQUIPMENT Property and equipment consists of the following at August 31: Land NEA headquarters $ 1,753,777 $ 1,753,777 MBC headquarters 837, ,002 NEA Properties 1,943,982 1,943,982 Building improvements NEA headquarters 82,351,581 81,404,694 MBC headquarters 6,510,447 6,508,809 NEA Properties 15,616,118 15,035,654 Furniture, fixtures, and equipment 27,728,691 26,858,270 Software development costs 53,570,369 48,793, ,311, ,135,990 Less: accumulated depreciation and amortization (131,068,728) (126,002,192) Total property and equipment $ 59,243,239 $ 57,133,798 NOTE 6. COMMITMENTS AND CONTINGENCIES MBC leases office space and personal property under noncancelable operating leases expiring through Future minimum lease payments under these leases are as follows: Year Ended August 31, 2016 $ 21, ,796 Total future minimum lease payments $ 27,115 Rental expense for all operating leases was approximately $65,000 and $77,000 for the years ended August 31, 2015 and 2014, respectively. NEA has been named as a party to a legal matter, the outcome of which cannot presently be determined. In the opinion of management, an appropriate provision has been made to account for probable losses and the ultimate resolution of this matter will not have a material impact on NEA s consolidated financial position or changes in net assets and cash flows

33 NOTE 6. COMMITMENTS AND CONTINGENCIES (CONTINUED) The Department of Labor is conducting a review of certain issues surrounding the NEA Members Insurance Plan of which NEA is the sponsor and administrator. The outcome of this review is unknown at this time. NOTE 7. RETIREMENT BENEFITS Employee s Retirement Plan of the National Education Association of the United States - NEA participates in a multiemployer, defined benefit retirement plan for NEA employees that covers substantially all permanent employees. On June 1, 2009, the plan was amended to require employee contributions at a rate of 3.5% for employees hired by NEA on or after June 9, NEA employs approximately 47% of the employees covered under the plan; the remaining 53% are employees of participating state and local affiliates of NEA. NEA contributes to the multiemployer pension plan jointly administered by NEA s management and union representatives. The risk of participating in U.S. multiemployer pension plans is different from single employer pension plans in the following aspects: Assets contributed to the multiemployer plan by one employer may be used to provide benefits of employment to other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. If NEA stops participating in its multiemployer pension plan, it may be required to pay the plan an amount based on the underfunded status of the entire plan. NEA s participation in the above defined benefit plan for the years ended August 31, 2015, 2014 and 2013 is outlined in the following table. All information in the table is as of August 31 of the relevant year unless otherwise noted. The Pension Protection Act (PPA) zone status column ranks the funded status of multiemployer pension plans depending upon a plan s current and projected funding. The zone status is based on information that the NEA received from the plan. Among other factors, the plan is in the Red Zone (Critical) if it has a current funded percentage of less than 65%. A plan is in the Yellow Zone (Endangered) or Orange Zone (Seriously Endangered) if it has a current funded percentage of less than 80%, or projects a credit balance deficit within seven years. A plan is in the Green Zone (Healthy) if it has a current funded percentage greater than 80% and does not have a projected credit balance deficit within seven years

34 NOTE 7. RETIREMENT BENEFITS (CONTINUED) The following table contains information about NEA s multiemployer pension plan for the years ended December 31, 2014 and Pension Fund Employees' Retirement Plan of the National Education Association of the United States EIN/Pension Plan Number Pension Protection Act Zone Status December 31, Contributions to NEA Employer Contributions (Y/N) /31/2015 8/31/2014 8/31/ Green Green $ 19,887,510 $ 19,681,283 $ 21,029,600 Y Y Expiration Date of Collective- Bargaining Agreement AFSE 6/1/2014 to 5/31/2017; IUOE 2/1/2014 to 1/31/2016; NEASO 6/1/2015 to 5/31/2018 NEA currently has no intention of withdrawing from this multiemployer pension plan. NEA 401(k) Retirement Savings Plan - NEA s employees are also eligible to participate in the 401(k) Retirement Savings Plan of the National Education Association (the Plan) in which the employee can make voluntary, tax-deferred contributions within specified limits. The Plan was established under the provisions of Internal Revenue Code Subsection 401(k) and has received a favorable determination as to its tax status. NEA s contributions to the Plan, based on a set percentage of employee contributions, amounted to $896,000 and $539,248 for the years ended August 31, 2015 and 2014, respectively. NEA Postretirement Benefit Plan - In addition to providing pension benefits, NEA provides certain healthcare and life insurance benefits to retirees. Prior to March 1, 2000, NEA provided these benefits under a single employer defined postretirement plan. Effective March 1, 2000, NEA established and adopted the National Education Association and Affiliate Retiree Health Plan (the Plan) and Trust (the Trust) for the purpose of providing certain healthcare and life insurance benefits to eligible and retired employees of NEA and to participating affiliates. The plan is a multiemployer postretirement benefits plan. The Internal Revenue Service has approved the Plan and the Trust. As a result of the adoption of the multiemployer plan, the Trust assumed the responsibility for the payment of benefits and all future obligations under the Plan. NEA s liability under the single employer plan as of March 1, 2000, which amounted to $29,427,901 was recognized as a non-operating charge in NEA s consolidated statement of activities and changes in net assets. As of August 31, 2015 and 2014, none of NEA s net assets were reserved for postretirement benefit obligation. Postretirement benefit expense under the multiemployer plan was $15,385,092 and $18,500,000 for the years ended August 31, 2015 and 2014, respectively

35 NOTE 7. RETIREMENT BENEFITS (CONTINUED) MBC 401(k) Salary Deferral Plan - NEA's Member Benefits Corporation (MBC) maintains a Section 401(k) cash or deferred plan in which the employees can make voluntary, tax-deferred contributions within specific limits. The Plan was established under the provision of the Internal Revenue Code Subsection 401(k), and has received a favorable determination as to its tax status. MBC s contributions to the Plan, based upon a set percentage of employee contributions, amounted to $251,643 and $292,727, for the years ended August 31, 2015 and 2014, respectively. MBC Defined Contribution Plan - MBC maintains a Defined Contribution Plan and Trust, which is noncontributory for MBC s employees, and covers substantially all members of the NEA Staff Organization (NEASO) Collective Bargaining Unit. MBC contributes to the Plan a percentage of compensation as set forth in a collective bargaining agreement with NEASO. MBC s contributions to the Plan during the years ended August 31, 2015 and 2014 were $760,189 and $713,376, respectively. MBC Defined Benefit Plan - MBC maintains a noncontributory defined benefit pension plan covering substantially all employees not covered by a collective bargaining agreement. MBC has an August 31 measurement date for its pension plan. Benefit obligations, plan assets, and the funded status of the Plan at August 31 were as follows: Benefit obligation $ 28,978,747 $ 24,514,664 Fair value of plan investments 40,567,032 42,920,816 Funded status of the plan 11,588,285 18,406,152 The discount rate used in the calculation of the benefit obligation remained at 4.25%. Contributions to the Plan and benefits paid for the year ended August 31 were as follows: Employer contributions $ 909,239 $ 6,743,272 Benefits paid 359, ,079 Amounts recognized in the Statements of Financial Position consisted of: Non-current assets $ 11,588,285 $ 18,406,

36 NOTE 7. RETIREMENT BENEFITS (CONTINUED) Amounts recognized in Accumulated Other Non-Operating Income consist of: Net actuarial loss $ 11,976,023 $ 3,200,885 Prior service cost 2,977,980 3,672,379 Total (before tax effects) 14,954,003 6,873,264 Tax effects (5,743,460) (2,639,849) $ 9,210,543 $ 4,233,415 The accumulated benefit obligation is $26,131,315 and $21,933,192 at August 31, 2015 and 2014, respectively. Net periodic (benefit) cost is ($353,633) and $179,475 for the years ended August 31, 2015 and 2014, respectively. Other changes in Plan assets and benefit obligations recognized in Other Non-Operating Income (before tax effects) were as follows: Net loss $ 8,775,138 $ 399,318 Prior service cost - 2,420,560 Amortization of prior service cost (694,399) (749,878) Total recognized in other nonoperating income $ 8,080,739 $ 2,070,000 Total recognized in net periodic benefit cost and other non-operating income $ 7,727,106 $ 2,249,475 Amounts expected to be recognized in Net Periodic Cost in the coming year are as follows: 2016 Prior service cost recognition $ 694,

37 NOTE 7. RETIREMENT BENEFITS (CONTINUED) Weighted-average assumptions used to determine benefit obligations at August 31 were as follows: Weighted-average assumptions used to determine net periodic benefit cost for the years ended August 31 were as follows: MBC determines the long-term expected rate of return on plan assets by examining historic capital market returns, correlations between asset classes and the Plan s normal asset allocation. Current and near-term market factors such as inflation and interest rates are then evaluated to arrive at the expected return on Plan assets. Peer group, or benchmarking data are also reviewed to ensure a reasonable and appropriate return assumption. MBC utilizes a total return investment approach based on modern portfolio theory. Multiple asset classes are implemented in order to obtain the benefits of diversification and maximize long-term total return for a given level of risk. Risk tolerance is developed by reviewing the funded status of the plan, duration of the plan liabilities, the income and liquidity requirements, legal constraints, and the financial condition of MBC. The investment portfolio is comprised of a diversified combination of equities, fixed income securities, alternative investments, and cash equivalents. MBC s investment policy states that the target allocations for plan assets are 64 percent equity securities, 22 percent fixed income securities, 10 percent alternative investments, and 4 percent cash equivalents. The allocation among equities and fixed income securities is determined by prevailing market conditions and relative valuations between asset classes. The Plan s financial condition is monitored on an ongoing basis by means of quarterly investment portfolio reviews, an annual independent actuarial valuation, and periodic asset/liability studies. Pension plan allocations at August 31 were as follows: Discount rate 4.25% 4.25% Rate of salary increases 4.00% 4.00% Discount rate 4.25% 5.00% Rate of salary increases 4.00% 4.00% Expected long-term rate of return on assets 8.00% 8.00% Equities 62% 74% Fixed income securities 27% 19% Alternative investments 10% 5% Cash equivalents 1% 2% Total 100% 100%

38 NOTE 7. RETIREMENT BENEFITS (CONTINUED) The fair value of MBC s pension plan assets at August 31, 2015 by asset class are as follows (Levels defined in Note 14): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Other Significant Market for Observable Unobservable Identical Assets Inputs Inputs Asset Class Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 402,724 $ 402,724 $ - $ - Equity securities U.S. large-cap 14,462,370 14,462, U.S. mid-cap 2,389,501 2,389, U.S. small-cap 3,234,374 3,234, REIT 1,528,663 1,528, Global equity 814, , International 1,426,007 1,426, Emerging markets 1,413,527 1,413, Other investment funds Equity long/short (a) 2,284,697 2,284, Fixed income securities U.S. fixed income 6,058,035 6,058, International fixed income 4,644,349 4,644, Alternative investments Hedge funds (b) 1,907, ,907,832 $ 40,567,032 $ 38,659,200 $ - $ 1,907,832 (a) This mutual fund class includes funds that by prospectus, has the ability to take both long and short positions within the portfolio. The primary investment vehicle is Exchange Traded Funds (ETFs). The manager of this fund has the ability to rotate investments between various equity styles: value, growth and/or blended, as well as multiple market capitalizations: large cap, mid cap, and small cap. (b) This is a private, commingled investment vehicle which is not registered as an investment company, issues securities only to accredited investors or qualified purchases under an exemption from registration, and engages primarily in strategic trading of securities and other financial instruments

39 NOTE 7. RETIREMENT BENEFITS (CONTINUED) A reconciliation of fair value measurements using significant unobservable inputs (Level 3) as of August 31, 2015 was as follows: Change in Level 3 Category Hedge Funds Beginning balance - 9/1/2014 $ 2,000,000 Net losses (realized/unrealized) (92,168) Ending balance - 8/31/2015 $ 1,907,832 The fair value of MBC s pension plan assets at August 31, 2014 by asset class are as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Other Significant Market for Observable Unobservable Identical Assets Inputs Inputs Asset Class Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 669,945 $ 669,945 $ - $ - Equity securities U.S. large-cap 15,715,764 15,715, U.S. mid-cap 2,359,508 2,359, U.S. small-cap 2,542,411 2,542, REIT 1,868,531 1,868, Global equity 799, , International 3,527,462 3,527, Emerging markets 1,361,589 1,361, Other investment funds Equity long/short (a) 2,359,581 2,359, Multi-strategy mutual fund (b) 1,613,906 1,613, Fixed income securities U.S. fixed income 5,587,422 5,587, International fixed income 2,514,887 2,514, Alternative investments Hedge funds (c) 2,000, ,000,000 $ 42,920,816 $ 40,920,816 $ - $ 2,000,

40 NOTE 7. RETIREMENT BENEFITS (CONTINUED) (a) This mutual fund class includes funds that by prospectus, have the ability to take both long and short positions within the portfolio. The primary investment vehicle is Exchange Traded Funds (ETFs). The manager of this fund has the ability to rotate investments between various equity styles: value, growth and/or blended, as well as multiple market capitalizations: large cap, mid cap, and small cap. (b) This mutual fund class invests in multiple strategies, across multiple asset classes, including but not limited to: global equities, global fixed income, REITS, and commodities, in an effort to diversify risks and reduce volatility. (c) This is a private, commingled investment vehicle which is not registered as an investment company, issues securities only to accredited investors or qualified purchases under an exemption from registration, and engages primarily in strategic trading of securities and other financial instruments. A reconciliation of fair value measurements using significant unobservable inputs (Level 3) as of August 31, 2014 was as follows: Change in Level 3 Category Hedge Funds Beginning balance - 9/1/2013 $ - Purchases 2,000,000 Ending balance - 8/31/2014 $ 2,000,000 The following estimates and assumptions were used to determine the fair value of each class of financial instruments listed above. Cash equivalents - Cash equivalents include cash deposits in investment funds, money market funds, and short-term U.S. Treasury securities, which are actively traded. Cash equivalents are priced using independent market prices in the primary trading market, and are classified as Level l based on the availability of quotes for identical assets. Equity securities - Equity investments include stocks, separately held accounts, and mutual funds. These securities are valued daily based on the quoted market price at the end of the business day. These assets, which are grouped by investment objective, consist of publicly traded securities, diversified globally, and are classified as Level 1. Fixed income securities -These assets include mutual funds with fixed income portfolios. These assets are valued using market prices, such as broker quotes, for the same instruments; as these securities typically traded in active markets, they are categorized as Level l. Alternative investments - Valued based on information provided by Fund manager

41 NOTE 7. RETIREMENT BENEFITS (CONTINUED) For fiscal year 2016, MBC expects to contribute the maximum deductible amount to its pension plan as determined by the January 1, 2015 actuarial valuation. Benefit payments expected to be paid over the next five years and accumulated over the five years thereafter are as follows as of August 31: 2016 $ 595, , , ,066, ,190, ,657,487 NOTE 8. NATIONAL EDUCATION EMPLOYEES ASSISTANCE FUND,INC. The National Education Employees Assistance Fund, Inc. (NEEAF) is a nonprofit corporation established for the purpose of providing financial and other assistance to member organizations and their individual members involved in disputes over terms and conditions of employment. In this capacity, NEEAF, from time to time, has guaranteed loans made by lending institutions to members who were involved in such disputes. These loans are collateralized by letters of credit from those state affiliates that are members of NEEAF. NEA commits the unrestricted resources of the General Operating Fund to fulfill its obligation. NEA s commitment and the state affiliate s line of credit is approximately $6,653,490. In the event of default on a loan, the bylaws of NEEAF provide that the bank shall first draw upon the letter of credit of the state affiliate from which the funds were transmitted and, thereafter, proportionately from all other letters of credit and/or lines of credit. NOTE 9. THE NEA FOUNDATION FOR THE IMPROVEMENT OF EDUCATION The NEA Foundation for the Improvement of Education (NFIE) was created in 1969 by NEA as a tax-exempt public charity to improve the quality of public education in the United States. The NFIE has a separate Board of Directors and operates independently of NEA. Accordingly, the accompanying financial statements do not include the activities of NFIE. The NFIE empowers public education employees to innovate, take risks, and become agents for change to improve teaching and learning in our society. During the years ended August 31, 2015 and 2014, payments totaling $1,886,423 and $1,890,642, respectively, were made to NFIE for an endowment that will help fund programs to meet critical needs of students and education employees in years to come. Such amounts are reflected as reductions in NEA Programs Dues in the consolidated statements of activities and changes in net assets for the years ended August 31, 2015 and

42 NOTE 10. NEA HEALTHY FUTURES NEA Healthy Futures, a legally separate 501(c)(3) not-for-profit organization, was created in 1987 (as NEA Health Information Network) to provide a link between the education and health professions to assure that public school employees and their students have the knowledge and skills necessary to make decisions that enhance the quality of their lives, improve the environment in which they work and learn, and build relationships within the communities they serve. NEA Healthy Futures manages and implements programs that provide health and wellness solutions, advocacy tools, and funding and resource opportunities for NEA members and the education community at large. NEA Healthy Futures secures funds from public and private sources to implement these programs. NEA Healthy Futures establishes collaborative partnerships with other public and private entities to enhance the content and scope of its activities and to bring the education employee/student perspective into the planning and development process of relevant health initiatives at the national, state, and local levels. NEA s appropriations for NEA Healthy Futures for both years ended August 31, 2015 and 2014 were $550,000. NOTE 11. NEA MEMBERS INSURANCE TRUST The National Education Association Members Insurance Trust (NEA-MIT) was organized to provide certain employee welfare benefits to NEA members and their dependents, pursuant to the NEA Members Insurance Plan. NEA is the sponsor and administrator of the welfare plans that NEA-MIT provides. NEA may appoint and remove the trustees of NEA-MIT. NEA-MIT maintains an agreement with MBC to provide administrative and promotional services for the programs. NEA and NEA-MIT have an agreement whereby NEA provided systems administration, maintenance, software development and facilities management in the amount of $598,872 and $527,862 for the years ended August 31, 2015 and 2014, respectively. NOTE 12. INCOME TAXES Under provisions of Section 501(c) of the Internal Revenue Code and the applicable income tax regulations of the District of Columbia, NEA is exempt from taxes on income, other than taxes on unrelated business income

43 NOTE 12. INCOME TAXES (CONTINUED) MBC follows the liability method of accounting for income taxes as required by the FASB Accounting Standards Income Taxes. Income tax expense is recognized based on the amount of income taxes currently payable or refundable plus the net change during the year in the deferred tax liability or asset. The current or deferred tax consequences of all events that have been recognized in the consolidated financial statements are measured based on provisions of enacted tax law. The provision for Federal and State income taxes is included in MBC s support service expenses on the consolidated statements of activities and changes in net assets and consists of the following: Current provision Federal $ 961,835 $ (540,140) State 119,815 (59,040) 1,081,650 (599,180) Deferred provision Federal (326,199) 2,716,291 State (44,236) (277,227) (370,435) 2,439,064 Total $ 711,215 $ 1,839,884 A reconciliation of income taxes at the statutory rate to the provision for income taxes in the financial statements is as follows: Federal income tax provision at the statutory rate $ 532,658 $ 2,099,488 State income tax expense, net of federal benefit 45, ,729 Permanent differences 128,675 (37,668) Temporary differences 4,309 (401,665) Total $ 711,215 $ 1,839,

44 NOTE 12. INCOME TAXES (CONTINUED) At August 31, 2015 and 2014, the deferred tax assets and liabilities represent the tax effects of the following temporary differences: Asset Deferred income $ 867,986 $ - Accrued vacation 277, ,387 Bad debt - 20,517 State taxes 353, ,856 Other 26,539 17,583 Gross deferred tax assets 1,525, ,343 Liabilities Pension costs (4,450,771) (7,069,344) Other (45,861) (41,978) Gross deferred tax liabilities (4,496,632) (7,111,322) Total $ (2,970,934) $ (6,444,979) Amounts recognized in the consolidated statements of financial positions at August 31: Current Deferred tax asset $ 420,244 $ 276,970 Deferred tax liability (45,861) (41,978) 374, ,992 Non-current Deferred tax asset 1,105, ,373 Deferred tax liability (4,450,771) (7,069,344) (3,345,317) (6,679,971) Total $ (2,970,934) $ (6,444,979)

45 NOTE 13. CHANGE IN PENSION OBLIGATION OTHER THAN NET PERIODIC PENSION COST The tax effects allocated to each component of the change in actuarial gain (loss) from the MBC defined benefit plan and other charge for the year ended August 31, 2015 and 2014 are: 2015 Tax Before - Tax (Expense) Net - Tax Amount or Benefit Amount Defined Benefit Pension Plan Net gain (loss) arising during period $ (8,775,138) $ 3,370,312 $ (5,404,826) Less: amortization of prior service cost included in net periodic pension cost 694,399 (266,701) 427,698 Total pension related other nonoperating expense $ (8,080,739) $ 3,103,611 $ (4,977,128) 2014 Tax Before - Tax (Expense) Net - Tax Amount or Benefit Amount Defined Benefit Pension Plan Net gain (loss) arising during period $ (399,318) $ 119,537 $ (279,781) Amendments/prior service cost (2,420,560) 724,601 (1,695,959) Less: amortization of prior service cost included in net periodic pension cost 749,878 (224,478) 525,400 Total pension related other nonoperating expense $ (2,070,000) $ 619,660 $ (1,450,340) NOTE 14. FAIR VALUE MEASUREMENTS Accounting standards for fair value measurements defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. Accounting standards for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. That framework provides a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to measurements involving significant unobservable inputs (Level 3 inputs). The three levels of the hierarchy are as follows: Level 1 - Observable inputs such as quoted prices for identical assets or liabilities in active markets;

46 NOTE 14. FAIR VALUE MEASUREMENTS Level 2 - Inputs other than the quoted prices in active markets that are observable, either directly or indirectly such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable or inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3 - Unobservable inputs in which there is little or no market data, which requires management to develop its own assumptions. The asset s or liability s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to their fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation techniques used for assets measured at fair value: Money market funds -Valued at cost, which approximates fair value. Valuation is from an unadjusted quoted price; Exchange traded funds -Valued at the closing price reported in an active market in which the securities are traded; and Mutual funds - equity and fixed income securities -Valued at trading value on an exchange and is calculated at the end of each business day. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while NEA believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date

47 NOTE 14. FAIR VALUE MEASUREMENTS (CONTINUED) The following table presents NEA s fair value hierarchy for financial assets measured on a recurring basis at August 31, 2015: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Money market funds $ 896,818 $ 896,818 $ - $ - Exchange traded funds 8,131,902 8,131, Mutual funds - equity securities Growth funds 5,492,505 5,492, Value funds 9,314,974 9,314, Blend funds 1,272,010 1,272, Mutual funds - fixed income securities U.S fixed income fund 21,374,107 21,374, $ 46,482,316 $ 46,482,316 $ - $ - The following table presents NEA s fair value hierarchy for financial assets measured on a recurring basis at August 31, 2014: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Money market funds $ 950,996 $ 950,996 $ - $ - Exchange traded funds 7,531,437 7,531, Mutual funds - equity securities Growth funds 6,433,292 6,433, Value funds 9,097,003 9,097, Blend funds 1,655,661 1,655, Mutual funds - fixed income securities U.S fixed income fund 20,346,264 20,346, International fixed income fund 469, , $ 46,483,960 $ 46,483,960 $ - $

48 NOTE 15. DESIGNATED NET ASSETS Designated net assets consist of the following at August 31: Advocacy Fund $ 98,479 $ 8,346,441 National Education Employees Assistance Fund 75, ,045 UniServ Fund 637, ,301 Special Dues Ballot Fund 58,555,032 42,928,322 Special Dues Media Fund 40,019,085 34,476,819 Great Public Schools Fund 4,298,917 4,267,300 Capital Improvement Fund 28,493,324 30,304,170 External Partnership Grants - (12,934) $ 132,177,924 $ 121,075,464 NOTE 16. RENTAL INCOME NEAPI leases office space to various tenants. Certain leases allow for reimbursement of operating costs and/or increase in rent based on increases in real estate taxes and operating expenses. The total rental income for the years ended August 31, 2015 and 2014 were $2,022,676 and $1,893,018, respectively. As of August 31, 2015, the minimum future payments from all non-cancellable leases were as follows: Year Ending August 31, 2016 $ 1,434, ,129, , , ,847 Thereafter 616,062 $ 5,306,217 NOTE 17. SUBSEQUENT EVENTS Management has performed a subsequent event review from September 1, 2015 to December 3, 2015; the date that the consolidated financial statements were available to be issued. This review revealed no new material event or transaction which would require an additional adjustment or disclosure in the accompanying consolidated financial statements

49 SUPPLEMENTAL NOTES AND SCHEDULES

50 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures EXPENSES BY STRATEGIC GOALS AND CORE FUNCTION AREAS Strong affiliates for great public schools 1. Capacity building efforts that seek to achieve the following: $ 342,980 $ 42,094,885 $ 42,437,865 --partner with affiliates to integrate, collect and manage data to identify threats and opportunities --partner with affiliates to achieve financial stability and sustainable fiscal health --partner with affiliates to conduct political, legislative and issue campaigns --jointly implement strategies to align and manage member interactions across the Association --develop and provide strategic research for NEA and affiliates to identify threats and opportunities --develop national communications strategies, resources, and tools to build capacity in state affiliates Total strong affiliates for great public schools 342,980 42,094,885 42,437,865 Uniting the nation for great public schools 1. Educator-Led Student Success 15,875,039 1,595,228 17,470,267 --identify and advance Association-led, student-centered solutions to meet the needs of the whole child --empower educators to become effective instructional, policy, and Association leaders --develop strategies that center on achieving educational equity --create locally-based or state-based campaigns to improve teaching and learning conditions --develop internal and external partnerships to improve the quality of education for all students --connect the dots of the collected Association efforts of affiliates and members --create mechanisms to enhance internal headquarters and field collaboration Total uniting the nation for great public schools 15,875,039 1,595,228 17,470,267 Research, policy and practice 1. Advocate for federal legislation and regulations that enhance student learning and workforce quality 27,388 1,545,920 1,573, Provide resources, technical assistance, and training to affiliates 1,005,858 1,170,608 2,176, Build, maintain, and strengthen partnerships and relationships with external organizations 774, , , Provide research, information and expertise to affiliates, leaders, members and staff 2,266,282 1,411,696 3,677,978 Total research, policy and practice 4,074,464 4,351,685 8,426,149 Organizing 1. Membership and Organizing 61,058,190 41,260, ,318,446 --develop an organizing culture that grows the NEA Membership --develop the necessary skills within our affiliate leaders and staff to thrive as organizers --assist state and local affiliates to develop their capacity and enhance their effectiveness Total organizing 61,058,190 41,260, ,318,

51 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures Advocacy and Outreach 1. Support the Association's efforts to achieve Great Public Schools through federal legislation $ - $ 4,265,785 $ 4,265, Provide legal services and insurance programs to support employees, members, students, state affiliates and external partnerships 31,363,479 10,865,992 42,229, Conduct strategic approach to outreach that leads to meaningful partnerships and organizing opportunities 353,057 9,603,381 9,956, Promote strategies to enhance educator practice and organize, mobilize, and empower educators 763,176 1,710,427 2,473, Support the Association's efforts to achieve Great Public Schools through federal legislation - 475, , Provide technical assistance and support to NEA Leaders to advance policy and practice that supports NEA's mission, vision, and core values 64, , ,705 Total advocacy and outreach 32,544,542 27,227,536 59,772,078 Communications 1. Design, produce, and distribute communications strategies - 491, , Design and execute strategic communication campaigns that advance Association messaging and strengthens the NEA brand - 36,419 36, Provide resources for state-focused paid media campaigns; design and execute special projects, campaigns, and events that strengthen the NEA brand - 5,340,933 5,340, Provide communication capabilities assessment, strategic planning, personnel training, and support for NEA and affiliate organizing campaigns - 597, , Plan and execute strategic communications initiatives for NEA projects 2,336,315 24,538,379 26,874,694 Total communications 2,336,315 31,004,953 33,341,268 ` Business Operations 1. Provide financial and legal support to NEA and affiliate to enhance ability to conduct Association business and meet regulatory requirements 6,504,608 7,887,097 14,391, Provide human resources support to workforce planning and manage human capital operations 5,353,080 1,625,978 6,979, Provide infrastructure and organization support to lead, direct, and align NEA's programs and services 8,238,366 10,295,956 18,534, Provide organization and strategy development by conducting on-going Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis 4,606,949 1,333,455 5,940, Provide technology support to applications, systems, infrastructure and delivery of technology-related products and services for current and future needs of the Association 9,268,480 11,677,237 20,945, Provide facility management, operational support, meeting logistics and print media production 13,610,828 (66,688) 13,544,140 Total business operations 47,582,311 32,753,035 80,335,346 Governance 1. Facilitate and support well-informed decision making by the Executive Officers and Committee, Board of Directors, and Representative Assembly 5,995,017 1,408,025 7,403, Facilitate and support well-informed deliberations of appointed committees and councils 171, , , Provide strong national and global leadership engagement and influence to strengthen NEA's alliances with U.S. and international labor unions 457,820 1,661,519 2,119, Develop and deliver competency-based leadership development 1,245,163 1,518,772 2,763,935 Total governance 7,869,580 4,820,221 12,689,801 TOTAL EXPENDITURES - SUPPLEMENTAL SCHEDULE NOTE 4 $ 171,683,421 $ 185,107,799 $ 356,791,

52 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures (continued) For the Year Ended August 31, 2015 EXPENSES BY STRATEGIC GOALS AND CORE FUNCTION AREAS Chargeable Nonchargeable Total Expenditure Expenditure Expenditures Strong affiliates for great public schools 1. Capacity building efforts that seek to achieve the following: 1.1 Partner with affiliates to integrate, collect and manage data to identify threats and opportunities and to connect and activate our members. $ - $ 2,198,365 $ 2,198, Partner with affiliates to achieve financial stability and sustainable fiscal health through efficient revenue collection systems, timely performance monitoring systems, and effective training for staff, management, and leaders at all levels of the Association. 341, , Partner with affiliates to conduct political, legislative, and issue campaigns that build Association capacity, target areas of greatest threat and opportunity, and seek legislative outcomes that support great public schools and sustainable organizational power. - 37,758,912 37,758, Jointly implement strategies to align and manage member interactions across the Association to increase the quality of member engagement, and member activism on a continuum to increase the depth of relationships between NEA and its members , , Develop and provide strategic research for NEA and affiliates, increasing the capacity to identify opportunities and threats as well as to execute targeted legal, organizing, and political campaigns through an understanding of opponents, partners, and market characteristics. 1,973 1,361,486 1,363, Develop national communications strategies, resources, and tools to build capacity in state affiliates and partner with them in their efforts to conduct political, legislative, and issue campaigns that increase the quality of member engagement and member activism while seeking legislative outcomes that support great public schools, sustainable organizational power, and educate the public about their proactive efforts to support public education , ,413 Total capacity building efforts 342,980 42,094,885 42,437,865 Uniting the nation for great public schools 1. Educator-Led Student Success 1.1 Identify and advance Association-led, student-centered solutions that work (GPS Indicators) to meet the needs of the whole child. Develop implementation strategies in at least 10 affiliates annually. 1,172, ,205 1,439, Empower educators to become effective instructional, policy, and Association leaders. Engage and develop at least 1,000 new leaders each year. 5,857, ,544 6,442, Develop strategies that center on achieving educational equity with a special focus on schools of greatest need. Implement these strategies in at least 20 new schools annually. 537, , , Create locally-based or state-based campaigns in at least 5 state affiliates and 20 local affiliates to improve teaching and learning conditions. 7,423,587 52,347 7,475, Develop internal and external partnerships to improve the quality of education for all students. Develop and/or maintain partnerships with at least five external education-related partners. 578, ,667 1,013, Connect the dots of the collected Association efforts of affiliates and members who are advancing an Association-led, student-centered agenda. 155, , , Create mechanisms to enhance internal headquarters and field collaboration around an Associationled, student-centered agenda. 149,973 39, ,383 Total educator-led student success 15,875,039 1,595,228 17,470,

53 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures (continued) For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures Research, policy, and practice 1. Advocate for federal legislation and regulations that enhance student learning and workforce quality 1.1 Policy Advancement - Advocate for federal legislation and regulations that enhance student learning and workforce quality through good policies and practices. $ 27,388 $ 1,545,920 $ 1,573,308 Total advocate for federal legislation and regulations that enhance student learning and workforce quality 27,388 1,545,920 1,573, Provide resources, technical assistance and training to affiliates 2.1 Affiliate Support - Provide resources, technical assistance, and training to affiliates to support their efforts to achieve improvements in teaching and learning. 1,005,858 1,170,608 2,176,466 Total provide resources, technical assistance and training to affiliates 1,005,858 1,170,608 2,176, Build, maintain, and strengthen partnerships and relationships with external organizations 3.1 Partnerships and Relationships - Build, maintain, and strengthen partnerships and relationships with external organizations to advance NEA's criteria for Great Public Schools and workforce quality agenda. 774, , ,397 Total build, maintain, and strengthen partnerships and relationships with external organizations 774, , , Provide research, information and expertise to affiliates, leaders, members and staff 4.1 Research - Provide research, information, and expertise to affiliates, leaders, members, and staff to support their efforts to improve teaching and learning. 2,266,282 1,411,696 3,677,978 Total provide research, information and expertise to affiliates, leaders, members and staff 2,266,282 1,411,696 3,677,978 Organizing 1. Membership and organizing 1.1 Develop an organizing culture that grows the NEA membership through, data-driven, research-based campaigns in state and local affiliates while testing and assessing strategies for membership growth, member retention, member engagement, and relevance to members and ensuring successful strategies are shared broadly. - 22,372,999 22,372, Develop the necessary skills within our affiliate leaders and staff to thrive as organizers in a changing internal and external environment. 1,799,135 5,724,931 7,524, Assist state and local affiliates to develop their capacity and enhance their effectiveness. 59,259,055 13,162,326 72,421,381 Total membership and organizing 61,058,190 41,260, ,318,446 Advocacy and Outreach 1. Support the Association's efforts to achieve Great Public Schools through federal legislation 1.1 Supports the Association s efforts to achieve Great Public Schools for every student through federal legislation to ensure equity for students who are most in need and support policies to strengthen public schools, colleges, universities, and communities for the children and families who live and go to school there. - 4,265,785 4,265,785 Total support the Association's efforts to achieve great public schools through federal legislation - 4,265,785 4,265,

54 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures (continued) For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures 2. Provide legal services and insurance programs to support employees, members, students, state affiliates and external partnerships 2.1 Enhance collective bargaining and advocacy, with a focus on a student-centered agenda and employee rights, by providing support and technical assistance to affiliates and NEA Departments in the areas of collective bargaining, adequate and affordable health care, retirement security, and equitable and transparent compensation practices that attract and retain a high quality workforce. $ 1,854,775 $ 506,876 $ 2,361, Administer the Unified Legal Services and the Expanded Support to State Affiliate Programs to strengthen affiliate capacity to defend, advocate, and advance the rights of members. 15,772,000 8,419,091 24,191, Administer, enhance, and promote NEA insurance programs that support member recruitment, defend members from false criminal accusations; protect members, leaders, and staff from professional liability lawsuits; minimize the impact of fiduciary losses; and indemnify affiliates against errors and omissions. Negotiate policies that maintain (and increase, where possible) liability and fiduciary protections. 12,693,057-12,693, Promote and support external partnerships that advance NEA s policies on collective bargaining, compensation, health care, and retirement security in order to achieve great public schools for every student. - 76,626 76, Conduct the Human and Civil Rights pre-ra and NEA Board events to address current trends with a direct focus on mobilizing our members and impacting educational equity. 356,501 1,027,026 1,383, Advance NEA s student-centered social and economic justice agenda in public schools through leadership development, policy development and analysis, the development of advocacy tools, and collaboration with external partners and state and local affiliates. 687, , , Support affiliates in identifying and engaging partners within the minority/ethnic community that are immersed in work involving parental engagement and community organizing to move a studentcentered agenda , ,823 Total provide legal services and insurance programs to support employees, members, students, state affiliates and external partnerships 31,363,479 10,865,992 42,229, Conduct strategic approach to outreach that leads to meaningful partnerships and organizing opportunities 3.1 Conduct strategic approach to outreach that leads to meaningful partnerships and organizing opportunities which focus on parents, ethnic/minority communities, and labor to advance our strategic goals, mission, vision, and core values. 353,057 9,603,381 9,956,438 Total conduct strategic approach to outreach that leads to meaningful partnerships and organizing opportunities 353,057 9,603,381 9,956, Promote strategies to enhance educator practice and organize, mobilize, and empower educators 4.1 Through Association-led training and leadership development, promote strategies to enhance educator practice and organize, mobilize, and empower educators to become effective instructional, policy, and Association leaders who improve the outcomes for students in marginalized and underserved populations. 763,176 1,710,427 2,473,603 Total promote strategies to enhance educator practice and organize, mobilize, and empower educators 763,176 1,710,427 2,473,

55 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures (continued) For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures 5. Support the Association's efforts to achieve Great Public Schools through federal legislation 5.1 Support strategies to engage, mobilize, and organize members to advance NEA s student-centered social-economic justice agenda. $ - $ 45,746 $ 45, Support the Association s efforts to achieve Great Public Schools for every student through federal legislation to ensure equity for students who are most in need and support policies to strengthen public schools, colleges, universities, and communities for the children and families who live and go to school there , ,330 Total support the Association's efforts to achieve Great Public Schools through federal legislation - 475, , Provide technical assistance and support to NEA Leaders to advance policy and practice that supports NEA's mission, vision, and core values 6.1 Provide technical assistance and support to NEA leaders to advance policy and practice that supports NEA s mission, vision, and core values. 64, , ,705 Total provide technical assistance and support to NEA Leaders to advance policy and practice that supports NEA's mission, vision, and core values 64, , ,705 Communications 1. Design, produce, and distribute communications strategies 1.1 Design, produce, and distribute communications strategies that engage members and the public to support political and legislative goals that benefit Association members and their students; as well as NEA advocacy campaigns on human rights, social and economic justice , ,881 Total design, produce, and distribute communications strategies - 491, , Design and execute strategic communication campaigns that advance Association messaging and strengthens the NEA brand 2.1 Design and execute strategic communication campaigns that advance Association messaging and strengthens the NEA brand via components developed through the use of up-to-date research, planning, and evaluation data. Strategically and efficiently coordinate deployment of multiple technology tools across various platforms in Raise Your Hand (RYH) campaigns. - 36,419 36,419 Total design and execute strategic communication campaigns that advance Association messaging and strengthens the NEA brand - 36,419 36, Provide resources for state-focused paid media campaigns; design and execute special projects, campaigns, and events that strengthen the NEA brand 3.1 Design and execute special projects, campaigns, and events that strengthen the NEA brand and reputation, and engage members in positive, proactive communication. - 1,229,208 1,229, National communication strategy driven by state communication staff and NEA Communications to include coordination, planning, and orientation with PR Council of the states and the State Education Editors (state communicators) , , Build communication capacity of local Association leaders and staff through training, development, and leadership opportunities , , Provide resources for state-focused paid media campaigns to drive state affiliate and NEA key messages and build the image and reputation of the Association. - 3,658,592 3,658,592 Total provide resources for state-focused paid media campaigns; design and execute special projects, campaigns, and events that strengthen the NEA brand - 5,340,933 5,340,

56 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures (continued) For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures 4. Provide communication capabilities assessment, strategic planning, personnel training, and support for NEA and affiliate organizing campaigns 4.1 Provide communication capabilities assessment, strategic planning, personnel training, product production, campaign execution support, and campaign performance analysis support for NEA and affiliate organizing campaigns. $ - $ 597,341 $ 597,341 Total provide communication capabilities assessment, strategic planning, personnel training, and support for NEA and affiliate organizing campaigns - 597, , Plan and execute strategic communications initiatives for NEA projects 5.1 Communicate the Association's key messages and raise member voices by building and maintaining strong relationships with earned media including print, online, and broadcast news media, education writers and editors, bloggers, and opinion writers. Also provide media training to Association leaders and spokespersons , , Conduct quantitative and qualitative research to shape and inform NEA messaging and communication plans , , Lead and develop message training curriculum for the Association and state affiliates, including development of message guidance for NEA led programs, initiatives, and policies , , Plan and execute strategic communications initiatives for NEA projects, initiatives, and programs by managing multiple tactics including paid media strategic partnerships, sponsorships, and special events across the Center. - 14,984,417 14,984, Provide a full range of conceptual and strategic planning from traditional and interactive design to film, pre and post production as well as using popular culture and the arts as a tool to engage NEA HQ, affiliates, and partners to fund an infrastructure necessary to effectively support mission-critical communications. 974,905 1,282,297 2,257, Plan, develop, produce, and deploy and sustain digital engagement strategies and products in support of NEA strategic priorities. 534,628 1,512,989 2,047, Research, write, edit, design, and provide editorial content in print, digital, and mobile platforms to engage members and communicate Association key messages. 317,147 5,414,873 5,732, Develop and execute strategic communications programs to engage delegates, members and external audiences during the Representative Assembly and provide communications support for internal clients. 509,635 46, ,037 Total plan and execute strategic communications initiatives for NEA projects 2,336,315 24,538,379 26,874,694 Business operations 1. Provide financial and legal support to NEA and affiliate to enhance ability to conduct Association business and meet regulatory requirements 1.1 Systems and Data: Provide ongoing support for NEA and affiliates through the deployment of Association business systems and software applications. 450, ,152 1,017, Promote NEA and affiliate fiscal health through training and advisory services for staff and governance that enhance their ability to conduct Association business and meet regulatory requirements. 4,239,305 5,553,273 9,792, Manage and project the Association s finances by monitoring revenues and expenditures and analyzing factors that affect revenue streams and cause expenditure variances. 546, ,688 1,098, Reduce loss and increase efficiency by executing a comprehensive risk management program that includes audits, compliance monitoring, and information security. 323, ,

57 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures (continued) For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures 1.5 Provide legal advice, counseling, agency fee support and support for the NEA Fund for Children and Public Education and Federal Election Commission matters. $ 945,283 $ 1,213,984 $ 2,159,267 Total provide financial and legal support to NEA and affiliate to enhance ability to conduct Association business and meet regulatory requirements 6,504,608 7,887,097 14,391, Provide human resources support to workforce planning and manage human capital operations 2.1 Workforce planning including position control, recruitment, internships, and Human Resource partner consulting. 1,600,812 1,625,978 3,226, Manage human capital operations including labor relations, payroll, benefits, performance management, and NEA staff s collective bargaining agreements. 3,638,130-3,638, Develop NEA s workplace culture to foster a workforce inspired to achieve NEA's vision and strategy. 114, ,138 Total provide human resources support to workforce planning and manage human capital operations 5,353,080 1,625,978 6,979, Provide infrastructure and organization support to lead, direct, and align NEA's programs and services 3.1 Lead, direct, and align NEA s programs and services by engaging staff and managing resources to effectively advance the Association's strategic goals and core functions. 8,238,366 10,295,956 18,534,322 Total provide infrastructure and organization support to lead, direct, and align NEA's programs and services 8,238,366 10,295,956 18,534, Provide organization and strategy development by conducting on-going Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis 4.1 Facilitate the development of NEA strategy and align both strategy and operations. 3,548,557-3,548, Support the NEA and departments to ensure efficient and effective Administration of resources. 1,058,392 1,333,455 2,391,847 Total provide organization and strategy development by conducting on-going Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis 4,606,949 1,333,455 5,940, Provide technology support to applications, systems, infrastructure and delivery of technology-related products and services for current and future needs of the Association 5.1 Build a solid foundation of IT infrastructure that provides reliable, agile, and flexible IT service choices while optimizing NEA's IT investments. Manage, adopt, and promote the use of using shared, common web-based services, data, and technology architecture and standards to NEA enterprise system/applications, affiliate services, NEA Member Benefits, and external partners. 2,434,443 3,067,123 5,501, Effectively direct resources for overall design, development, modernization, and maintenance of a robust central computing center. Develop an infrastructure flexible enough in its architecture to respond to innovation and the changing needs of the NEA. 2,523,196 3,178,942 5,702, Provide standardization and improve IT Service Level Management for all consolidated and enterprisebased services, to achieve improved service outcomes, meet high-quality service levels, and demonstrate accountability. Adoption of common service management processes, tools and metrics in order to coordinate support, management and reporting. 1,381,576 1,740,629 3,122,

58 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures (continued) For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures 5.4 Secure NEA s IT infrastructure, safeguard the integrity of information resources and privacy of its community. Provide the means to achieve the level of information protection driven by the business needs supported by policies, standards, procedures, and the technical architecture. Define and implement a consistent approach that meets legal and regulatory requirements relating to confidential and/or personal information (PI). $ 261,290 $ 329,196 $ 590, Provide sound information systems featuring a rich set of applications and tools that address the increasing need for more effective and efficient processes and provide for advanced analytics. As applications are either deployed for the first time or replaced they should employ standards-based technologies that will integrate with emerging technologies for continued accessibility. 2,667,975 3,361,347 6,029,322 Total provide technology support to applications, systems, infrastructure and delivery of technology-related products and services for current and future needs of the Association 9,268,480 11,677,237 20,945, Provide facility management, operational support, meeting logistics and print media production 6.1 Implement building projects that improve NEA s infrastructure, and continue to make NEA a green environment. 295, , Manage NEA facilities, business continuity and crisis management, meeting logistics, and print media production. 13,315,096 (66,688) 13,248,408 Total provide facility management, operational support, meeting logistics and print media production 13,610,828 (66,688) 13,544,140 Governance 1. Facilitate and support well-informed decision making by the Executive Officers and Committees, Board of Directors, and Representative Assembly 1.1 Develop 21st century governance: Proactively assess NEA's governance procedures and policies to ensure that the organization has the procedural and structural ability to effectively respond to threats, advance its goals, and operate with maximum efficiency. 180, , , Facilitate and support well-informed decision-making by the Executive Officers and Committees to advance the organization s present and anticipated needs. 2,367,086 1,168,479 3,535, Facilitate and support well-informed decision-making by the Board of Directors that meets the contemporary and future needs of the organization. 2,414,792-2,414, Facilitate and support well-informed decision-making by the Representative Assembly that meets the contemporary and future needs of the organization. 1,009,371-1,009, Innovate operations and manage resources to promote alignment, efficiency and fiscal stewardship; consistently implement governance business policies and practices; and provide a high level of customer service to support an effective governance corps. 22,878 11,646 34,524 Total facilitate and support well-informed decision making by the Executive Officers and Committees, Board of Directors, and Representative Assembly 5,995,017 1,408,025 7,403, Facilitate and support well-informed deliberations of appointed committees and councils 2.1 Facilitate and support well-informed deliberations of appointed committees and councils. 171, , ,485 Total facilitate and support well-informed deliberations of appointed committees and councils 171, , ,

59 National Education Association of the United States and Subsidiaries Supplemental Schedule of Agency Fee Chargeable and Nonchargeable Expenditures (continued) For the Year Ended August 31, 2015 Chargeable Nonchargeable Total Expenditure Expenditure Expenditures 3. Provide strong national and global leadership engagement and influence to strengthen NEA's alliances with US and international labor unions 3.1 Provide strong Association leadership voice and engagement, giving highest priority to those events, topical issues, and relationships that will best advance NEA s goals. $ 457,820 $ 576,801 $ 1,034, Facilitate and support leadership initiatives that strengthen NEA s alliances with U.S. and international labor unions. - 1,084,718 1,084,718 Total provide strong national and global leadership engagement and influence to strengthen NEA's alliances with US and international labor unions 457,820 1,661,519 2,119, Develop and deliver competency-based leadership development 4.1 Leadership Management System and Leadership Competencies - Develop and identify content and experiences that will effectively impart NEA leadership competencies and prepare leaders with the knowledge, skills, and abilities necessary to lead relevant and thriving Associations. Partner with committed affiliates to align competency-based leadership development programming, and leverage collective resources. 270, , , National Leadership Summits: Develop and identify content and experiences that will effectively impart NEA leadership competencies and prepare leaders with the knowledge, skills, and abilities necessary to lead relevant and thriving Associations. 895,210 1,127,863 2,023, Deliver and coordinate competency-based learning opportunities for leaders to ensure that they have the knowledge, skills, and abilities to be effective in the roles in which they serve. Develop and identify content and experiences that will effectively impart NEA leadership competencies and prepare leaders with the knowledge, skills, and abilities necessary to lead relevant and thriving Association. 79,835 50, ,425 Total develop and deliver competency-based leadership development 1,245,163 1,518,772 2,763,935 TOTAL EXPENDITURES - SUPPLEMENTAL SCHEDULE NOTE 4 $ 171,683,421 $ 185,107,799 $ 356,791,

60 NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES AND SUBSIDIARIES NOTES TO SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES FOR THE YEAR ENDED AUGUST 31, 2015 NOTE 1. AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES The National Education Association (NEA) collects agency or service fees from non-members of NEA. These non-members are referred to as "agency feepayers." NEA is required by law to have procedures in effect to determine the amount of its expenditures that can be charged to objecting agency feepayers. The procedures that NEA applies have received the approval of arbitrators, public sector labor boards, and courts. The legal interpretations and standards that NEA currently utilizes to make its determinations of chargeability have been developed by the NEA s Office of General Counsel based on relevant case law. NEA has analyzed its expenditures and determined which of those expenditures were "chargeable" to objecting agency feepayers and which of them were "nonchargeable" to those agency feepayers. Based on relevant federal and state judicial and administrative decisions, it was determined that chargeable activities and expenditures were related to the following matters: 1. collective bargaining; 2. preparations for strikes, and activities undertaken in connection with lawful strikes; 3. contract administration; 4. grievance processing, including arbitration; 5. specific terms and conditions of employment that may be negotiable, such as wages, hours, benefits, working conditions, employment discrimination, promotions, discipline, discharge, retirement benefits, performance evaluation, overtime compensation, environmental issues in the workplace, etc.; 6. communications with bargaining unit members regarding services they receive; 7. professional development (including teacher education, continuing education, and certification), curriculum development and implementation, teaching methods and other instructional skills, information and materials intended for instructional purposes, site-based decisionmaking, and education generally, except to the extent that such activities and expenditures involve lobbying and other political activities, membership organizing or recruitment activities, and/or external public relations;

61 NOTE 1. AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES (CONTINUED) 8. uses of technology in education; 9. publications, portions of publications, or any other communications which involve chargeable issues, such as those related to activities or expenditures listed herein as chargeable, if the publications are provided to agency feepayers; 10. unemployment and job opportunities in education; 11. insurance programs and other benefits for which both members and agency feepayers are eligible; 12. NEA award programs; 13. Association leadership and management skills training and techniques, strategic planning; 14. NEA Representative Assembly, Executive Committee and Board of Directors; and 15. employee relations and NEA staff grievances. It was further determined that nonchargeable activities and expenditures were related to the following matters: 1. lobbying and political efforts before state legislatures, state administrative agencies, Congress, federal agencies or other executive branch officials, and ballot initiatives, as well as any grassroots lobbying activities related to the Great Public Schools Program, unless any of the preceding are specifically related to ratification or implementation of a collective bargaining agreement; 2. external public relations (unless specifically related to collective bargaining or contract administration), American Education Week, National Teacher Day, and any public relations related to the Great Public Schools Program; 3. litigation, unless specifically related to collective bargaining, contract administration or organizational maintenance; 4. voter registration and get-out-the-vote activities for members, and campaign techniques (i.e., training programs designed to prepare leaders, staff and/or members to work with members in support of candidates for any public office); 5. supporting or contributing to charitable, religious or ideological causes (e.g., direct or in-kind contributions to such causes, expenditures designed primarily to assist such causes, and payments to fundraisers for groups which promote such causes);

62 NOTE 1. AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES (CONTINUED) 6. supporting political organizations or candidates for public office (e.g., activities in connection with the endorsement of political candidates, activities in connection with the NEA Fund for Children and Public Education, including its administration, consulting with/or providing training for state/local political action committees); 7. publications, portions of publications or any other communications which involve nonchargeable issues, such as those related to activities or expenditures listed herein as nonchargeable; 8. organizing or recruiting new members, establishing new or expanded bargaining units, organizing and recruitment activities related to the Great Public Schools Program, defending against challenges to exclusive bargaining representative status; 9. various ideological issues unrelated to collective bargaining or organizational maintenance, such as reproductive freedom (including abortion and birth control), anti-flag burning laws, balanced budget amendment, prayer in school, school vouchers, race relations in Africa and Asia, energy conservation, human rights, nuclear arms freeze, child support enforcement, judicial or executive appointments, student scholarships, etc.; 10. illegal job actions and administration of the National Education Employees Assistance Fund; 11. monitoring and opposing activities of groups and individuals whose purpose is to undermine public education; 12. members-only benefits, (e.g., DUES-TAB Insurance); 13. NEA-Retired and NEA Student Program activities; and 14. international relations, the Education International. Expenditures in the following categories were analyzed by examining staff s daily activity reports, vouchers and financial reports, written or audiovisual publications, service or funding agreements, meeting or conference agendas/materials, research surveys, etc., in the context of the criteria listed above: Portions of Strong affiliates for great public schools; Uniting the nation for great public schools; Research, policy and practice; Organizing; portions of categories 2, and 4-6 of Advocacy and Outreach; and portions of categories 5 of Communications. Based upon these analyses, NEA determined which of its expenditures were chargeable and which were nonchargeable

63 NOTE 2. STATE AFFILIATE DETERMINATION OF CHARGEABLE EXPENDITURES The total chargeable and nonchargeable expenditures included in the Affiliate Financial Assistance Program, Small States Foundation Program, Unified State Executive Director Program, Local Presidents Release Time Program, and UniServ Grants Program (all in category 1 of Organizing), and in the Unified Legal Services Program (category 2 of Advocacy and Outreach), have been allocated based on a conservative estimate of the average chargeable percentages reported by the state affiliates for the year ended August 31, That is because, at the time of this audit, state affiliates have not yet completed their own audits for the year ended August 31, State affiliates will subsequently report their respective chargeable and nonchargeable percentages for the year ended August 31, 2015, when complete, audited information is available for them to make such determinations. Therefore, the chargeable and nonchargeable expenditures of those programs listed in this document are estimates for purposes of these schedules and will subsequently be adjusted to actual upon receipt of the chargeable and nonchargeable percentages from state affiliates. The expenditures in category 2 of Advocacy and Outreach include amounts for Educators Employment Liability (EEL) insurance and the Attorney Referral Program (ARP), which are not provided to agency feepayers in some states. For purposes of this presentation, the EEL-related and ARP-related expenditures have been treated as chargeable; however, in the states where either the EEL insurance or ARP is not provided to agency feepayers, the expenditures will be considered nonchargeable. NOTE 3. OVERHEAD FUNCTIONS The expenditures in the following Strategic Goals and Core Function Areas are considered programmatic in nature: Strong affiliates for great public schools; Uniting the nation for great public schools; Research, policy and practice; Organizing; Advocacy and Outreach; and Communications. The expenditures in the following Strategic Goals and Core Function Areas are considered support or overhead: Portions of Strong affiliates for great public schools; portions of category 5 of Communications; Business Operations; and Governance. In view of this relationship, management believes it is fair and reasonable to allocate the expenditures in the support or overhead areas by the percentage determined as chargeable for the programmatic activities, but only after specific clearly chargeable or clearly nonchargeable expenditures have been separated and treated as fully chargeable or nonchargeable, respectively. The support or overhead expenditures, which are considered clearly chargeable, are as follows: Strategic Goal 1 Strong Affiliates for great public schools 1. Provide financial training, technical assistance and managerial support to NEA and affiliates Tactic 1.2 Affiliate support and association fiscal health $ 341,

64 NOTE 3. OVERHEAD FUNCTIONS (CONTINUED) Core Function Area 5 Business Operations 1. Provide business systems, legal, and financial expertise to NEA and affiliates Tactic 1.3 Agency fee activities $ 107,614 Tactic 1.4 Internal audit/risk management 323,564 Tactic 1.5 Agency fee support legal 47, Manage employee benefits and services, labor relations, and workforce costs Tactic 2.1 Workforce planning, position control 834,361 Tactic 2.2 Human capital, labor relations, payroll 3,638,130 Tactic 2.3 Morale management and skills development 114, Provide departmental infrastructure and business intelligence systems that align with NEA s strategic goals and core functions Tactic 3.1 Infrastructure support 1,337, Sustain NEA as a high-performance learning organization and archive its records for current and future generations Tactic 4.1 Operational review/swot analyses 3,548, Provide facility management, operational support, and meeting logistics Tactic 6.1 Building projects 295,732 Tactic 6.2 Facilities management, operational support 13,315,096 $ 23,562,065 Core Function Area 6 Governance 1. Provide support to governance and the NEA policy making process Tactic 1.2 Executive committee $ 1,439,639 Tactic 1.3 Board of directors 2,414,792 Tactic 1.4 RA strategic and advisory committees 1,009,371 Tactic 1.5 Minutes and proceedings 13, Competency-based leadership development Tactic (G) workshop 39,680 $ 4,917,

65 NOTE 3. OVERHEAD FUNCTIONS (CONTINUED) The support or overhead expenditures that are considered clearly nonchargeable are as follows: Strategic Goal 1 Strong affiliates for great public schools 1. Provide financial training, technical assistance and managerial support to NEA and affiliates Tactic 1.1 Enterprise data system $ 1,169,744 Core Function Area 4 Communications 5. Communication Operations Tactic 5.1 Metrics analysis $ 88,586 Tactic 5.3 Message and intel development 161,964 Tactic 5.5 Branding standards 54,027 Tactic 5.6 Communications digital audit 14,274 $ 318,851 Core Function Area 5 Business operations 1. Provide business systems, legal, and financial expertise to NEA and affiliates Tactic 1.2 PAC compliance systems $ 212,227 Tactic 1.5 FCPE policy support services 83, Manage employee benefits and services, labor relations, and workforce costs Tactic 2.1 Workforce planning, position control 660, Provide departmental infrastructure and business intelligence systems that align with NEA s strategic goals and core functions Tactic 3.1 Infrastructure support 1,601, Provide facility management, operational support, and meeting logistics Tactic 6.2 NEA HQ leased spaces (66,688) $ 2,490,236 Core Function Area 6 Governance 2. Facilitate and support well-informed deliberations and appointed committees and councils Tactic 2.1 Committees and Councils $ 15,

66 NOTE 3. OVERHEAD FUNCTIONS (CONTINUED) 3. Provide national and global leadership engagement Tactic 3.2 Alliance with national and international labor unions $ 1,084,718 $ 1,100,452 NOTE 4. RECONCILIATION OF TOTAL EXPENSE TO AUDITED FINANCIAL STATEMENT EXPENSES The following is a reconciliation of the total expenses in this schedule to the total expenses as reported in NEA s audited financial statements: Total expenses (included on page 5) $ 395,303,133 Expenses included in this report, but eliminated through consolidation in the audited financial statements 13,801,807 Expenses not included in this report, but included in expenses of the audited financial statements: Member Benefits Programs (50,486,850) NEA Properties (1,826,870) $ 356,791,220 For purposes of this schedule, the chargeable and nonchargeable expenditures of the remaining support or overhead areas are based upon a chargeable percentage figure that has been derived from the chargeable programmatic activity expenditures as they appear elsewhere in the schedule. Because, as explained in Note 2, the chargeable percentages for some programmatic activities will vary from state to state in accordance with certain specific expenditures of those state affiliates, the chargeable and nonchargeable expenditures of those remaining support or overhead areas are not final. Once NEA receives the appropriate information from the state affiliates, it will calculate a final chargeable programmatic activity percentage for each state affiliate and then use that percentage to allocate the expenditures in the remaining support or overhead areas. Consequently, new NEA total chargeable and nonchargeable expenditures will result for each state affiliate. * * * * *

67 GREAT PUBLIC SCHOOLS FOR EVERY STUDENT NEA STRATEGIC PLAN AND BUDGET PRESENTED TO THE REPRESENTATIVE ASSEMBLY JULY 2016

68 National Education Association The National Education Association is the nation s largest professional employee organization, representing 3 million elementary and secondary teachers, higher education faculty, education support professionals, school administrators, retired educators, and students preparing to become teachers. NEA Executive Officers Lily Eskelsen García, President Rebecca S. Pringle, Vice President Princess R. Moss, Secretary-Treasurer John C. Stocks, Executive Director Reproduction: No part of this report may be reproduced in any form without written permission from NEA, except by NEA affiliated associations and members. Address inquiries to NEA Executive Office, th St., N.W., Washington, DC ; (202) Published June 2016 Copyright June 2016 by the National Education Association All Rights Reserved

69 GREAT PUBLIC SCHOOLS FOR EVERY STUDENT NEA STRATEGIC PLAN AND BUDGET PRESENTED TO THE REPRESENTATIVE ASSEMBLY JULY 2016

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71 Table of Contents The NEA Vision, Mission, and Values... 1 Introduction... 3 Report of the Program and Budget Committee Strategic Goals and Core Functions... 6 Budgeted Full Time Equivalent Members and Revenue... 7 Goals Shared Tactics... 9 Goal #1 (Strong Affiliates for Educator Voice and Empowerment) Goal #2 (Empowered Educators for Successful Students) Core Function 1 (Research, Policy, and Practice) Core Function 2 (Organizing) Core Function 3 (Advocacy and Outreach) Core Function 4 (Communications) Core Function 5 (Business Operations) Core Function 6 (Governance) Budget Financial Line Item Definitions Total Budget Comparisons by Line Item Appendices Appendix A: Recoveries Appendix B: Highlights of The NEA Foundation s Programs Appendix C: Governance Appendix D: How Your Dues Dollars are Allocated Active Teaching Professionals Appendix E: How Your Dues Dollars are Allocated Education Support Professionals Index iii

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73 The National Education Association Vision, Mission, and Values Adopted at the 2006 NEA Representative Assembly Lily Eskelsen García President Rebecca S. Pringle Vice President Princess R. Moss Secretary-Treasurer John C. Stocks Executive Director THE NATIONAL EDUCATION ASSOCIATION We, the members of the National Education Association of the United States, are the voice of education professionals. Our work is fundamental to the nation, and we accept the profound trust placed in us. OUR VISION Our vision is a great public school for every student. OUR MISSION Our mission is to advocate for education professionals and to unite our members and the nation to fulfill the promise of public education to prepare every student to succeed in a diverse and interdependent world. OUR CORE VALUES These principles guide our work and define our mission: Equal Opportunity. We believe public education is the gateway to opportunity. All students have the human and civil right to a quality public education that develops their potential, independence, and character. A Just Society. We believe public education is vital to building respect for the worth, dignity, and equality of every individual in our diverse society. Democracy. We believe public education is the cornerstone of our republic. Public education provides individuals with the skills to be involved, informed, and engaged in our representative democracy. Professionalism. We believe that the expertise and judgment of education professionals are critical to student success. We maintain the highest professional standards, and we expect the status, compensation, and respect due all professionals. Partnership. We believe partnerships with parents, families, communities, and other stakeholders are essential to quality public education and student success. Collective Action. We believe individuals are strengthened when they work together for the common good. As education professionals, we improve both our professional status and the quality of public education when we unite and advocate collectively. 1

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75 The Strategic Plan and Budget Introduction The Strategic Plan and Budget represents a significant and deliberate shift in focus for the organization towards greater support and investment in local and educator level initiatives that involve collaboration with critical stakeholders to push up on the system to impact practice and policy at the district, state, and national levels. While the need for pro-public education politicians to implement appropriate public policy continues to exist, we believe that emphasis on empowered educators truly capitalizes on our greatest asset, our members, and provides them with something they all seem to agree is needed: greater educator decision making in schools and districts. The environment surrounding public education, its educators, and the organizations that represent them has changed drastically in the last decade. NEA has monitored these changes through our SWOT analysis, completed every two years to examine the internal and external forces affecting public education, the national organization, and its network of state and local affiliates with the goal of understanding capabilities, configuring them to successfully meet the challenges of the environment, and shaping the short and long term strategy. These analyses have highlighted how political, legal, and economic threats, coupled with an institutionalized education reform agenda that favors a corporate model, have created an environment that minimized educator voice and involvement in decisions about teaching and learning and prompted membership losses for the education Associations. As we evaluated our internal capabilities as well as the external opportunities and threats, two main issues emerged. One, the need to win the race to capture the hearts and minds of parents, communities, and educators; the other was the importance of re-building the Association s strength our vast network of members at all levels of the public education system. These principles guided the development of the Strategic Plan and Budget. Thwarting the threats while simultaneously seizing the opportunities in these trends, led the NEA to move towards a more grassroots approach that authentically involves educators in the decisions required to shape teaching and learning and encourage parents, and communities to join with educators so they can win together for the sake of the students and America s future. This approach is rooted in strong evidence that educators are the true experts on the needs of their students, and if they are empowered to shape learning for their students and to collaboratively develop studentcentered school plans, the best of educators professional practices can be elevated to shape district, state, and federal policies. The opportunity is for NEA and affiliates to facilitate and catalyze these efforts by being the vehicle that reflects the collective voice of educators through the development of structures and processes that engage and involve educators in the decisions that drive public education. An innovative and aligned strategic plan and budget To advance the empowerment concepts, the NEA Board of Directors adopted two Strategic Goals and six Core Functions that work together within the Strategic Plan to: 1) Secure opportunities, in partnership with state and local affiliates, for empowered educators to transform the conditions of teaching and learning in collaboration with each other, parents, and communities; engage and deepen relationships with educators as they embark on the quest to shape the future of learning to assure student success; and harness our collective power to grow Association membership and strength while thwarting attacks on member rights and union strength. 2) Focus on enhancing the quality of education professions by supporting development across professional continuums and preparing educators for empowered roles in the curation, identification and elevation of professional practices that work, the achievement of educational opportunity and equity, the advancement of national, state, and district level policies, and the creation of solutions designed to improve student outcomes. 3

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77 Report of the Program and Budget Committee The Program and Budget Committee ( the Committee ) is recommending a proposed Strategic Plan and Budget for that reflects NEA s commitment to its mission, vision, and core values. The Strategic Plan and Budget is organized around two Strategic Goals that seek to achieve a specific, focused set of results that can be accomplished and measured in a given period of time and six Core Functions that represent the ongoing work of the Association. The Committee held engagements on the Strategic Plan and Budget at the National Council of State Education Associations (NCSEA), the National Council of Urban Education Associations (NCUEA), the Education Support Professional, Higher Education, and Retired conferences. Input was received from the NEA Board of Directors, the Student Program, appointed committees, caucuses, the participants at the National Leadership Summit and of course, individual members. All of the input and recommendations were carefully considered and used by the Committee as they reviewed the tactics, activities and proposed resource allocation developed by senior directors and their staff and designed to achieve the strategic goals and the necessary core functions of the organization. It should be noted that many items in the budget are based on policies or mandates as set by the Board of Directors, the Representative Assembly, or the Constitution and Bylaws. It has been the Committee s task to assign financial resources to accomplish these policy directives, as well as to respond to the immediate and long-range needs of the Association. As we embark on the Strategic Plan and Budget, NEA s external operating environment continues to be challenging. With anti-union sentiments remaining strong, numerous state legislatures are considering bills that would directly impact payroll deduction, agency fee and/or collective bargaining and directly affect our economic stability by diminishing our ability to enroll members and collect dues. Public education itself also remains under assault, particularly from efforts that tend to blame rather than support educators and to embrace alternatives that transfer public funds to private hands. In the midst of this, our educators struggle to make a difference by doing what they know is necessary to educate their students and to meet the increased expectations to strengthen educational outcomes in an environment of diminished resources. The Committee has taken this environment seriously and has ensured that the proposed budget reflects the realities of our current economic conditions while at the same time focusing on and enhancing our greatest asset, our members. The Strategic Goals address two immediate challenges to ensure student success: (1) Ensure Strong Affiliates capable of setting the stage for Educator Voice and Empowerment; and (2) Ensure that our educators have what they need to be able to lead the transformation of teaching and learning to assure student success. The Core Functions address key, ongoing programs and services essential to NEA and our work. They are: (1) research policy and practice to provide a quality education for all students; (2) partnering with state affiliates to provide programs that increase organizing and the capacity for membership growth, retention, and engagement; (3) advocacy for public policy, social justice, and pro-public education candidates, member advocacy support, and outreach and partnership development particularly in ethnic minority communities; 4) communication strategies to engage members and the public; (5) business operations that ensure an efficient and effective infrastructure; and (6) effective leadership and decision making to advance the organization s mission and vision. The budget allocates funding to state and local affiliates in the form of UniServ grants, Unified Legal Services grants, and other project funding totaling $136,424,667 (38% of the budget) in and , respectively. Chairperson Vice Chairperson Members: Princess Moss, Secretary-Treasurer Becky Pringle, Vice President Joshua Brown, Director for Iowa Britt Hall, Director for Wisconsin Rae Nwosu, ESP Director At-Large Robert Rodriguez, Director for California Amy Simpson, Director for Wyoming 5

78 FY NEA Strategic Goals and Core Functions Strategic Goals 1) GOAL 1: Strong Affiliates for Educator Voice and Empowerment. 2) GOAL 2: Empowered Educators for Successful Students NEA will partner with state and local affiliates to strengthen their organizational capacity to: secure opportunities for empowered educators to transform the conditions of teaching and learning through supportive policies, practices, and structures; engage and continually deepen relationships with and relevance to members; and grow Association membership and strength while thwarting attacks on member rights and union strength. In partnership with state and local affiliates and parents and communities, NEA will enhance the quality of education professions by supporting the development of educators across their professional continuums for empowerment roles that elevate the quality of professional practice, shape the future of teaching and learning, achieve educational opportunity and equity, advance national, state, and district level policies, and create solutions designed to improve student outcomes. Core Functions 1) Research, Policy, and Practice for Great Public Schools In partnership with state and local affiliates and allied organizations, NEA will research and synthesize key learnings to develop, identify, and implement national, state, and district policies that facilitate successful practices and models for teaching and learning that promote student success. 2) Organizing In partnership with state and local affiliates, parents, and communities, NEA will organize to grow and strengthen our Association at all levels in order to improve student outcomes, secure the proper teaching and learning conditions, and achieve educational opportunity and equity for all students. 3) Advocacy and Outreach NEA and its affiliates, in partnership with parents, communities, and allied organizations, will advocate educators views to national, state, and district policymakers, stakeholders, and the public to advance policy that achieves equity of opportunity, access, and excellence for students in public education; promotes social, economic, and racial justice for America s students and their families; and secures members rights and greater empowerment as experts to determine and shape optimal conditions for teaching and learning. 4) Communications NEA will utilize the best communication strategies to advance the organization s mission and vision by understanding key audiences, engaging state and local affiliates, members, partners, parents and communities, coordinating message development and delivery across the Association, and enhancing the Association s brand and reputation. 5) Business Operations NEA will administer and support business operations across the Association and its affiliates in a manner that supports the changing needs and priorities of the organization by ensuring efficient and effective infrastructure and sound fiscal management, leveraging technology, and strengthening the Association s human capital. 6) Governance NEA will develop and maintain leadership development and decision-making structures and processes across the Association and its affiliates that clearly advance the organization s mission and vision. 6

79 Budgeted Full Time Equivalent Members and Revenue Proposed Proposed Members Active Teaching Professionals 1,720,000 1,720,000 Active Education Support Professionals 300, ,000 Active Life 40,200 40,200 Agency Fee 31,000 31,000 Retired Annual 97,000 97,000 Retired Life 215, ,000 Subscriber 13,000 13,000 Reserve and Staff 3,600 3,600 Student 54,000 54,000 Total Members 2,473,800 2,473,800 Revenue Active Teaching Professionals $ 321,640,000 $ 323,360,000 Active Education Support Professionals 34,050,000 34,350,000 Active Life Agency Fee 5,797,000 5,828,000 Retired Annual 2,910,000 2,910,000 Retired Life 1,000,000 1,000,000 Subscriber 65,000 65,000 Reserve and Staff 295, ,000 Student 810, ,000 Subtotal $ 366,567,200 $ 368,620,000 Other Income and Adjustments 590, ,000 NEA Foundation Endowment Fund (1,902,800) (1,902,800) Total Revenue $ 365,254,400 $ 367,307, Dues Determination (Proposed) The average annual salary of classroom teachers, as determined by NEA research, is projected to be $58,064 and the average annual salary of education support professionals, as determined by NEA Research is estimated to be $32, Dues Determination (Proposed) The average annual salary of classroom teachers, as determined by NEA research, is projected to be $58,645 and the average annual salary of education support professionals, as determined by NEA Research is estimated to be $32,512. Based upon these average salaries, the dues for will be: Active Teaching Professionals $ $ Active Education Support Professionals Retired Annual Reserve and Staff Subscriber Student Dues allocation to UniServ

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81 Goals Shared Tactics: This work embodies an innovative approach designed to ensure synergy across NEA s goals, Strong Affiliates for Educator Voice and Empowerment and Empowered Educators for Successful Students, and will be accomplished jointly under the collaborative leadership of both Goals Lead Directors. Achieving NEA s goals requires certain foundational elements. Highlighting their interrelated nature, efforts to assure that this foundation exists are reflected in the Strategic Plan and Budget as shared tactics. This means that their execution and monitoring are the joint responsibility of the Lead Directors for the goals. Organizing for Educator Empowerment: An organizing culture that engages educators in the use of collective power to create opportunities for educators voices to be elevated on issues that matter to them, and to increase their decision making authority is critical to achieving NEA s goals. With an eye towards the future, this area emphasizes supportive work with educators at the earliest point in their career that demonstrates how indispensable and valuable the association can be throughout their professional continuum. Coalition Building: Collaboration between educators, with parents and community groups, and other education stakeholders is a key element in assuring that students succeed. Therefore, the facilitation of coalitions and partnerships that support increasing educator voice and influence on decisions related to teaching and learning will be the priority of this area. Methodologies to track return on investment for collaborative efforts will assure continual improvement. Advancing the Empowered Educators Narrative: Communicating the impact of educator empowerment on student success in an effective manner will facilitate receptivity to the concepts. This area, in partnership with affiliates, will develop message strategies and train messengers to engage internal and external stakeholders and shape the national and local narrative that students have better outcomes and public education has a stronger impact when educators are empowered to make decisions about teaching and learning. Data, Research and Strategic Listening: Recognizing that affiliates must have access to good data to be successful, considerable effort is being devoted to developing a system for integrating and managing data to support the identification of threats and opportunities and to enhance effectiveness in member engagement. The system resulting from this work will integrate multiple data sources to create a dynamic view of members, potential members and other targeted audiences. It will support efforts to grow membership, and obtain member, voter, and activist engagement, provide efficient business transaction management tools, easy search capabilities and it will facilitate the collection of new data. Careful attention is being paid to system adoption process. Training and networking to share best practices will support the integration of NEA360 into existing and future affiliate programs. 9

82 Goals Shared Tactics 1 Organizing for Educator Empowerment Building for the Union s Future: Engaging and Recruiting Educators at the $ 5,800,000 $ 5,800,000 earliest point in their careers. Create a comprehensive digital organizing and engagement platform that promotes the education professions, provides professional supports to early career educators, and provides avenues to move members from on line to off line engagement. Develop and deliver pedagogical, social justice, and job family specific professional development that responds to what early career educators articulate they need to be successful in their careers. In partnership with state and local affiliates, launch Back to School engagements (July 1-November 15) whose goal, through a distributive leadership model, is to ensure that every new educator is engaged in a meaningful one on one conversation with an identified member of the union that collects a uniform set of data points as well as asks the new educator what s/he needs to be successful in her/his career. Using traditional and non-traditional strategies, identify diverse pool of professional practice leaders to lead in providing early career supports, ESSA implementation and combating institutional racism. 2 Partner with affiliates to create a culture of organizing that uses collective 812, ,262 action to create opportunities for our members to elevate their voices and increase their decision-making authority on the issues that matter to them, and that helps members see these opportunities as a value of association membership. Train, support, and partner with affiliates to implement and articulate increased opportunities for educators to participate in policymaking (e.g., through ESSA-related committees) as a benefit of association membership. Train, support, and partner with affiliates to implement and articulate professional supports (e.g., programming for early career educators, National Board certification support, leadership training, etc.) as a value of association membership and combine them with organizing efforts. Train, support, and partner with affiliates to implement and articulate their collaboration with districts and other stakeholders around teaching and learning issues as a benefit of association membership, and combine this work with organizing efforts. 3 Partner with affiliates to align and manage member interactions across the 178, ,640 Association to increase the quality of member engagement and member activism, increase the depth of relationships between the Association and its members, and educate potential members about the value they can secure by joining their colleagues as Association members. Support affiliates in using member data to plan or offer targeted engagement opportunities. Community partner data-share at the local level. 10

83 Goals Shared Tactics 1 Organizing for Educator Empowerment Promote and increase utilization and awareness of digital strategies to $ 204,264 $ 205,986 meet organizational goals. Develop unified and aligned content strategies, digital engagement standards and enterprise tools and platforms for online organizing, advocacy and professional collaboration, for NEA and its affiliates. Provide technical assistance and training for NEA and SEA staff and leaders to use these digital engagement best practices, strategies and tools. 2 Coalition Building 1 Partner with affiliates to support Association and member led initiatives 1,972,833 1,996,722 that involve key education stakeholders (particularly administrators, family, community) to assure quality public educational options for all students, with a special emphasis on schools of greatest need, and to create and develop coalitions and partnerships that will advocate for, support, and encourage educator voice and influence in teaching and learning decisions. Develop and track a return-on-investment (ROI) measure that takes educator empowerment support into account; assessing increase in educator voice and influence on teaching and learning. Develop and/or support partnerships around federal and state policy implementation (e.g., ESSA) that increase educator voice and influence in teaching and learning. Develop and/or support partnerships around issues of social justice, with special attention toward addressing institutional racism, decreasing opportunity gaps, and improving student outcomes in disadvantaged communities. Develop and/or support partnerships that will improve professional skills and prepare educators to have greater voice, influence, and decisionmaking authority on issues of teaching and learning. 3 Advancing the Empowered Educators Narrative 1 Partner with affiliates to develop message strategies and train messengers 325, ,481 to engage internal and external stakeholders and shape national and local narrative on students having better outcomes and public education having a stronger impact when educators are empowered to make decisions about teaching and learning. Develop and refine a public messaging plan that demonstrates to stakeholders the positive impact on students, schools, and communities when educators are empowered to make decisions about teaching and learning. Provide aligned message and media training for local affiliates around NEA s strategic goals and support these affiliates in implementing the messaging plan. 11

84 Goals Shared Tactics 4 Data, Research and Strategic Listening Partner with affiliates to integrate, collect, and manage data to support $ 7,735,803 $ 7,828,550 strategic decision making and to connect our members to the association, to each other, and to education stakeholders. Adoption Manage the enterprise adoption process in collaboration with state affiliates to ensure successful implementation of NEA360. Analytics and Innovation Build an analytic infrastructure and platform and create NEA and affiliate staff capacity to use analytics to more effectively understand our members needs, advance organizational goals, and to provide additional value to membership. Build broad, integrated digital strategy in support of an overall communication s plan that advances organization s priorities and uses NEA360 tools in innovative ways and supports digital engagement systems. Conceive, build, deploy, and adopt an enterprise data system (EDS) that will integrate its multiple data sources to create a dynamic view of members, potential members, and other targeted audiences to grow membership, and member, voter, and activist engagement to achieve the strategic goals of the Association. Engagement Collaborate with NEA360 team and SEAs to routinely provide information about project and exchange feedback about implementation. Learning Design, implement, and continually refine a learning program and content development to assure the successful adoption of NEA360 technology, collaborating closely with state affiliates. Product Strategy Manage the product life cycle as a multi-disciplinary effort with continuous oversight and management and continue to develop work process mapping and procedures to inform the product development. State Affiliate Assessment and Adoption Implement, manage, and deliver state affiliate assessment, adoption, training, and support programs User Support Design a process to effectively and efficiently address user needs; assess the issues/problems that arise to determine appropriate resolution. 2 Effectively collect, analyze, synthesize, data and research aligned to the 4,192,053 4,231,867 strategic research plan and collaborative strategy process to support NEA s strategic goals and inform program and policy. Compile, synthesize, analyze, and distribute data from external resources to inform NEA strategies and programs. Conduct qualitative and quantitative research and studies with NEA members and other groups to inform NEA programs and policy. Maintain partnerships and relationships with research organizations focused on topics aligned with NEA s policy and advocacy work. Monitor and assess the quality of member engagement efforts along a continuum and ensure that they are part of a continuous organizing process that builds lasting relationships between NEA, affiliates, and members contributing to the collective power of the union at all levels through key elements of an effective member engagement program. Review and synthesize scholarly and think-tank research to inform NEA strategies and programs. 12

85 Goals Shared Tactics 4 Data, Research and Strategic Listening Ensure that strategic listening to key audiences including NEA members $ 426,855 $ 431,589 and other groups (e.g., the public and opinion leaders) which is aligned to the strategic research plan and collaborative strategy process informs and drives NEA and affiliate engagement and advocacy strategies. Draft, field and analyze research designed to influence key target audiences, including, but not limited to parents and opinion leaders regarding their attitudes to help drive strategic planning and tactical execution to lift the image of the education professions, about NEA, members, education, and NEA s commitment to student success and share that information with state affiliate communication staff to help inform collaborative campaigns. Draft, field, and analyze quantitative and qualitative research on behalf of state affiliates and for NEA and share that information across the larger NEA enterprise to build and update comprehensive shared polling warehouse for common questions, trend analysis and shared findings. Direct Cost: 10,265,053 10,265,053 Personnel Cost: 11,383,416 11,565,044 Total: $ 21,648,469 $ 21,830,097 13

86 Goal 1: Strong Affiliates for Educator Voice and Empowerment NEA will partner with state and local affiliates to strengthen their organizational capacity to: secure opportunities for empowered educators to transform the conditions of teaching and learning through supportive policies, practices, and structures; engage and continually deepen relationships with and relevance to members; and grow association membership and strength while thwarting attacks on member rights and union strength. While the Strong Affiliates goal was originally conceived of as a defensive strategy in response to an onslaught of attacks from opponents, the future opportunities surrounding this work are steeped in our ability to turn defense to offense. Through some of the most challenging of battles, we built strength in key organizational elements, giving greater voice to our members and providing the space for educators and community-led solutions to strengthen America s public schools. In the next two years, the Strong Affiliates Goal will continue to work toward the establishment of power through campaigns and advocacy and to develop and secure opportunities to reflect educators views in decisions related to teaching and learning. Campaigns and Advocacy: All of the work in this area seeks to partner with and support affiliates in achieving the resources and capabilities they need to accomplish their goals independently. Targeted political, legislative, and issue campaigns are conducted in this area, and seek outcomes that increase educator involvement in teaching and learning decisions, promote educational equity, address institutional racism, and increase sustainable organizational strength. Campaign strategies will be supported by national positions and messages that educate the public about the Association s proactive efforts to support public education. NEA, in collaboration with its affiliates, will leverage our combined communications apparatus to drive high-impact messages to critical audiences. A research component is included to provide intelligence to support offensive and defensive campaigns and to assess education markets in terms of reporting requirements, and statutory and regulatory issues. Collaborative Structures for Empowerment and Student Success: Sustainable educator empowerment is supported by the existence of structural elements that codify the inclusion of educator voice and engagement in the decisions that affect teaching and learning. Work in this area seeks to expand these structures. Of particular interest is leveraging the many provisions of the Every Student Succeeds Act that encourage implementation to include the development of processes, regulations, policies and joint committees that ensure meaningful and lasting educator involvement through their associations. Fiscal Health: Affiliate financial stability and sustainable fiscal health are essential foundations of the organization s power to improve America s public school system. Work in this area seeks to ensure that all affiliates have efficient revenue collection systems, timely performance monitoring systems, and effective training for staff, management and leaders. It also seeks to encourage proactive analyses of benefit plans and employee contracts to ensure long-term sustainability. 14

87 Goal 1: Strong Affiliates for Educator Voice and Empowerment 1 Campaigns and Advocacy Partner with affiliates to advance political, legislative, and issue campaigns $ 35,853,373 $ 35,998,844 that secure educator voice and influence in teaching and learning decisions, target areas of greatest threat and opportunity, and seek political and legislative outcomes that support great public schools and sustainable organizational power Presidential and State Elections Plan, support, and execute campaigns with metrics and mobilization strategies that meet Association goals. Campaigns to thwart attacks on educator empowerment Target legislative crisis and ballot measure assistance to defend and bolster traditional union values (e.g., collective bargaining rights), support strong unions, affiliates, and public education. Develop and execute a comprehensive policy advocacy program to take advantage of the opportunities in the Every Student Succeeds Act (ESSA) to enact student-centered, educator-developed policies at the state and local levels that leverage the voice and expertise of members and affiliate leaders that support teaching and learning. (e.g., ESSA mandates for decisionmaking committees at state and local levels that include educators) In collaboration with NEA affiliates and centers, unite and develop an audience of activists and spokespeople in the fight for public education by developing powerful narratives on issues of shared Association priorities from the perspective of students, educators, parents, and education stakeholders that inspire meaningful actions in support of legislative, issue, and electoral advocacy. Member Engagement Identifying and sharing best practices and the tools to support and facilitate member engagement (PAC, Campus Program, Candidate Recruitment). Opposition Research Produce research reports and actionable information for NEA and affiliates to utilize in offensive and defensive campaigns and manage strategic research projects. Support PAC Council in decision making and building strength as one national political force. 15

88 Goal 1: Strong Affiliates for Educator Voice and Empowerment 2 Collaborative Structures for Empowerment and Student Success Partner with affiliates to recognize, develop and secure opportunities to $ 329,909 $ 335,074 codify the incorporation of educator voice in decisions related to teaching and learning, including through laws, policies, coalitions (state and local), agreements, site/district leadership teams and joint committees of practitioners. Prepare affiliates to practice proactive problem solving and joint learning with partners (e.g., GPS Indicators Toolkit, National Collaborative Co-Sponsors, NICs). Strengthen cross-center, multi-level ESSA implementation team to provide technical assistance, expertise, and materials in support of affiliates work establishing themselves as the lead partner in collaborative state and local ESSA implementation efforts (including training, webinars, stakeholder conversations, online PD, funding for training hubs around ESSA-related collaborative opportunities, grants for affiliates to build association value stream using ESSA-related opportunities, policy advocacy, and direct member touches to brand increase in educator voice opportunities as an NEA s victory). 3 Fiscal Health 1 Partner with affiliates to achieve financial stability and sustainable fiscal 536, ,003 health through efficient revenue collection systems, timely performance monitoring systems, and effective training for staff, management, and leaders at all levels of the Association. Improve capacity to provide analysis, monitoring, and reporting on the membership, economic, and financial indicators required to determine the current and future viability of an affiliate. Fully develop point-in-time and longitudinal reporting that includes documented baseline standards to assist report users in interpreting the reported data. Provide direct technical and managerial support to NEA and affiliates to enhance the financial and economic skills of staff, management, and leaders throughout the enterprise. Deliver affinity group training, provide networking opportunities to share best practices, and oversee and support NEA Trusteeships and Financial Oversight Committees. Provide state affiliates with objective analysis of existing employee benefit plans and recommend changes that improve the effectiveness, efficiency, and sustainability of employee contracts. Investigate possible group benefit plans with multiple affiliates sharing in lower benefit costs and reduced administration fees. Conduct an examination of the best combination of benefits to ensure NEA and affiliates attract and retain highly skilled new employees. Direct Cost: 28,389,884 28,389,884 Personnel Cost: 8,330,082 8,488,037 Total: $ 36,719,966 $ 36,877,921 16

89 Goal 2: Empowered Educators for Successful Students In partnership with state and local affiliates and parents and communities, NEA will enhance the quality of education professions by supporting the development of educators across their professional continuums for empowerment roles that elevate the quality of professional practice, shape the future of teaching and learning, achieve educational opportunity and equity, advance national, state, and district level policies, and create solutions designed to improve student outcomes. Work in this area focuses on partnerships with affiliates to assure leader and member readiness to provide high quality instruction, to lead collaborative initiatives and to provide relevant educator-led, association-branded programs and tools for every phase of the educator career continua, with emphasis on high impact transition points. Information on the most promising models for comprehensive induction, professional development, networking teams, mentoring, etc. will be gathered here and best practices will be documented, with the goal of encouraging their spread. This area focuses on building awareness of the detrimental impact unconscious bias has on educators relationships and effectiveness with their students and includes programs to address institutional racism. Efforts to transform schools also are housed in this goal. Educator Development for Practice and Leadership: Efforts in this area will be directed to assuring quality professional practice among educators through Association-convened, educator-led initiatives, that are useful throughout the entire educator career continua, with emphasis on preparation and readiness of early career educators. Affiliate Strength for Professional Practice and Growth: This area seeks to support affiliate efforts to assure quality professional practice and growth across the career continua. Student-Centered Policy and Practices: Work to engage members in assuring quality public education for all students through Association-led school improvement and student-centered policies and practices. Readying Educators for Empowerment: This area focuses on improving member capacity to raise their voices and participate in the decision making processes that shape teaching and learning. 17

90 Goal 2: Empowered Educators for Successful Students 1 Educator Development for Practice and Leadership Partner with affiliates to assure quality professional practice among $ 11,575,493 $ 11,629,719 educators through Association-convened, educator-led initiatives, with emphasis on preparation and readiness of early career educators. Based on a mapping of the educator career continua, where high leverage transition points have been identified, provide relevant educator-led, affiliate branded programs and tools for every phrase of the educator career continua, with emphasis on high impact transition points. Build affiliate capacity and expertise to create and/or expand educatorled, affiliate-branded programs that shape educators professional practice bullying, ELL, LGBTQ and sexual harassment/safety and bias (Best practice, whole student, Leadership for Tomorrow, and ESP conference). Build affiliate capacity and expertise to create and/or expand educatorled, affiliate-branded programs that shape educators professional practice bullying, ELL, LGBTQ, and sexual harassment/safety and bias. Build affiliate capacity and expertise to create and/or expand educator-led, affiliate-branded programs that shape educators professional practice in the areas of cultural competence, diversity, and social justice with the goal of counteracting the impact of institutional racism. Collect and synthesize effective approaches and encourage implementation of promising models re: comprehensive induction programs, professional development, networking teams, and mentoring. Prepare affiliates to support state and local leader readiness, along with member readiness, to lead collaborative initiatives through the use of the GPS Fund program. 2 Affiliate Strength for Professional Practice and Growth 1 Partner with affiliates to improve affiliate capacity for assuring quality 4,499,575 4,538,310 professional practice and growth across the career continua (antiprivatization, ESP of the year and professional development). Prepare affiliates to support state and local leader readiness, along with member readiness, to lead collaborative initiatives. Support for affiliates leading district programs that impact teaching and learning. 3 Student-Centered Policy and Practices 1 Partner with affiliates to engage members in assuring quality public 2,679,399 2,717,272 education for all students through Association-led school improvement and student-centered policies and practices. Support for community schools model implementation. Technical assistance for school transformation. Technical assistance to local affiliates participating in school transformation. 18

91 Goal 2: Empowered Educators for Successful Students 4 Readying Educators for Empowerment Partner with affiliates to improve member capacity to raise their voices $ 307,246 $ 311,119 and participate in education decision making. Training for affiliate leaders on professional issues organizing 2 Partner with affiliates to enhance educator awareness of the impact of institutional racism on educator practice and student outcomes. 1,376,769 1,389,251 Support for affiliates in raising awareness of the detrimental effects of institutional racism, the ways that unconscious bias impacts educators relationships with their students, and the ways that our schools perpetuate social injustice, as first steps in an ongoing effort to address institutional racism and counteract its effects on students and communities. Training and facilitating support for affiliates to develop and implement plans to decrease the negative impact of institutional racism in classrooms and schools. Direct Cost: 12,958,437 12,958,437 Personnel Cost: 7,480,045 7,627,234 Total: $ 20,438,482 $ 20,585,671 19

92 Core Function 1: Research, Policy, and Practice In partnership with state and local affiliates and allied organizations, NEA will research and synthesize key learnings to develop, identify and implement national, state, and district policies that facilitate successful practices and models for teaching and learning that promote student success. The work of this Core Function is designed to focus on areas relevant to NEA s goals and deliver vital, ongoing analyses directly linked to providing policy, practice, and research strategies/support to undergird efforts to create a great public school for every student. Recognition as an effective advocate for the education profession requires the development and application of quality research. Understanding our members hopes, desires, and needs will enable us to be more relevant to their work lives. Focusing on workforce quality and supports that facilitate educator empowerment will allow us to create the conditions for great public schools. And, having the work examined through a student-centered lens, will position educators to be true leaders of their own profession. Policy Advancement: Work in this area supports association efforts to advocate for federal and state legislation and regulations that promote policies and practices to enhance educator empowerment, student learning and workforce quality. Information and Expertise: This area provides information and expertise in a vast array of areas by providing research, information, and expertise to affiliates, leaders, members, and staff to support the efforts to improve teaching and learning. 20

93 Core Function 1: Research, Policy, and Practice 1 Policy Advancement Analyze federal legislation and regulations that enhance educator $ 464,983 $ 473,591 empowerment, student learning, and workforce quality through good policies and practices. Advocate and provide information and technical assistance for affiliates to ensure that they are positioning the association and its members to take advantage of state- and district-level policies that provide opportunities to increase educator voice and empowerment. Analyze federal legislation and regulations to advance federal public policy that is in alignment with GPS Criteria and Indicators and with NEA positions. 2 Information and Expertise 1 Provide research, information, and expertise to affiliates, leaders, members, 979, ,290 and staff to support their efforts to improve teaching and learning. Coordinate the activities of the Early Childhood Education Leadership Cohort (ECELC) to provide early language, mathematics, and science literacy and early childhood policy trainings to affiliates and members. Provide support for NEA s Individuals with Disabilities Education Act (IDEA) efforts to enhance technical assistance, materials, and resources for affiliates and NEA members. Provide technical assistance, policy analysis, materials, and information to state and local affiliates, and host or participate in NEA and affiliate meetings to gather and share information. Respond to requests for statistics and other information from affiliates, leaders, and other departments. Support affiliates, leaders, and other departments by distributing and processing pre-made surveys (e.g., OpScan, UniServ), and consulting on research and evaluation activities. Direct Cost: 322, ,979 Personnel Cost: 1,121,446 1,144,902 Total: $ 1,444,425 $ 1,467,881 21

94 Core Function 2: Organizing In partnership with state and local affiliates, parents, and communities, NEA will organize to grow and strengthen our Association at all levels in order to improve student outcomes, secure the proper teaching and learning conditions, and achieve educational opportunity and equity for all students. An engaged and growing membership contributes to our collective power and ability to positively influence the conditions under which students learn and our members work. NEA must be relevant to our members professional lives to ensure continued and growing membership and sustained organizational capacity. Membership and Organizing: This area is laser focused on figuring out how to grow membership. Their plans are to use member and leader engagement, technical assistance and research-based campaigns that are engineered to add to our knowledge about what works. Specific attention is placed on educator voice and empowerment, facilitating educator designed and developed practices and policies that improve the quality of education for all students, developing and supporting the implementation of alternative dues collection options, and developing models for new and nontraditional membership types. Affiliate capacity also is addressed through the leadership and staff development initiatives and assistance provided to state and local affiliates. UniServ Program: Administers the UniServ Grant Program and provides training to UniServ staff and UniServ managers. Regional Offices: Coordinates program delivery and facilitate dialogue between NEA and affiliate leaders. Regional Directors are also responsible for supervising organizing projects and staff assigned to them. Constituent Support: Provides program support to the National Council of Urban Education Associations and under the direction of the Executive Director of the National Council of State Education Associations, supports the NCSEA Board by providing trainings and conferences as well as confidential support to affiliate leaders. NEA Student Program: Responsible for student organizing and administering the student program through conferences, training, and support to state affiliates. Conferences and Trainings: Conducts the following conferences: NEA Higher Education, NEA Retired, NEA Student, and Summer Leaders. In addition, the Center delivers the following trainings: Emerging Leaders and UniServ. 22

95 Core Function 2: Organizing 1 Membership and Organizing Identify and develop workplace leaders through Engagement Unionism. $ 14,957,155 $ 15,110,587 Providing them with opportunities to engage, organize, and mobilize colleagues around self-identified issues that support educator voice and empowerment. Develop an organizing culture that increases NEA membership through engagement and growth strategies. ESSA field implementation through regional support, targeted projects and engagement with grassroots partners. Identify existing organizing best practices through multiple vehicles that include webinars, regular reporting, use of documentary video, and crosstraining of staff and leaders in active organizing sites. In collaboration with the Center for Great Public Schools, incubate and assess professional issue campaign organizing projects to demonstrate membership growth strategies. Maintain dedicated organizing committees and task forces among NCSEA, NCUEA and other groups in order to foster two-way communication between NEA s work and that of affiliates and locals. Support state and local affiliates scratch organizing campaigns of new units with particular attention to charter schools and higher education. Use research and data analytics to inform targeting of resources and drive resources toward organizing campaign efforts most likely to succeed and also design and implement procedures for measuring the progress and outcomes of the Center s work at targeted sites based on precise goals and regular reporting of progress. Utilize and continue to refine best practices to support state and local affiliates who have lost or are in danger of losing payroll deduction or agency fee with alternative dues collection. Working in partnership with NCUEA, create opportunities for sharing strategies, resources, and programs that support and foster the successful implementation of the NEA-NCUEA shared priorities and partners with NCUEA to lead in a culture of organizing and demonstrating successful approaches to organizing at the local level. 23

96 Core Function 2: Organizing 1 Membership and Organizing Develop and train necessary skills for affiliate leaders and staff to thrive as $ 5,923,165 $ 5,973,951 organizers. Design and deliver executive leadership development opportunities for NCSEA that identify critical issues, management development, leadership development, and related competencies and skills that support the president and executive director to successfully fulfill their roles. Coordinate affiliate leadership conference/trainings (Collective Bargaining, Fall/ Summer Leaders, Affiliate Financial Health). Design and deliver organizing training for state affiliate staff through the UniServ Academy, UniServ Managers meeting, and staff training cadres based on the UniServ Core Competencies. Provide technical and conceptual training in data systems/analytics and social media skills to NEA and affiliate staff and leaders using multiple vehicles. Regional and state based training opportunities designed to scale up access to and acquisition of membership engagement (Education Summer). Support and deliver member conferences and trainings (ELA, Higher Education, and Retired). Utilize local training venues that support local/state team structures with an emphasis on organizing campaigns and core competencies model that includes follow up groundwork to increase capacity. Deliver local presidents organizing training to increase their capacity to organize and lead members. 3 Develop digital and social media engagement models and opportunities 3,578,324 3,623,084 targeting incoming and existing early career educators, engaging them around professional growth and education justice. Develop bridge (software) from student teaching to active membership. Develop ESSA implementation targeting young member engagement around issues meaningful to them such as closing the achievement gap, college affordability, and income equality. Early career educator leadership development by partnering with school districts and local associations. Student bridge to NEA membership. Design and implement strategic outreach/organizing efforts to graduating seniors. Partnering with local universities for research based campaigns to include issues meaningful to them such as closing the achievement gap, college affordability, and income equality. Coordination of the Student Conference and Grant program. 24

97 Core Function 2: Organizing 1 Membership and Organizing Partner with state and local affiliates to develop and expand their capacity $ 77,406,626 $ 77,469,458 and enhance their effectiveness. Develop and implement an enterprise wide system to detect emerging threats and opportunities which could affect multiple affiliates and assess affiliate and NEA capacity to respond. Administer the National Education Employees Assistance Fund (NEEAF). Intervene in state affiliates to provide strategic facilitation for leader/staff/ team development. Leverage Association impact, grow, and deepen affiliate capacity through the administration of policies and guidelines and disbursement of funds for the Affiliate Financial Assistance Program (AFA). Leverage Association impact, grow, and deepen affiliate capacity through the administration of policies and guidelines and disbursement of funds for the Local President Release Time Program (LPRTP). Leverage Association impact, grow, and deepen affiliate capacity through the administration of policies and guidelines and disbursement of funds for the Small States Foundation Program. Leverage Association impact, grow, and deepen affiliate capacity through the administration of policies and guidelines and disbursement of funds for the Unified State Executive Director Program (USEDP). Leverage Association impact, grow, and deepen affiliate capacity through the administration of policies and guidelines and disbursement of funds for the UniServ Fund Program. Provide coordination through policy application, adherence to guidelines and financial allocation to the Center s state and local project programs, develop an enterprise wide system that will provide disbursement, tracking, and assessment functionality to the Association while providing a single point of contact for affiliates seeking membership, engagement, and/or organizing opportunities. Strengthen NEA and affiliate partnership through on-going communication, coordination, resources, and support. Working in partnership with NCSEA, create opportunities for inter-state sharing of strategies, resources, and programs that support and foster the successful implementation of the NEA-NCSEA shared priorities. Direct Cost: 82,909,695 82,909,695 Personnel Cost: 18,955,575 19,267,385 Total: $101,865,270 $102,177,080 25

98 Core Function 3: Advocacy and Outreach NEA and its affiliates, in partnership with parents, communities, and allied organizations, will advocate educators views to national, state, and district policymakers, stakeholders, and the public (with priority focus on parents, ethnic minority communities, and labor partners) to advance policy that achieves equity of opportunity, access, and excellence for students in public education; promotes social, economic, and racial justice for America s students and their families; and secures members rights and greater empowerment as experts to determine and shape optimal conditions for teaching and learning. The work in Advocacy and Outreach will be prioritized in large part to achieve the Strong Affiliates and Empowered Educators Goals and to support state and local affiliates. The priorities of the ongoing work of Advocacy and Outreach will be driven by our need to ensure that our members have a voice in their workplace and in education policy-making arenas; the need to empower educators around areas of professional practice and the promotion of social justice for students; the need to create a movement which puts students and their families at the center of an agenda to create Great Public Schools for Every Student, and the equally urgent need to promote economic and social justice to help close income gaps and opportunity gaps in education. Advocacy: Supports the Association s efforts to improve public education through federal, state, and local (in partnership with affiliates) advocacy, coalition building, and outreach as well as the Association s social and economic justice advocacy in collaboration with partners. Advocacy Tools and Technical Assistance: This area provides tools, support, technical assistance and legal services to affiliates seeking to mobilize to promote policies and strategies to improve teaching and learning conditions, educational outcomes, and to advance our members rights and voices. Assistance is provided in the form of policy analysis, model legislation or policy, sample contract or school policy language, other advocacy tools, and technical assistance. Outreach: This area focuses on fostering partnerships with parents, families, communities, and other stakeholders, that are essential to quality public education and student success. Collaboration with outside organizations about social justice and civil rights issues, member rights and community issues, particularly in minority and ethnic communities, is housed in this Core Function. Leadership Development: This area provides leadership development training that is aligned with and in addition to the NEA Leadership Competencies to specific constituencies (women and ethnic minorities) among our membership to better equip them to be activists, organizers, and leaders to improve the outcomes for students, particularly in marginalized and underserved populations. Member Engagement and Outreach: This area provides training and strategies to engage, mobilize, and organize members to advance NEA s student-centered social-economic justice agenda and supports the Association s efforts to achieve Great Public Schools through advancing federal legislation which promotes educational equity for all students. Governance Support and Engagement: This area provides technical assistance and support to NEA leaders to advance policy and practice that supports NEA s mission, vision, and core values. 26

99 Core Function 3: Advocacy and Outreach 1 Advocacy NEA s Government Relations department supports the Association s efforts $ 2,348,342 $ 2,383,418 to achieve Great Public Schools for every student through federal legislation to ensure equity for students who are most in need, empower educators to have a voice in the policies that affect them and their students and support policies to strengthen public schools, colleges, universities, and communities for the children and families who live and go to school there. Advance and pass pro-public education legislation and policy at the federal level, including within the Administration, which maintains a federal focus on students most in need (i.e. high-poverty, special education, ELL), empower educators to directly share the successes, challenges and needs of their schools and students, and promote student centered social and economic justice causes. Prevent anti-working family legislation from passing at the federal level, including threats to retirement and economic security, collective bargaining, privatization and secure funding to address inequities for public K 12 and higher education including empowering educators to directly share how such legislation would impact their students, their families and/or their communities. Provide legislative intent, training, strategy and technical assistance around NEA s ESSA implementation efforts. Provide technical assistance to NEA state affiliates on their legislative advocacy at the state level. 27

100 Core Function 3: Advocacy and Outreach 2 Advocacy Tools and Technical Assistance Enhance collective bargaining and advocacy, with a focus on a student- $ 2,793,109 $ 2,834,866 centered agenda and employee rights, by providing support and technical assistance to affiliates and NEA Departments in the areas of collective bargaining, adequate and affordable health care, retirement security, and equitable and transparent compensation practices that attract and retain a high quality workforce. Advance student-centered bargaining and advocacy through grants, technical assistance, and advocacy tools for state and local affiliates. Develop and provide proactive approaches to protecting and defending public pensions and public educator retirement security through technical assistance and training to affiliates and NEA departments; monitor and report on member retirement plans. Lead NEA work on local-level bargaining and policy advocacy to implement ESSA in a manner that empowers educators across their careers and achieves the schools our students deserve. Maintain, update and disseminate tools used to track collective bargaining developments and assist local affiliates in achieving bargaining and local advocacy goals; assist affiliates with bargaining strategies; provide technical assistance and training on bargaining and advocacy approaches to selected public policy, legislative, and contract issues, including advocating with or without agency fee. Provide technical assistance and training to affiliates on compensation practices, including salary/living wage campaigns, alternative compensation arrangements, and NEA compensation applications; track and maintain information on alternative compensation programs and the teacher salary database. Provide technical support and training to affiliates and NEA departments on health care benefits and health care laws impacting members, and work to implement federal health care reform in accordance with NEA policy. Solicit and administer funding to create formal union-management partnerships across districts and in schools that foster greater collaboration among educators and engage parents and the community. Develop and disseminate tools and provide technical assistance and provide training on implementing and sustaining collaborative practices. 2 Administer the Unified Legal Services (ULSP) and the Expanded Support of 23,903,934 23,914,694 State Affiliate (ESSA) Programs to strengthen affiliate capacity to defend, advocate, and advance the rights of members. Administer the Expanded Support of State Affiliates (ESSA) program. Investigate the feasibility of integrating this NEA board approved program into the ULSP. Administer the Unified Legal Services Program (ULSP) and the NEAfunded legal cases (Federal Appeals, Significant Litigation, and Catastrophic Assistance) programs by performing site visits and on-line audits to verify compliance with the NEA board approved guidelines. Timely response to affiliate and member requests and appeals for review of denial of legal services. 28

101 Core Function 3: Advocacy and Outreach 2 Advocacy Tools and Technical Assistance Administer, enhance, and promote NEA insurance programs that support $ 13,419,517 $ 13,429,853 member recruitment, defend members from false criminal accusations; protect members, leaders, and staff from professional liability lawsuits; minimize the impact of fiduciary losses; and indemnify affiliates against errors and omissions. Negotiate policies that maintain (and increase, where possible) liability and fiduciary protections. Administer the Association Professional Liability (APL) program; respond to all affiliate and staff questions regarding eligibility determinations; and provide fiduciary oversight of all negotiated policies and contracts. Administer the Attorney Referral Program (ARP); respond to all affiliate and law firm questions regarding participation and benefits; and maintain listing of all participating law firms on NEA.org. Administer the Educators Employment Liability (EEL) program; respond to all affiliate and member questions regarding eligibility determinations; provide fiduciary oversight of all negotiated policies and contracts; and perform comparative analyses of similar programs offered by competing organizations. Administer the Fidelity Bond (FB) program; respond to all affiliate and staff questions regarding fiduciary loss claims; and provide fiduciary oversight of all negotiated policies and contracts. Provide technical and business expertise to ITS to upgrade/replace existing legacy systems; participate in any request for proposal (RFP) activities to replace end-of-life software; and perform testing and quality assurance activities to ensure efficient and responsive software systems that meet the needs of affiliate staff. Maintain and support the software systems that underpin the ULSP, ESSA, EEL, APL, FB, and ARP systems (DLMS, ebilling, York Import, Cognos Web Reporting, and ARP Access). Provide technical assistance to affiliate users with access issues, functionality questions, customized report generation, and staff training that supports program administration. Deliver program updates and training to stakeholders. 4 Promote and support external partnerships that advance NEA s policies on 510, ,779 collective bargaining, compensation, health care, and retirement security in order to achieve great public schools for every student. Participate in, represent NEA at, and ensure NEA policy goals are furthered with external partners in the health care, public pension, and economic justice arenas. 5 Conduct the Human and Civil Rights pre-ra and NEA Board events to address current trends with a direct focus on mobilizing our members to impact racial, social and economic justice for educational equity. 1,572,751 1,584,157 Conduct NEA Board Observances and connect the work of the Observances to addressing institutional racism. Conduct the NEA Joint Conference on Concerns of Minorities and Women and the Ethnic Leaders Meeting with a continued increased focus on developing activists in the organization to be leaders on racial, social, economic and environmental justice in and out of the Association. Hold the Annual Human and Civil Rights Awards Dinner to honor heroes for social justice, economic justice and institutional racism. 29

102 Core Function 3: Advocacy and Outreach 2 Advocacy Tools and Technical Assistance Advance NEA s student-centered social, racial, and economic justice agenda $ 1,553,066 $ 1,571,143 in public schools through leadership development, policy development and analysis, the development of advocacy tools, and collaboration with external partners and state and local affiliates. Develop strategic content partnerships with LGBTQ, anti-bullying, dropout prevention, women s minority, and social justice organizations to position NEA as a leader in human and civil rights and social, racial and economic justice. Enhance and expand the BullyFree It Starts with Me campaign. Provide assistance and support to affiliates through advocacy language, policy briefs, analysis, advocacy tools/resources and messaging on critical civil rights and social and economic justice issues, such as institutional racism and ending the school to prison pipeline 7 Support affiliates in identifying and engaging partners within the ethnic/ minority community (communities of color) that are immersed in work involving parental engagement and community organizing to move a student-centered and racial, social and economic justice advocacy agenda. 1,281,868 1,297,146 Partner with affiliates to build state and local capacity to develop innovative and strategic outreach strategies and community conversations between educators, parents, and community stakeholders to raise educators collective voices with the community around a social, racial and economic justice agenda that is student centered. Partner with affiliates to enhance member advocacy by hosting collaborative joint advocacy strategy sessions between national, state, and local partners with NEA leaders and member activists to plan and implement strategies around NEA organizational priorities (i.e. ESSA, institutional racism, and others) and other opportunities to advance a student-centered agenda. Partner with state and local affiliates to organize in communities of color to increase student achievement, engage communities of color (parents and community stakeholders) and build union roles at the state and local level for community engagement to build capacity to aggressively push a student-centered agenda. With a focus on targeted areas and communities most effected by inequity, identify, train and develop member activists at the state and local level to progress community conversation into relevant community action; securing opportunities for student success and racial, economic and social justice. Eventually creating a train the trainer model for community engagement to build state and local capacity. 30

103 Core Function 3: Advocacy and Outreach 3 Outreach Conduct an Association-wide strategic approach to outreach that leads to $ 7,342,669 $ 7,354,936 meaningful partnerships and organizing opportunities which focus on racial, social and economic justice, and student success that engages parents, ethnic/minority communities, progressive communities, and labor coalitions to advance our strategic goals, mission, vision, and core values. Assist NEA affiliates, with a particular focus on state and local leaders, to enhance and learn from their member engagement and organizing initiatives to deepen or create partnerships around minority community outreach and engagement, including assessing gaps in affiliates partnerships and outreach efforts, as well as supporting and enhancing MLTP and WLTP graduates and other identified member activists to organize in communities around social, racial and economic justice issues such as institutional racism. Conduct joint advocacy with partner organizations around shared core values and advocacy priorities, particularly those priorities which impact poor students and their families, as well as marginalized student populations impacted by institutional racism. This includes monitoring trends and providing leadership regarding the human and civil rights issues facing minority and/or marginalized students. Identify and enter into partner agreements with entities that will assist in achieving NEA s strategic goals and provide technical assistance to local affiliates to engage minority communities; including engaging them on racial, social and economic justice issues. Identify and enter into partner agreements with entities that will assist in achieving NEA s strategic goals and provide technical assistance to local affiliates to engage minority communities. Identify new and potentially impactful organizations and entities, as well as identify trends in outside organizations advocacy, organizing, civic engagement, communications, or research strategies which may impact NEA s work. Partner with national, state, and local partners on ESSA implementation to influence public policy at the state and local level in support of a social, racial and economic justice agenda that is student centered. 31

104 Core Function 3: Advocacy and Outreach 4 Leadership Development Mobilize and empower educators through Association-led leadership $ 2,260,913 $ 2,271,673 training and development to become effective Association advocates and leaders who advance the social, racial and economic justice. Coordinate the engagement of HCR State Coordinators to support greater connection to the human and civil rights and social economic justice work occurring at the national, state, and local level. Provide diversity, social justice, and cultural competence training to assist the Association, leaders and members. The Minority and Women s Leadership Training programs prepare early career educators and emerging leaders to be powerful advocates for their students, their profession, and their Association. The hands-on training curriculum teaches participants foundational leadership skills, the logistics of running for elected office, and how to advocate for student-centered policies and social justice issues that impact their schools and communities. 5 Member Engagement and Outreach 1 Support strategies to engage, mobilize, and organize members to advance 197, ,254 NEA s student-centered social-economic justice agenda. Create and maintain a database to facilitate the implementation of an engagement program with the goal of identifying, educating, and mobilizing member activists and organizers. 2 NEA s Government Relations department supports the Association s efforts 901, ,797 to achieve Great Public Schools for every student through federal legislation to ensure equity for students who are most in need, empower educators to have a voice in the policies that affect them and their students and support policies to strengthen public schools, colleges, universities, and communities for the children and families who live and go to school there. Enhance the capacity and strength of NEA s federal advocacy by building off of the successful member advocacy efforts during ESEA, engaging directly with members through digital advocacy and creating a structure for more lasting engagement on behalf of pro-public education and student-centered social and economic legislation. 32

105 Core Function 3: Advocacy and Outreach 6 Governance Support and Engagement Provide technical assistance and support to NEA leaders to advance policy $ 704,204 $ 717,114 and practice that supports NEA s mission, vision, and core values to advance a racial, social and economic justice agenda. Provide research, resources, counsel and expertise to NEA Governance leaders to continue to build strategic relations with Civil Rights (Hispanic, African American, Asian Pacific Islander American Indian, and Alaskan Native), progressive, and community partners and education stakeholders at the national, state and local level in order to advance a student centered agenda that leads to empowered educators. This includes supporting NEA governance with engagement of minority principles. Provide resources, counsel, and expertise in response to standing committees and governance requests. Direct Cost: 48,985,167 48,985,167 Personnel Cost: 9,804,314 10,001,663 Total: $ 58,789,481 $ 58,986,830 33

106 Core Function 4: Communications Utilize the best communication strategies to advance the organization s mission and vision by understanding key audiences, engaging state and local affiliates, members, partners, parents and communities, coordinating message development and delivery across the Association, and enhancing the Association s brand and reputation. Identified as an important shared priority between NEA and the State Affiliates, the Communications Core Function provides integrated, full-service communication services that support the work of the Association s Strategic Goals and the Center s core operations in order to more effectively reach and engage all key audiences. Scalable, customized communications, with applicability and utility for affiliates, are a critical component of this work. The Center for Communications seeks to position NEA leaders and members as the credible, leading voice for students and public education and works to engage members and the public to support the strategic initiatives of the Association. An array of communications tactics and activities are embedded in the top priority areas of the Strong Affiliates and Empowered Educators goals. They include comprehensive strategies to support Strong Affiliates in state battles and electoral campaigns, federal, state and local political engagement, activist engagement, and state capacity building. In support of Empowered Educators for Student Success, integrated communications campaigns are developed to amplify our work to drive educator-led, student-centered solutions; to empower educators to improve teaching and learning conditions and to maximize internal and external partnerships. Campaigns and Advocacy: Supporting the strategic initiatives led by the Center for Advocacy and Outreach on NEA issues and legislative goals that support great public schools for our members and their students; human rights, as well as social and economic justice issues that reflect NEA s commitment to equal opportunity and a just society. Empowered Educators and Student Success: A focus on multi-level communications strategies, leveraged resources, and tools to build capacity among members, state and local affiliates to increase member engagement and activism driving educator designed and developed policies that improve the quality of education for all students. Public Brand and Engagement: This area is designed to leverage special projects and events that enhance NEA s reputation among the public and engage members, as well. Affiliate Engagement and Capacity: Provide affiliate communications support, training, and services to strengthen affiliate communications capacity. Organizing Communications: Provide integrated strategic and tactical communications support for NEA and affiliate organizing campaigns, including building capacity in state affiliates and creating innovation in online organizing and member engagement. Communications Operations: The Center s core operational units work together to create cross-center and cross-association teams that produce effective integrated communications campaigns and tools designed to deliver key messages that resonate with members and external audiences. Operational teams include Media Strategy, Message and Intel, Integrated Campaigns, Digital Engagement, Publications and Editorial, Creative Services and Business Operations. 34

107 Core Function 4: Communications 1 Campaigns and Advocacy Develop national communications strategies, resources, and tools to build $ 1,273,292 $ 1,292,657 capacity in state affiliates and partner with them in their efforts to conduct political, legislative, and issue campaigns that increase the quality of member engagement, member training, and member activism while seeking legislative outcomes that support great public schools, sustainable organizational power, affiliate capacity and educate the public about their proactive efforts to support public education. Develop messaging and media strategy in collaboration with field staff and state affiliates, supporting legislative and issues campaigns important to NEA. This includes state and local support and capacity building as well as working to recruit, organize, train, and mobilize member activists to advance Association priorities. Develop, execute, and win electoral campaigns through messages to members and the public using members voices, third party validators, digital media, and paid and earned media. Develop and implement a timely and strategic program for NEA around the election, transition and inauguration of the next Administration and strategically align opportunities for NEA priorities. Recruit, engage, and prepare members to take action in political, legislative, and legal campaigns. Work to enhance message effectiveness in grassroots activities and legislative advocacy. Work with state affiliates in development and deployment of member leaders, messengers and activists who can support advocacy efforts. Support NEA s advocacy campaigns on human rights, social and economic justice issues that reflect NEA s commitment to equal opportunity and a just society with great public schools for every student. 35

108 Core Function 4: Communications 2 Empowered Educators and Student Success Develop multi-level communications strategies, leverage resources, and $ 662,718 $ 671,539 tools to build capacity among members, state and local affiliates to increase member engagement and activism driving educator designed and developed policies that improve the quality of education for all students. In collaboration with NEA s cross-center and affiliate staffed, National ESSA implementation team, advise, develop, execute and share a full suite of communications tools, utilizing partners, NEA leaders and members, reaching parents, policy makers, members and the media to help affiliates and support at a national level, efforts to drive student centered policies to boost achievement, help struggling schools, address and correct gaps in equity, supported and designed by educators from opportunities tied to ESSA. In conjunction with C4O and the ESSA implementation team, share customizable resources and assist in the execution and delivery of a comprehensive suite of communication tools to advance educator-driven and designed policies to enhance student learning and improve struggling schools. Working closely with at least five state affiliates, and the ESSA Implementation Team, developing and executing a comprehensive communications program in support of taking advantages of the opportunities in ESSA and passing pro-student, educator developed policies leveraging the voice of members and affiliate leaders. 2 Design and execute strategic multi-disciplinary communications campaigns that advance the Association s growth and servicing of members needs as they progress through their career continuum through the use of up-to-date research, planning, outreach, messaging, social, owned and earned media. 339, ,912 In collaboration with the CGPS, tell the story of members and affiliates driving quality of the professions as member s progress along the career continuum for the betterment of students and setting the standard of quality and excellence for educators. 3 Public Brand and Engagement8 1 Plan and execute special projects and events that strengthen the NEA 789, ,577 brand and reputation among the public and engage members. Maintain the national media and digital presence for Read Across America (RAA) and assist states and locals in creating and leveraging their RAA events (including the 20th anniversary) to further the Association s student-centered, Association-led goals and organizing efforts. Plan and create promotions and materials that further the Association s brand and public reputation as related to National Teacher Day/Appreciation Week and ESP Day. Provide state and local affiliates with tools and resources to produce branded events. 36

109 Core Function 4: Communications 4 Affiliate Engagement and Capacity Provide affiliate communications strategic support, training, and services $ 4,155,077 $ 4,161,533 to strengthen affiliate communications capacity. Implement a coordinated, strategic approach to the Association s communications efforts with state and local affiliate communicators resulting in an Association-wide shared communications plan. Utilize the PR Council of the States and State Education Editors organizations to further integrate the work of state communicators with that of NEA Communications. Provide communications counsel and support to state communicators. In support of state affiliates and members, develop and deliver written tools, including message guidance, training materials, and delivery of message, and media training via webinars or in person training with local affiliates, state affiliates, members, partners, affiliates and/or surrogates. Provide rapid response communications support to affiliates during moments of crisis. Serve as liaison between affiliates communication staff and NEA during a crisis situation and provide integrated communications strategy and support. State Affiliate Advertising Grant. 5 Organizing Communications 1 Provide communication capabilities assessment, strategic planning, 904, ,553 personnel training, product production, campaign execution support, and campaign performance analysis support for NEA and affiliate organizing campaigns. Work with C4O managers to plan, develop, execute and analyze communication activities for NEA and affiliate organizing growth campaigns. Additionally we will plan, develop, produce, deploy, and analyze multimedia and online communication products and services to support NEA and affiliate issue organizing growth campaigns. Work with C4O managers to plan, develop, execute, and analyze communication activities for NEA and affiliate issue organizing campaigns. Additionally we will plan, develop, produce, deploy, and analyze multimedia and online communication products and services to support NEA and affiliate organizing campaigns. Work with state and local affiliates to provide temporary strategic and on site help to move communications campaigns on priority issues or organizing efforts. Additionally we will provide strategic planning, coordination of materials and message. 37

110 Core Function 4: Communications 6 Communications Operations Influence the national and local media debate on public education and raise $ 747,387 $ 756,855 member and leader voices by leveraging and creating media opportunities and building and maintaining strong relations with earned media including print, online, and broadcast news media, education writers and editors, bloggers, and opinion writers. Also provide media training to Association leaders and spokespersons. Develop, conceive, and execute comprehensive media strategies and events that leverage leadership and member voices in support of the Association s efforts targeting national, state, and regional media across all platforms. Raise the voice of the NEA President on the national and local stage. Establish tools, systems and training to support an effective media strategy operation including list databases, analytics and technology. Provide media training for NEA leaders, members, and staff. 2 Plan and execute strategic communications initiatives for NEA projects, 14,102,732 14,105,745 initiatives and programs by managing multiple tactics, including paid media, strategic partnerships, sponsorships, and special events across the Center. National Media Fund. Plan, execute and evaluate paid media and campaigns on behalf of the Association and in coordination with state affiliates, partners, and allies. 3 Provide a full range of conceptual and strategic planning from traditional 2,454,437 2,495,540 and interactive design to film, pre and post production as well as using popular culture and the arts as a tool to engage NEA HQ, affiliates, and partners to fund an infrastructure necessary to effectively support missioncritical communications. Develop and disseminate creative and strategic content, graphic design, templates and other resources in support of state and local battles and campaigns. Introduce streamlined content management and sharing practices to leverage affiliates ability to employ cutting edge, profession-related art, stock images, infographics and motion graphics. Provide NEA HQ with a full range of creative, conceptual and strategic graphic design, film production, video editing, art direction and staffing to ensure high-quality materials and mission-critical communications in an ever changing environment. 4 Plan, develop, produce, and deploy and sustain digital engagement 1,816,321 1,837,411 strategies and products in support of NEA strategic priorities. Establish strategy, infrastructure and trainings to support digital advocacy and organizing including online organizing platforms, social media advocacy and online paid promotions. Perform needs assessment, conceptual planning, design, production, and maintenance services for NEA Web sites, mobile application, Internet Technology and emerging digital engagement products and platforms that facilitate a non-stop effort to engage, inform, support, mobilize, and activate NEA members and public audiences. Support the development and scaling of key digital engagement infrastructures including platform, content management, text messaging, and listening and analytics tools. 38

111 Core Function 4: Communications 6 Communications Operations Research, write, edit, design, and provide editorial content in print and $ 5,574,612 $ 5,605,817 digital media to engage members and communicate Association key messages. Advance the Association s mission, vision, and goals with editorial content in NEA Today to members, education and labor media, policymakers, opinion leaders, and state affiliate communicators in print and digital formats. Expand NEA Today co-publishing with state affiliates in a shared cost fashion. Advance the mission, vision, and goals of the NEA Student Program in NEA Today for Future Educators to prospective and current student members and association leadership and staff in print and digital platforms. Provide editorial content in NEA Today-Retired to prospective and current NEA Retired members, education and labor media, policymakers, opinion leaders, and state affiliate communicators in print and online platforms. Provide editorial content in The Higher Education Advocate to prospective and current higher education members, education and labor media, policymakers, opinion leaders, and state affiliate communicators in print and digital platforms. Provide editorial content in Thought & Action, the higher education review journal in digital and online platforms. 6 Develop and execute strategic communications programs to engage 842, ,218 delegates, members and external audiences during the Representative Assembly and provide communications support for internal clients. Execute strategic communication programs at NEA s Representative Assembly. Direct Cost: 24,853,936 24,853,936 Personnel Cost: 8,808,113 8,982,421 Total: $ 33,662,049 $ 33,836,357 39

112 Core Function 5: Business Operations Administer the business operations in a manner that supports the changing needs and priorities of the organization by ensuring efficient and effective infrastructure and sound strategic and fiscal management, leveraging technology, and strengthening the Association s human capital. NEA s infrastructure, facility services, human resources, technological tools, legal services, and financial management reside in this area. This Core Function also handles improvement and innovation initiatives, strategy development, workplace culture initiatives, business development, financial analyses and risk management, and the integration and leveraging of systems and technology. Work that will receive significant visibility in the next planning and budget cycle includes the design and implementation of a variety of technology projects, including NEA360, a new Travel and Expense module, a Grants tracking system, a Partnership data project and upgrading the Human Resources Information System. Legal issues will continue to be high impact work, along with workforce planning and skills training at all levels of the NEA and state affiliates. Long-term strategic and financial planning is also essential to maintaining the Association s financial health and meeting future challenges. Financial and Legal Support: Financial analysis and risk management with an emphasis on affiliate fiscal health. This area provides business intelligence, technical support, training, budget planning and development, as well as comprehensive support for membership management services including alternative dues collection (edues). Legal advice, assistance, and litigation services provided to affiliates on issues of cross-cutting national significance, including evaluation and tenure reforms, payroll deduction roll-backs, vouchers, evaluation privacy, as well as, ongoing assistance on labor relations, individual rights, education reform, political activity, and other legal matters. Human Resources Operations: Key initiatives in this area focus on benefits, recruiting, and effectiveness in strategic workforce planning to align the organization s human capital with its priorities. It also seeks to align the workplace culture with NEA s vision and strategy. Infrastructure and Organization Support: This area manages resources to effectively advance the Association s strategic goals and core functions, while aligning and leveraging resources to promote innovation, adaptability, operational efficiencies, and effectiveness. Organization and Strategy Development: NEA s strategy is developed in this area and operations are aligned through strategy development and review processes that support decision making, promote organizational learning, create alignment and effectiveness, and promote innovation. Technology: Technology is a key driving force in changes taking place across the globe and maximizing its use requires attention to aligned policies and procedures, standards, training, data availability/security for NEA, affiliates, and related or allied organizations. Facility Services, Logistics, and Support: Key efficiencies include increasing NEA headquarters energy efficiency; creating a workplace that supports a 21st century workforce; plus restructuring conferences and consolidating business processes, such as travel and catering, for improved results at reduced costs. 40

113 Core Function 5: Business Operations 1 Financial and Legal Support Systems and Data: Provide ongoing support for NEA and affiliates through $ 816,012 $ 830,216 the deployment of Association business systems and software applications. Maintain and enhance financial systems and related business processes to improve NEA and affiliate efficiency in recording and reporting financial transactions in accordance with appropriate standards and regulations. Maintain and enhance membership systems to ensure accurate and timely processing of membership transactions in accordance with membership policies. 2 Promote NEA and affiliate fiscal health through training and advisory services for staff and governance that enhances their ability to conduct Association business and meet regulatory requirements. 10,078,545 $ 10,152,144 Assist NEA and affiliates by providing financial analysis and advice, financial management reporting and training, newsletters, and other communications including updates on specific regulatory and business management issues. Assist NEA and affiliates by providing membership analysis and advice, membership reporting and training, newsletters, and other communications including updates on specific membership issues. Process the Association s membership transactions and financial obligations and provide accurate and timely financial and membership reports and analysis to support NEA business operations. Process the Association s transactions, financial compliance, obligations and provide accurate and timely financial, fiduciary, and regulatory reports to support NEA business operations. Process transactions and provide comprehensive reporting for the NEA Fund for Children and Public Education (NEA Fund) to ensure accurate recordkeeping and regulatory compliance. 3 Manage and project the Association s finances by monitoring revenues and expenditures and analyzing factors that affect revenue streams and cause expenditure variances. 1,277,931 1,297,725 Manage the agency fee activities which include coordinating the agency fee audit, preparation of Hudson Notices, and attending agency fee hearings as needed. Provide financial analysis to governance and executive management. Provide fiscal planning, forecasting, and assistance in developing Association budgets. 4 Reduce loss and increase efficiency by executing a comprehensive risk management program that includes audits, compliance monitoring, and information security. 371, ,901 Execute a comprehensive internal auditing program. 41

114 Core Function 5: Business Operations 1 Financial and Legal Support Provide legal advice, counseling, agency fee support and support for the $ 2,753,168 $ 2,787,383 NEA Fund for Children and Public Education and Federal Election Commission matters. Ensure 100 percent of agency fee support is error free and provided within established guidelines. Maintain the National Organization of Lawyers for Education Associations (NOLEA) group site as a resource and communications network for attorneys nationwide, organize annual meeting of NOLEA attorneys, provide NOLEA attorneys with resources and analysis on cross-cutting issues of significance such as social media guidance, evaluation privacy, challenges to vouchers, and challenges to payroll deduction cutbacks. Provide legal and policy support to governance (e.g., Executive Committee, Board, Constitution, Bylaws, Resolutions, etc.) at the national and state levels. Provide policy support to the NEA Fund for Children and Public Education and Federal Election Commission matters. Provide representation, advice, memoranda, briefs, and oral arguments for NEA, affiliates, and members on various legal matters including, (i) amicus work in cases of significance before the Supreme Court and state Supreme Courts; (ii) several affirmative strategic litigation initiatives to advance the interests of NEA, its affiliates and members (such as, challenges to tenure repeals, evaluations based primarily on standardized test scores, voucher programs, and payroll deduction cutbacks), and (iii) the defense of NEA and its affiliates in pending litigation. 2 Human Resources Operations 1 Workforce planning including position control, recruitment, internships, and Human Resource partner consulting. 6,518,980 6,540,334 Manage position control, classification costs, and all other workforce costs and their effect on the personnel line. Develop and analyze NEA s personnel cost modules and review the accuracy of costs for Management and provide recommendations for actions to effectively anticipate and budget for changing benefit programs cost. Perform recruitment, promotion, salary calculations, placements, and classifications that are consistent with NEA guidelines and meet the current and projected staffing and racial equity needs of the NEA. Provide consulting services to assigned goal and core leads or designees on Human Resource related services. Provide training and departmental consultations to ensure timely completion of the organization-wide performance management review process. 42

115 Core Function 5: Business Operations 2 Human Resources Operations Manage Human Capital operations including labor relations, payroll, $ 3,439,821 $ 3,490,606 benefits, performance management, and NEA staff s collective bargaining agreements. Coordinate and monitor procedures for timely completion of all benefit plan audits and compliance standards. Prepare and file annual reports to the Department of Labor (DOL), Internal Revenue Service (IRS), and other regulatory agencies. Coordinate integration of and maintain all Human Resource Information Systems. Ensure accuracy of personnel files throughout the various stages of the employment cycle. Benchmark strategies for integrating technology with Human Resources business practices. Manage reporting and data analysis of employee information to ensure compliance with federal and state regulations; and to provide Affirmative Action Report. Maintain electronic or paper records for all employees and retirees. Deliver staff education and administer professional development and tuition reimbursement funds to offer learning opportunities for professional development, and training in critical skills in alignment with organizational goals. Ensure compliance with established Department of Labor policies and collective bargaining agreements. Design and manage a broad benefits program for employees, retirees, and some state affiliates that include health and welfare benefits, a defined benefit pension plan, and 401(k). Maintain working relationships with benefit providers to provide on-going access to quality, cost-effective health and medical coverage. Ensure compliance with Employee Retirement Income Security Act (ERISA) federal legislation and contractual obligations related to the organization s defined benefits plan. Monitor other supplemental programs for the Officers, Executive Committee members, Student Chair, and the Executive Director. Ensure compliance with payroll legislation and tax laws. Reconcile payroll data and administer record keeping and verifying the reliability and accuracy of all the payroll processes. Maintain interest-based labor relations program. Provide and promote a comprehensive wellness program to improve employee health and morale. Perform workplace health assessments to ensure programs are aligned with the organizational wellness strategy. 3 Develop NEA s workplace culture to foster a workforce inspired to achieve 730, ,820 NEA s vision and strategy. In collaboration with staff unions, foster employee engagement to maintain organizational effectiveness and positive workplace morale. Provide coaching, mentoring, and facilitation support to promote teamwork and positive working relationships. 43

116 Core Function 5: Business Operations 3 Infrastructure and Organization Support Lead, direct, and align NEA s programs and services by engaging staff and $ 11,135,566 $ 11,290,074 managing resources to effectively advance the Association s strategic goals and core functions. Provide departmental infrastructure and organizational support to effectively realize the Association s strategic goals and core functions. 4 Organization and Strategy Development 1 Facilitate the development of NEA strategy and align both strategy and 2,718,199 2,754,784 operations. Conduct learning and progress review processes on the NEA Strategic Plan to reflect on accomplishments and align our tactical strategy to the longterm strategy. Conduct on-going Strengths, Weaknesses, Opportunities, and Threats (SWOT) analyses that examine the forces affecting NEA, its affiliates, and public education to determine organizational opportunities and threats to achieving our vision and priorities. Convene NEA leaders/staff and provide facilitation and/or strategic advice for the ongoing stewardship of NEA s mission, vision, and core values. Advance vision for educator empowerment through transformation dialogues and other collaborative activities both internally and externally. Identify and articulate the processes that support and sustain educator empowerment as well as those used to ready educators for empowerment roles. Suggest strategic opportunities to NEA and its affiliates to disseminate best practices in educator empowerment. Improve strategic systems to enhance leaders ability to make informed programmatic, policy, budgetary, and business decisions that are aligned with NEA strategy. Lead the overall execution of organizational strategy and ensure operational alignment and outcomes. 2 Support the NEA and departments to ensure efficient and effective $ 3,005,715 $ 3,053,058 administration of resources. Administration, support, and operations planning. Insurance policies. Purchasing and Procurement. 44

117 Core Function 5: Business Operations 5 Technology Build a solid foundation of IT infrastructure that provides reliable, agile, $ 910,170 $ 917,917 and flexible IT service choices while optimizing NEA s IT investments. Manage, adopt, and promote the use of using shared, common web-based services, data, and technology architecture and standards to NEA enterprise system/applications, affiliate services, NEA Member Benefits, and external partners. Manage the availability, usability, integrity, and security of the data employed in an enterprise. Organize tasks and resources across projects, and manage and support NEA, NEA Member Benefits, state affiliates, and other entities in support of office applications, Association foundation applications and technical support. Provide IT related management, support, development and staffing for events including State Technology Coordinator Co-op, Technology Compact Committee, Work Groups, Summit, Representative Assembly, or other Association activities. 2 Effectively direct resources for overall design, development, modernization, 4,817,069 4,862,262 and maintenance of a robust central computing center. Develop an infrastructure flexible enough in its architecture to respond to innovation and the changing needs of the NEA. Datacenter and Core Services: Develop and maintain NEA s datacenter and core services including directory services, backups, and monitoring. Networking: Support NEA s LAN, WAN, Wireless, and Internet connectivity to support NEA headquarters and affiliates. Operations: Operations of cyclical processes (nightly, weekly, monthly, yearly). Coordination of necessary operational processes to fulfill the functional needs of the Association and affiliates. Servers and Storage: Build, maintain, and explore a service architecture that increase fault tolerance for servers and storage wherever located. 3 Provide standardization and improve IT Service Level Management for all 3,438,558 3,485,902 consolidated and enterprise-based services, to achieve improved service outcomes, and demonstrate accountability. Adoption of common service management processes, tools and metrics in order to coordinate support, management, and reporting. Hardware Support: Hardware life-cycle support refers to all the processes, tasks and people required to keep standard issued devices functional and maintain user productivity during the lifetime of PC hardware and software. The life cycle services start just before the PC acquisition phase and continue through disposal and transition to the replacement platform. Standard issued devices are desktops, laptops, tablets, mobile, desk phones, printers, monitors, and other miscellaneous items. Product Support: Maintaining product agreements of various enterprise applications, specifically managing support cost, licensing, administration and technical support. The product life-cycle support will provide a consistent and predictable framework for support, available when a product releases and maintain throughout that product s life. 45

118 Core Function 5: Business Operations 5 Technology Secure NEA s IT infrastructure and enterprise systems by safeguarding the $ 1,283,205 $ 1,294,827 integrity of information resources and privacy of its communities. Provide the means to achieve the level of information protection driven by the business needs supported by policies, standards, procedures, and the technical architecture and tools. Define and implement a consistent approach that meets legal and regulatory requirements relating to confidential and/or personal information (PI). Manage a departmental IT quality testing assurance program as part of a coordinated enterprise applications program. Develop clear and forceful policies, standards and procedures to address the integrity of enterprise applications and source code. Manage a departmental IT security program and perform security audits as part of a coordinated enterprise security program. Develop clear and forceful policies, standards, and procedures to address the integrity (management and protection) of information (data) and the security of IT infrastructure and enterprise systems resources on which that information resides. Report and document IT security incidents, and monitor compliance with it, and serve as the department s principal IT security contact. 5 Provide sound information systems featuring a rich set of applications and 5,640,033 5,688,885 tools that address the increasing need for more effective and efficient processes and provide for advanced analytics. As applications are either deployed for the first time or replaced, they should employ standardsbased technologies that will integrate with emerging technologies for continued accessibility. Custom application development: build, maintain, and support custom NEA solutions to unique business problems. Custom development will be focused on meeting requirements unique to the NEA where no commercial solution is available. Database and data: administer and maintain the databases underlying NEA applications and reporting systems. Provide report writing expertise and support NEA staff and affiliates. Operations, project management and administration: provide support for and maintain enterprise applications, whether Commercial off the shelf (COTS) or custom. This will be an increasing proportion of the work of the enterprise system s group as NEA moves towards Software as a Service (SAAS) solutions. Web development and delivery: build, maintain, and administer NEA s web presence and hosted sites, whether on premises or externally hosted. Continue to provide hosting and support for NEA affiliates as requested. 46

119 Core Function 5: Business Operations 6 Facility Services, Logistics and Support Implement building projects that improve NEA s infrastructure, and $ 336,900 $ 339,481 continue to make NEA a green environment. Create more productive and efficient physical working spaces that effectively use innovative office systems, maximize existing space, complement changing work styles, and contribute to employee efficiency and morale. Undertake activities to ensure the maintenance of our Green Building Certification, reduce energy consumption and waste, and to further green our workplace. 2 Manage NEA facilities, business continuity and risk management, meeting 13,468,226 13,586,148 logistics, and print media production. Conference and Travel Services: Consult, plan, and contract with vendors to support NEA meetings held in the NEA building and in off-site locations. Assist in special events planning. Oversee NEA s café/catering service and travel agency. Develop sound practices pertaining to business continuity, crisis management, risk management, insurance, safety, and security programs. Design and implement a comprehensive business continuity program and conduct training for headquarters staff on safety procedures. Facility Services: Provide a clean, safe and healthy working environment for NEA building occupants. Maintain and upgrade the building related assets of the organization. Plan, develop, and implement energy conservation programs to reduce utility cost and maintain our Energy Star rating and Green Building Certification. Provide for the ongoing logistical and facilities coordination of the Annual Meeting. Assess and implement new strategies, tools and improvements to enhance the efficiency, effectiveness, and engagement of delegates at the NEA Representative Assembly. Provide property management services for the spaces at NEA HQ that NEA leases to other organizations. Provides cost-effective and efficient printing, mailing, shipping and receiving services to NEA HQ, affiliates, related organizations and other constituents. Direct Cost: 28,380,978 28,380,978 Personnel Cost: 44,359,056 45,109,489 Total: $ 72,740,034 $ 73,490,467 47

120 Core Function 6: Governance Develop and maintain leadership development and decisionmaking structures and processes across the Association and its affiliates that clearly advance the organization s mission and vision. It is critical that NEA s leaders have solid policy and content guidance, as well as, innovative, efficient, and reliable business support; leadership development; and strategic opportunities needed for effective decision-making and influential leadership. This Core Function s work will be prioritized in a number of ways to help facilitate effective governance and leadership. A greater degree of focus on positioning NEA leaders based on key audiences and topics that are targeted within the strategic goal areas, in order to align and integrate activities that relate to one another and reinforce the organization s goals. This work will be undertaken with the goal of improving group dynamics and information sharing within and between governance groups, committees, and councils. There will be a specific priority focus to identify and implement training opportunities to help NEA governance and appointed bodies meet the demands of leading in a complex and fastchanging environment with shifting and unpredictable resources. Additionally, NEA has some of the largest and most complex governing structures of any organization in the world. Supporting these structures effectively and efficiently requires a constant focus on innovation and self-evaluation. This will be part of the prioritized and ongoing work necessary to ensure that NEA has sound governance infrastructures and policies that will serve the organization well into the future. Governance for the 21st Century: This area is charged with assessing NEA s governance and facilitating and supporting informed decision-making from NEA s governance bodies. Committee and Council Coordination: Facilitating well informed deliberations from the Standing and Advisory Committees and providing operational assistance to constituency councils is the purview of this area. National and Global Leadership Engagement and Influence: Assuring that strong Association leadership voices are prioritized and heard in venues most likely to advance the Associations goals is a primary focus, along with facilitating NEA s influence in the international labor and educational arenas. Competency-Based Leadership Development: Using a holistic approach, while seeking to rationalize the current balkanized system of leadership development activities into a system that prepares Association leaders with the knowledge, skills, and abilities required to guide the Association into its future. 48

121 Core Function 6: Governance 1 Governance for the 21st Century Governance for the 21st Century: Support, assess, implement, and align $ 669,610 $ 682,522 NEA governance policies and procedures to ensure that the Association has the decision-making structures and processes to significantly advance NEA s mission, vision and core values. Actively review NEA s policies to ensure that the organization has the procedural and structural capacity to grow and strengthen membership pursuant to membership strategies. Conduct organizational self-assessment survey and gather member and governance feedback regarding representation, functions, and design of NEA governing bodies. Design and build components in an electronic policy library that collect, categorize, and archive all adopted policies and related decision making in support of their implementation and interpretation. Produce and codify comprehensive analyses of prioritized policies and make recommendations to governance as appropriate. Manage and align the work of NEA s official governing bodies and advisory committees; support internal and state/local affiliate requests for assistance with policy development, analysis, interpretation, and research. Provide analysis and interpretation of Association policies; monitor compliance with Association policies. 2 Engage, support, and align well-informed decision making by the Executive 3,919,650 3,934,714 Officers and Committee to advance the organization s present and anticipated needs. Executive Committee Benefits Executive Committee Official Meetings Executive Committee Release Time Executive Committee Support Services Executive Committee Travel Executive Officers Benefits Executive Officers Living Allowance Executive Officers Salary Executive Officers Travel Official NEA Representation 3 Facilitate, support, and align well-informed decision making by the Board of 3,263,499 3,273,182 Directors that meets the contemporary and future needs of the organization. Board of Directors: Benefits Board of Directors: Governance Representation Board of Directors: Instate Expenses Board of Directors: Internal Committees Board of Directors: Official Meetings Board of Directors: Substitute Pay/Salary Loss Board Travel: National Conferences 49

122 Core Function 6: Governance 1 Governance for the 21st Century Engage, support, and align well-informed decision making by the $ 1,547,110 $ 1,555,717 Representative Assembly that meets the contemporary and future needs of the organization. Committee on Constitution, Bylaws, and Rules Committee on Program and Budget Convention Guests Credentials Committee Elections Committee NEA Retired Meeting RA Governance and Policy Administrative Support Services RA Today/Delegate Communications Resolutions Committee 2 Committee and Council Coordination 1 Engage, support, and align well-informed deliberations of appointed 555, ,119 committees and councils. Committee Implementation Reports and Administration Financial Support for National Council for Education Support Professionals Financial Support for National Council for Higher Education Financial Support for NEA-Retired Executive Council Standing Committees 3 National and Global Leadership Engagement and Influence 1 Engage the voice of Association leadership to align highest organizational 653, ,870 priorities and relationships that best advance NEA s goals Engage multiple content departments, develop content briefings and guidance, and develop salient talking points. Engage multiple departments and strategic goal areas, develop and place topical, timely and well-thought out opinion pieces in strategic print and Web properties; as well as public hearing testimony, letters to editors, blogs, and other social media content written under the President s by-line. Information Forums and Town Halls, webcasts with Board, Delegates, and state leaders. President/Executive Director internal meetings. Produce written deliverables from the Office of the President including detailed meeting and video scripts, correspondence with members, affiliates, influentials, and governance materials generally (such as, policy documents, meeting minutes, reports, and memos). 50

123 Core Function 6: Governance 3 National and Global Leadership Engagement and Influence Engage and support leadership initiatives that strengthen NEA s alliances $ 968,121 $ 982,107 with U.S. and international labor unions. Develop and sustain partnerships with Education International (EI) affiliates, other national teacher unions, global labor federations, and international organizations and networks to advance NEA s brand and influence global education debates that have domestic effects. Engage, participate, and support EI and its affiliates to advance NEA s mission, vision, goals, and core values. Manage the profile of NEA s leadership presence and representation in EI. Identify, systematize, and disseminate best education policies and practices, from other countries, throughout the Association and its state affiliates. Provide policy counsel as to relationships with other labor leaders and organizations, including jurisdictional agreements and shared-member markets. 4 Competency-Based Leadership Development 1 Develop, identify and deliver content and experiences that will effectively 741, ,550 impart NEA leadership competencies and prepare leaders with the knowledge, skills, and abilities necessary to lead relevant and thriving Associations. Partner with affiliates to align competency-based leadership development priorities, programming, and leverage collective resources. Develop and implement assessment of existing NEA and affiliate leadership development activities, structures, and results in order to enhance quality, reach and effectiveness throughout the Association. Enhance systems of engagement between NEA s leadership competencies and NEA membership. Provide content and online learning materials from Summit and other sources that support the competencies. Track member exposure to and usage of NEA and affiliate content and events. Align and connect leadership development across NEA programs and departments. 2 National Leadership Summit: Develop, identify, plan, and deliver content 2,053,408 2,067,396 and experiences that will effectively impart NEA leadership competencies and prepare leaders with the knowledge, skills, and abilities necessary to lead relevant and thriving Associations. Conduct planning meetings for the purpose of designing national leadership summits. Deliver one annual National Leadership Summit that is based upon the NEA leadership competencies and that serves to identify activist leaders and prepare them with the knowledge, skills, and abilities necessary to lead relevant and thriving Associations. Coordinate with state and local affiliates to enhance assessment of participant activism following each Summit. 51

124 Core Function 6: Governance 4 Competency-Based Leadership Development Deliver and coordinate competency-based learning opportunities for $ 573,339 $578,719 leaders to ensure that they are equipped with the knowledge, skills, and abilities to be effective in the roles in which they serve. Develop and identify content and experiences that will effectively impart NEA Leadership Competencies and prepare leaders with the knowledge, skills, and abilities necessary to lead relevant and thriving Associations. Enhanced focus on providing technical assistance to state and local affiliate leaders to assist with leadership development tactics and activities that are aligned with NEA priorities. 3-1(g) Workshop Design and deliver competency-based content and experiences for State Affiliate Vice Presidents. Implement NEA Board training to enhance overall knowledge, skills, and abilities for NEA Directors. Increase the conference alignment team s efforts to engage in strategic conversations with state and local affiliates to better align and collaborate on leadership development programming and improve access to high quality NEA events and trainings. New BOD member transformation dialogue. Partner with NCSEA to provide competency-based content and experiences for State Affiliate Presidents. Utilize NEA s Leadership Development Workgroup to develop partnerships and align all NEA leadership development activities with the leadership competencies, coordinate all leadership development work, and utilize governance and constituency meetings and events to deliver and model leadership knowledge, skills, and approaches. Direct Cost: 9,344,078 9,344,078 Personnel Cost: 5,602,146 5,710,818 Total: $ 14,946,224 $ 15,054,896 52

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126 Budget Financial Line Item Definitions Salaries/Fringe Benefits Salary payments to NEA employees and the provision of benefits such as medical insurance, life insurance, retirement, post-retirement health care, and payroll taxes (Social Security and unemployment insurance.) Non-Staff Wages Reflect the salaries of the President, Vice President, Secretary-Treasurer, salaries of state executive directors participating in the Unified State Executive Director Program, and payments for stipends, salary loss, or substitute pay for members of the Executive Committee and Board of Directors. Travel Staff Represents travel expenses incurred by NEA employees on official business, such as transportation, lodging, and meals; travel credit allowances paid for extensive travel in accordance with existing staff contracts or policy authorization; and moving and relocation expenses. Travel Non-Staff Represents travel expenses incurred by non-nea employees on official business, such as transportation, lodging, and meals. This includes travel expenses incurred by the Executive Committee, Board of Directors, members, state and local affiliate governance, and staff. State and Local Projects Grants and approved projects for affiliated organizations, including UniServ grants, Unified Legal Services Program reimbursements, Small States Foundation grants, Great Public Schools funding, and cooperative projects. Publication Costs Paper, printing, production, composition, art, and design costs incurred for publications such as NEA Today and specialized constituent publications, research papers, and other reports. Office Expenses Stationery, office supplies, telephone/communications, photocopy, postage/shipping, and utility costs incurred. Administrative Expenses Interest payments to lending institutions for borrowed money, insurance, regional office and warehouse rent, membership/funding to outside organizations, contributions, and depreciation. Machinery and Equipment Personal computers, computer accessories, and items such as mailing equipment, calculators, and equipment rental/repairs. Outside Services Fees paid for professional legal, audit and tax services, consulting services, and building maintenance. It also includes costs for Educators Employment Liability insurance premiums, membership forms and cards, promotional materials, and advertising. Conference/Meeting Expenses Facilities, equipment rental, food and beverages, speaker fees, training materials, teleconferencing, and video conferencing. Recovery External Funds received from NEA affiliates (such as expense reimbursements) and from sources outside the Association. Contingency Fund NEA Bylaw requires a contingency reserve of no less than $1,000,000 and no more than 1 percent of the budget. 54

127 Total Budget Comparisons By Line Item Proposed Proposed Description Salaries/Fringe Benefits $ 115,844,193 $ 117,896,993 Non-Staff Wages 6,055,361 6,055,361 Travel Staff 7,936,095 7,936,095 Travel Non-Staff 12,260,570 12,260,570 State and Local Projects 136,424, ,424,667 Publication Costs 4,494,206 4,494,206 Office Expenses 7,331,490 7,331,490 Administrative Expenses 19,400,111 19,400,111 Machinery and Equipment 8,600,652 8,600,652 Outside Services 46,875,361 46,875,361 Conference/Meeting Expenses 8,941,972 8,941,972 Recovery External (11,910,278) (11,910,278) Sub-Total $ 362,254,400 $ 364,307,200 Contingency Fund 3,000,000 3,000,000 Total Budget $ 365,254,400 $ 367,307,200 Proposed Proposed NEA Programs 30% Salaries/ Benefits 32% NEA Programs 30% Salaries/ Benefits 32% State/Local Projects 38% State/Local Projects 38% 55

128 Appendix A: Recoveries NEA General Fund receives funds from its affiliates, external sources and other NEA Special Purpose Funds. These funds represent such items as advertising in NEA publications and reimbursement of funds advanced on behalf of NEA affiliates. The impact of these recoveries are reflected as a reduction of the total cost within the appropriate activity. Goal/Core Function Category Adopted Modified No. Description # Tactic Description Empowered 1 1 Education Support Professional $ 90,000 $ 90,000 Educators for national conference registration fees Successful Students 2 Organizing 1 4 Reimbursements from state affiliates 1,165,416 1,165,416 for jointly funded executive director positions 3 Advocacy 2 2 Legal fee reimbursements 975, ,000 3 Advocacy 2 3 Reimbursement from state affiliates 66,780 66,780 for ebill maintenance and processing fee cost 3 Advocacy 2 3 Educators Employment Liability and 825, ,000 Association Professional Liability reimbursements 3 Advocacy 2 5 NEA Joint Conference on Concerns 110, ,000 of Minorities and Women registration fees 3 Advocacy 2 5 Human and Civil Rights dinner tickets 155, ,000 4 Communications 6 5 NEA Today advertising 2,265,000 2,265,000 4 Communications 6 5 Specialized constituency publication 55,710 55,710 advertising (continued) 56

129 Appendix A: Recoveries (concluded) Goal/Core Function Category Adopted Modified No. Description # Tactic Description Business 1 5 National Organization of Lawyers $ 25,000 $ 25,000 Operations for Education Associations conference registration fees 5 Business 2 2 NEA Employee Benefit Plans 230, ,000 Operations personnel cost recovery for Human Resources administration 5 Business 2 2 NEA Employee Benefit Plans 40,000 40,000 Operations cost recoveries 5 Business NEA Member Benefits and other 3,537,372 3,537,372 Operations Association entities technology infrastructure support 5 Business 6 2 Annual meeting activities 1,110,000 1,110,000 Operations 5 Business 6 2 Print Recoveries 550, ,000 Operations 5 Business 6 2 Catering and Conference 40,000 40,000 Operations Recoveries 5 Business 6 2 Rental Income 77,000 77,000 Operations 5 Business 6 2 Transfer from infrastructure 359, ,000 Operations Special Purpose Fund 6 Governance 4 2 National Leadership Summit 234, ,000 and Policy registration fees Total External Recoveries $11,910,278 $ 11,910,278 57

130 Appendix B: Highlights of The NEA Foundation s Programs The NEA Foundation is a public charity supported by contributions from educators dues, corporations, foundations, and others. We support student success by helping public school educators work with key partners to build strong systems of shared responsibility. The Foundation is reaching, yearly, almost three quarters of a million students through our combined grants to educators programs and systemic initiatives that support union-district collaboration. As an independent philanthropic entity, we bring the voice of the educator to public education policy and reform, ensuring that teachers are the makers of change, not its objects, treated as professionals, capable of self-regulation and accountability. We believe that developing and strengthening partnerships among local education unions, school districts, and community organizations is a powerful force for improving student performance and a vehicle for systemic reform. Our theory of change and corresponding local interventions are based on recent research on effective schools, district redesign, external agent engagement, association capacity, curriculum and instruction, among other related areas. We provide up to $1.25 million in grant funding to our Closing the Achievement Gaps Initiative sites over a five-year period to support their collaboratively and locally-defined strategies to close the achievement gaps in their community. Together, these groups are shaping learning environments and opportunities for all students to achieve at higher levels. The joint planning ensures that implementation effort is owned by all parties increasing its effectiveness and chances for success. Our Institute for Innovation in Teaching and Learning supports local unions and school district leaders collaborative efforts to improve education by focusing on a single issue and providing a dedicated coach for technical support to develop a team plan, connecting leaders to a larger community of practice, and sharing online curriculum on issues of labormanagement and how to lead change and reform. The Institute consists of teams (local union, district administration, and community members) from across the country. Each has committed to work together toward a common goal: to improve the quality of education for their students. The NEA Foundation initiative, Building State Affiliate Capacity, supports the growth and development of NEA state affiliate skill and capacity around teaching and learning issues helping to make participating affiliates more resilient, nimble, and relevant to the future of public education in their state. For many state and local union organizations, this work represents a significant shift in organizational mission, vision and capability. Our 19 free online courses support district and union leadership and the field as a whole. Our goal is to increase the education community s ability to design and implement reform projects collaboratively. These courses build skill and capacity in labor-management relations, change management, and leadership. Our Grants to Educators support new ideas and practices to strengthen teaching and learning. Our goal is to fund and share successful strategies to educate and prepare students for bright and rewarding futures. We have awarded $7.5 million over the past decade to fund more than 4,500 grants to public school educators to enhance teaching and learning. We invite all eligible educational professionals to apply for these grants, due February 1, June 1, and October 15. The NEA Foundation s innovation work identifies new opportunities and tests approaches in public education aimed towards preparing all students for college, career and life. Our Global Learning Fellowship Program responds to the major forces: automation of jobs, globalization, corporate restructuring of how work gets accomplished and demographic changes which are causing a shift in the knowledge and skills students need. The program builds a structured and collaborative learning experience that supports educators as they acquire global competence skills. Over one year, Fellows are supported by NEA Foundation staff, partners, and other field experts, as they work through online course work, resource guide and webinars, introductory language learning, a two-day professional development workshop, and international field study. Fellows are required to submit and share lesson plans, unit plans, or full curriculum integrated with global competency skills, contributing to an increasing field of knowledge on this topic. They are positioned to lead the profession by advocating for global learning and global competence within their schools, associations, and districts. In partnership with AT&T, the NEA Foundation supports popular urban farming programs in Milwaukee, WI and New York City, N.Y. to increase inner city students interest in STEM (Science, Technology, Engineering, and Mathematics). Our goal: provide more students with the skills and knowledge they ll need for 21st century jobs and develop curriculum and instructional content that educators can use to build similar programs nationwide. 58

131 Our Awards for Teaching Excellence recognize educators whose professional practice and advocacy for the profession are exemplary. Each year, we encourage all NEA state, federal, and direct affiliates to nominate one outstanding educator for the Awards for Teaching Excellence. The prestigious awards recognize and promote excellence in teaching and advocacy for the profession. They also honor public education and the dedicated members of the National Education Association. The online nomination system opens in September. The nomination deadline is May 1. The NEA Foundation s Salute to Excellence in Education Gala is an annual celebration of the men and women who work in America s public schools and of the unique bonds that educators and students share. All recipients of the Awards for Teaching Excellence are honored at the event. 59

132 Appendix C: Governance Proposed Proposed EXECUTIVE COMMITTEE Executive Officers Salaries $ 797,902 $ 797,902 President $ 289,286 $ 289,286 Vice President 254, ,308 Secretary-Treasurer 254, ,308 Executive Officers Benefits/Living Allowance/Travel 887, ,927 Executive Committee Travel 296, ,715 Executive Committee Release Time 543, ,490 Executive Committee Benefits 472, ,684 Executive Committee Support Services 49,590 49,590 Executive Committee Official Meetings 850, ,556 President s Meetings/NEA Reps 20,850 20,850 Total Executive Committee $ 3,919,650 $ 3,934,714 BOARD OF DIRECTORS Official Meetings $ 2,162,876 $ 2,172,559 National Conferences 240, ,961 Committees 29,755 29,755 Directors In-State Expenses 590, ,555 Directors Benefits 250, ,552 Total Board of Directors $ 3,274,699 $ 3,284,382 REPRESENTATIVE ASSEMBLY Annual Meeting Administration $ 4,948,759 $ 4,963,393 Resolutions Committee 461, ,483 Constitution, Bylaws and Rules 77,553 77,553 Credentials Committee 23,780 23,780 Elections Committee 133, ,263 Committee on Program and Budget 19,554 19,554 Pre-RA Retired Meeting 85,000 85,000 RA Today, Reports and Administrative 697, ,995 Convention Guests/Past Presidents 49,089 49,089 Total Representative Assembly $ 6,495,869 $ 6,519,110 OTHER GOVERNANCE National Leadership Conferences $ 2,053,408 $ 2,067,396 NEA Board Role and Responsibility Training 277, ,947 Strategic and Advisory Standing Committees 555, ,119 Total Other Governance $ 2,887,018 $ 2,907,462 60

133 Appendix D: How Your Dues Dollars Are Allocated Active Teaching Professionals Proposed Proposed Goals Shared Tactics $ $ Ensure synergy across NEA s goals, Strong Affiliates for Educator Voice and Empowerment and Empowered Educators for Successful Students. Strong Affiliates for Educator Voice and Empowerment Build key overarching systems to enhance affiliate capacity to organize, engage, and empower members to fend off attacks on their rights and to improve public education, with emphasis on ballot measures and legislative initiatives. Provide financial support, technical assistance, field support, member engagement support, communications support, partnership brokering, and facilitate the sharing of best practices throughout the Association. Empowered Educators for Successful Students Develop meaningful partnerships with school sites, local affiliates, and state affiliates to move an Association-led, student-centered agenda focused on quality and equity, with a special emphasis on the quality of the professionals, the quality of professional practice, the quality of student learning, and the quality of educator and Association leadership. Research, Policy, and Practice Provide support to affiliates in efforts to expand, improve, and enhance pro-public education policy, improve practice, teaching and learning conditions, standards, and workforce quality. Provides specific attention to policies related to ESP and Higher Education. Organizing and Operational Support to Affiliates Support the UniServ program, test effective value propositions for all membership classes, develop a culture of organizing to drive more effective member recruitment, retention, and relevance and by doing so, build Association and member capacity. Member Advocacy and Outreach Harness the incredible power of members to engage in and advocate for NEA s propublic education agenda, policies, programs, and recommended candidates. Engage partners, particularly in the ethnic minority communities, in advocacy for laws and policies that enhance the lives of and protect the rights of our members, while improving public education within the pursuit of social justice. Legal and Insurance Support Implement advocacy programs for members including the Unified Legal Services Program, Fidelity Bond, Association Professional Liability insurance, and a 1 million dollar per member Educators Employment Liability insurance program. Communications Meet the communications needs of the Strategic Goals and ongoing everyday operations that reach all key audiences in the most effective way. Provide customizable communications with applicability and utility for affiliates and align perennial NEA signature programs and publications to highlight work to improve public education. Business Operations Provide business operations to ensure organizational effectiveness through technology infrastructure, financial services, facilities services, and human resources to serve the needs of affiliates and members. Governance Implement an inclusive, engaged governance process that fosters member participation and democratic decision-making through such governing bodies as the Representative Assembly, NEA Board, NEA Executive Committee, and NEA committees and task forces. Contingency Provide funding for emergencies at the national, state, or local levels. $ $

134 Appendix E: How Your Dues Dollars Are Allocated Education Support Professionals Proposed Proposed Goals Shared Tactics $ 6.69 $ 6.77 Ensure synergy across NEA s goals, Strong Affiliates for Educator Voice and Empowerment and Empowered Educators for Successful Students. Strong Affiliates for Educator Voice and Empowerment Build key overarching systems to enhance affiliate capacity to organize, engage, and empower members to fend off attacks on their rights and to improve public education, with emphasis on ballot measures and legislative initiatives. Provide financial support, technical assistance, field support, member engagement support, communications support, partnership brokering, and facilitate the sharing of best practices throughout the Association. Empowered Educators for Successful Students Develop meaningful partnerships with school sites, local affiliates, and state affiliates to move an Association-led, student-centered agenda focused on quality and equity, with a special emphasis on the quality of the professionals, the quality of professional practice, the quality of student learning, and the quality of educator and Association leadership. Research, Policy, and Practice Provide support to affiliates in efforts to expand, improve, and enhance pro-public education policy, improve practice, teaching and learning conditions, standards, and workforce quality. Provides specific attention to policies related to ESP and Higher Education. Organizing and Operational Support to Affiliates Support the UniServ program, test effective value propositions for all membership classes, develop a culture of organizing to drive more effective member recruitment, retention, and relevance and by doing so, build Association and member capacity. Member Advocacy and Outreach Harness the incredible power of members to engage in and advocate for NEA s propublic education agenda, policies, programs, and recommended candidates. Engage partners, particularly in the ethnic minority communities, in advocacy for laws and policies that enhance the lives of and protect the rights of our members, while improving public education within the pursuit of social justice. Legal and Insurance Support Implement advocacy programs for members including the Unified Legal Services Program, Fidelity Bond, Association Professional Liability insurance, and a 1 million dollar per member Educators Employment Liability insurance program. Communications Meet the communications needs of the Strategic Goals and ongoing everyday operations that reach all key audiences in the most effective way. Provide customizable communications with applicability and utility for affiliates and align perennial NEA signature programs and publications to highlight work to improve public education. Business Operations Provide business operations to ensure organizational effectiveness through technology infrastructure, financial services, facilities services, and human resources to serve the needs of affiliates and members. Governance Implement an inclusive, engaged governance process that fosters member participation and democratic decision-making through such governing bodies as the Representative Assembly, NEA Board, NEA Executive Committee, and NEA committees and task forces. Contingency Provide funding for emergencies at the national, state, or local levels. $ $

135 Index PAGE PAGE SUBJECT NO. SUBJECT NO. A Alternative Dues Collection C2-1-1 Achievement Gap(s) Young member engagement c2-1-3 Affiliate Financial Assistance (AFA) C2-1-4 Affiliate Leaders Issues organizing g2-4-1 Agency Fee Hudson Notices C5-1-3 Legal Support C5-1-5 Annual Meeting (RA) Coordination C5-6-2 Communication C4-6-6 Assessment Enterprise wide c2-1-4 Health C5-2-2 Leaders for Tomorrow G2-1-1 Needs C4-6-4 Organization C6-1-1 Association Professional Liability Program (APL) C3-2-3 Attorney Referral Program (ARP) C3-2-3 B Board of Directors Observances C3-2-5 Board of Directors Support C6-1-3 Bullyfree Campaign C3-2-6 Bullying Prevention Training G2-1-1 Budget Comparisons Line item...55 C Campaigns Advocacy C4-1-1 Ballot Measure G1-1-1 Electoral G1-1-1 Issues G1-1-1 Legislative Crisis G1-1-1 Living wage c3-2-1 Organizing C2-1-1 Media C4-6-1 Paid media c4-4-1 Social media C4-6-4 Collaborative Initiatives Local leader readiness g g2-2-1 Member readiness g g2-2-1 State readiness g2-2-1 Compensation Models Alternative C3-2-1 Practices C3-2-1 Collective Bargaining External partnership c3-2-4 Public Pensions C3-2-1 Technical assistance c3-2-1 Training C3-2-1 Compensation Practices C3-2-1 Communications Association wide c4-4-1 Digital C4-6-4 Integrated C4-4-1 Media C4-6-2 Message guidance c4-4-1 Minority Community C3-3-1 NEA Today C4-6-5 Print C4-6-5 RA Today C6-1-4 Read Across America Outreach And events c4-3-1 Representative Assembly C4-6-6 Strategies C4-1-1 Conferences and Trainings Emerging Leaders Academy (ELA) C2-1-2 ESP Leaders for Tomorrow training g2-1-1 ESP National Conference G2-1-1 Ethnic Leaders meeting c3-2-5 Higher Education C2-1-2 Joint Conference on Concerns of Minorities and Women C3-2-5 Leadership Summit C6-4-2 Minority Leadership Training C3-4-1 National Organization of Lawyers for Education Associations (NOLEA) C5-1-5 Retired C2-1-2 Strategic Goals GS = Goals Shared Tactics G1 = Strong Affiliates for Educator Voice and Empowerment G2 = Empowered Educators for Successful Students Core Function Areas C1 = Research, Policy, and Practice C2 = Organizing C3 = Advocacy and Outreach C4 = Communications C5 = Business Operations C6 = Governance 63

136 Index PAGE PAGE SUBJECT NO. SUBJECT NO. Student C2-1-3 Women s Leadership Training C3-4-1 Constituency Publications C4-6-5 Core Functions...6 Crisis Management Safety and Security C5-6-2 D Definitions...54 Digital Strategies Advocacy GS-1-4 NEA staff training gs-1-4 Online organizing gs-1-4 Professional collaboration gs-1-4 SEA leaders training gs-1-4 SEA staff training gs-1-4 Diversity Training Program C3-4-1 E Early Career Support Digital organizing gs-1-1 Engagement platform gs-1-1 MLT/WLT training c3-4-1 One on one conversation gs-1-1 Organizing efforts gs-1-2 Professional development gs-1-1 Professional supports gs-1-1 Early Childhood Education Leadership Cohort (ECELC) C1-2-1 Employee Benefit Plan analysis g1-3-1 Education International Support C6-3-2 Education Support Professional Quality Anti-privatization campaigns g2-2-1 Best practices g2-1-1 Job security g2-1-1 Leaders for Tomorrow G2-1-1 National Conference G2-1-1 National Council (NCESP) C6-2-1 Professional development g2-2-1 Publications C4-6-5 Whole Student G2-1-1 Educational Equity C3-2-5 Educators Employment Liability (EEL) Insurance C3-2-3 Electronic Billing C3-2-2 Electronic Policy Library C6-1-1 English Language Learners (ELL) Legislation C3-1-1 Training C3-2-2 Elementary and Secondary Education Act (ESEA) C3-5-2 Enterprise Data System GS-4-1 ESP Conference G2-1-1 Ethnic Leaders Meeting C3-2-5 Every Student Succeeds Act (ESSA) Advocacy campaigns c4-1-1 Federal policy implementation gs-2-1 Grassroots partners c2-1-1 Implementation team g1-2-1 Legislative C3-1-1 Member activist training c3-2-7 Member advocacy c3-2-7 Non-traditional strategies gs-1-1 Policy advocacy c3-2-1 Policy advocacy program g1-1-1 Policymaking GS-1-2 Public policy c3-3-1 State policy implementation gs-2-1 Traditional strategies gs-1-1 Executive Committee Support C6-1-2 Executive Officers Support C6-1-2 F Fidelity Bond Program C3-2-3 G Goals Shared Tactics...9 Governance...48 Great Public Schools Activism C3-5-2 Advocacy campaigns c4-1-1 Family legislation c3-1-1 Federal legislation c c3-5-2 Federal public policy c1-1-1 Grants G2-1-1 Pro-public education legislation c3-1-1 Green Initiatives C5-6-1 H HCR Awards Dinner C3-2-5 Healthcare Benefits C5-2-2 Laws C3-2-1 Policy C3-2-4 Reform C3-2-1 Training C3-2-1 Wellness Program C5-2-2 Higher Education Advocate C4-6-5 Thought & Action C4-6-5 How Your Dues Dollars are Allocated Active teaching professionals...61 Education support professionals (ESP)

137 Index PAGE PAGE SUBJECT NO. SUBJECT NO. I Information Forum and Town Halls C6-3-1 Individuals with Disabilities Education Act (IDEA) C1-2-1 Institutional Racism Advocacy priorities c3-3-1 Affiliate awareness g2-4-2 Affiliate-branded programs g g2-1-1 HCR Awards Dinner C3-2-5 NEA Board Observances C3-2-5 Opportunity gaps gs-2-1 Partnerships GS-2-1 Plan development g2-4-2 Plan implementation g2-4-2 Social injustice g2-4-2 Social justice gs-2-1 Student outcome gs-2-1 Training G2-4-2 Internal Auditing C5-1-4 Introduction...3 Index...63 J Joint Conference on Concerns of Minorities and Women C3-2-5 K K 12 Legislation C3-1-1 L Leading the Profession Policy Advancement C1-1-1 Train Minorities C C3-4-1 Train Women C C3-4-1 Local Presidents Release Time Support C2-1-4 M Member Benefits C5-5-1 Member Data Data share gs-1-3 Engagement opportunities gs-1-3 Member Engagements Best practices g1-1-1 Tools G C6-3-1 Member Engagement Program GS-4-2 Membership Legal action c4-1-1 Legislative action c4-1-1 Political action c4-1-1 Message Strategies Media training gs-3-1 Message training gs-3-1 Messaging Message training c4-4-1 Training materials c4-4-1 Minority Community Advocacy C3-3-1 Organizing C3-2-7 Outreach C3-2-7 Leadership C3-4-1 Mission Statement...1 Model Implementation Community schools g2-3-1 N National Council of Education Support Professionals (NCESP) C6-2-1 National Council of Higher Education (NCHE) C6-2-1 National Council of State Education Associations (NCSEA) C2-1-2 National Council of Urban Education Associations (NCUEA) C2-1-1 National Education Employees Assistance Fund (NEEAF) C2-1-4 National Organization of Lawyers for Education Associations (NOLEA) C5-1-5 NEA360 Analytic infrastructure GS-4-1 Content development GS-4-1 Database C3-5-1 Enterprise adoption process GS-4-1 Enterprise data system (EDS) GS-4-1 Feedback GS-4-1 Learning program GS-4-1 Strategic Goals GS = Goals Shared Tactics G1 = Strong Affiliates for Educator Voice and Empowerment G2 = Empowered Educators for Successful Students Core Function Areas C1 = Research, Policy, and Practice C2 = Organizing C3 = Advocacy and Outreach C4 = Communications C5 = Business Operations C6 = Governance 65

138 Index PAGE PAGE SUBJECT NO. SUBJECT NO. State affiliate programs GS-4-1 Work process mapping GS-4-1 NEA Foundation (NFIE)...58 NEA Fund for Children and Public Education C5-1-2 NEA-NCSEA Financial and Operational Standards Guidelines C2-1-2 NEA Retired C6-2-1 NEA Today C4-6-5 NEA Vision, Mission and Values...1 O On-line Products Communication C4-5-1 Multimedia C4-5-1 Organizing Center for Organizing C2-1-1 Higher Ed C2-1-1 Membership C2-1-1 NCSEA C2-1-1 NCUEA C2-1-1 Retired C2-1-3 Training C2-1-2 Organizing Best Practices C2-1-1 P Partnerships and Collaborations Community C3-1-1 External organizations c3-2-4 NEA-NCSEA C2-1-4 NEA-NCUEA C2-1-1 Pension and Health Care Benefits C5-2-2 Laws C3-2-1 Policy C3-2-4 Reform C3-2-1 Training C3-2-1 Policy Briefs C3-2-6 Library C6-1-1 Public C3-2-1 Professional Practice Leaders GS-1-1 Publications Constituency Future Educators C4-6-5 Higher Education Thought and Action C4-6-5 NEA Today C4-6-5 RA Media C4-6-6 R RA Communications C4-6-6 Recoveries...56 RA Meeting Coordination C5-6-2 Read Across America Media outreach c4-3-1 Report of the Program and Budget Committee...5 Representative Assembly Standing committees c6-2-1 Support C6-1-4 Teacher of the Year C6-1-3 Retirement Benefits/Plans C3-2-1 Retired Council C6-2-1 Risk Management Program Business continuity c5-6-2 Crisis management c5-6-2 Internal Auditing C5-1-4 Safety C5-6-2 Security C5-6-2 S School Transformation Technical assistance g2-3-1 Shared Messages State affiliates c4-4-1 Small States Foundation C2-1-4 Social Justice Partners ELL C3-1-1 Minority leadership training c3-4-1 Women s leadership training c3-4-1 Social Justice C3-4-1 Standing Committees of the Board C6-2-1 State Affiliates Grant C4-4-1 Strategic Goals...6 Strength, Weaknesses, Opportunities And Threats Analysis C5-4-1 Student Future Educators C4-6-5 Whole Student G2-1-1 T Teaching and Learning Issues Affiliate support g2-2-1 Collaboration GS-1-2 Organizing GS-1-2 Partnership GS-2-1 Public messaging plan gs-3-1 Return-on-investment GS-2-1 Trainings Cultural Competence C3-4-1 Diversity C3-4-1 Social Justice C3-4-1 UniServ C

139 Index PAGE PAGE SUBJECT NO. SUBJECT NO. Technology Compact Committee C5-5-1 Trusteeship G1-3-1 U Unified Legal Services Program (ULSP) C3-2-2 Unified State Executive Director Program (USEDP) C2-1-3 UniServ Fund Program C2-1-4 V Vision Statement...1 W Webcasts Board of Directors C6-3-1 Delegates C6-3-1 State Leaders C6-3-1 Y Young Member Engagement ESSA implementation c2-1-3 Strategic Goals GS = Goals Shared Tactics G1 = Strong Affiliates for Educator Voice and Empowerment G2 = Empowered Educators for Successful Students Core Function Areas C1 = Research, Policy, and Practice C2 = Organizing C3 = Advocacy and Outreach C4 = Communications C5 = Business Operations C6 = Governance 67

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