The National Education Association and State Affiliates: A $1.5 Billion Annual Enterprise

posted at 1:36 pm on April 27, 2011 by Mike Antonucci

An Education Intelligence Agency analysis of Internal Revenue Service filings by the National Education Association and its state affiliates reveal the union amassed more than $1.5 billion in revenue in 2008-09, more than 90 percent of it in the form of dues from public education employees.

EIA created a table, now posted on its web site, that lists the financial figures for NEA and each of its 53 “state” affiliates (50 states plus the directly affiliated Federal Education Association, which represents NEA teachers overseas and on military bases, the University of Hawaii Professional Assembly, and the Utah School Employees Association). The numbers include each union’s total revenues, dues income and the amount devoted to employee compensation.

The statistics do not include the income of any of the union’s 14,000 locals, whose totals would range from the significant (for example, the $3 million annual revenue of the San Diego Education Association) to the nonexistent, in the case of small affiliates that collect no local dues.

NEA and its affiliates are all tax-exempt organizations. If they were defined as a charity, they would rank no worse than 13th in the nation – well ahead of the American Cancer Society, Habitat for Humanity, and the Nature Conservancy. Their one-year income exceeds the entire endowments of all but 43 charitable grant-making foundations, including the Broad Foundation and the Heinz Endowments (and close to the Annenberg Foundation).

The figures show that only a handful of affiliates felt the early effects of the recession. NEA national saw a 2.7 percent increase from the previous year, and some affiliates had double-digit increases in revenue. However, there were signs of financial troubles ahead.

The California Teachers Association and others saw significant declines in revenue, almost entirely due to poor investment returns. In the case of CTA, dues income actually exceeded “total” revenue because of investment losses.

Increased liabilities for employee compensation caused additional worries. The numbers in the table include not only salaries and benefits for current teacher union staff, but set-asides for their pensions and post-retirement health care. In most cases, the growth in the amount devoted to these purposes greatly exceeded the increases in income.

It would be ironic if the union’s own labor costs forced it to make dramatic budget reductions or dues hikes. NEA and its state affiliates combined currently spend more than $820 million on some 7,000 employees (the number of retirees is unknown). In five states (Illinois, Indiana, Mississippi, Oregon and Washington) dues income failed to cover the costs of employee compensation.

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Heh.

Jaibones on April 27, 2011 at 1:37 PM

Hopefully if they do have to cut back on staff their staff will unionize… with a different union, of course.

They hate that.

ajacksonian on April 27, 2011 at 1:47 PM

The NEA staff is unionized with their own union. Take a look at this:

http://www.heartland.org/custom/semod_policybot/pdf/15383.pdf

Mike Antonucci on April 27, 2011 at 1:57 PM

Tax Exempt???

PatriotRider on April 27, 2011 at 1:59 PM

Mike Antonucci on April 27, 2011 at 1:57 PM

Then they have a heartless union to let such diligent workers go… they need to change unions and get some real representation against these heartless, moneygrubbing fiends.

ajacksonian on April 27, 2011 at 2:01 PM

In five states (Illinois, Indiana, Mississippi, Oregon and Washington) dues income failed to cover the costs of employee compensation.

Just goes to demonstrate that not all educated people are smart people. Maybe they think they are too important to reduce expenses after revenues fall.

ExpressoBold on April 27, 2011 at 2:04 PM

No worries, a bailout should be forthcoming. Too big to fail!

spaninq on April 27, 2011 at 2:07 PM

With that kinda mullah, they can buy practically anything!

Oh…

Shy Guy on April 27, 2011 at 2:13 PM

It’s for the children.

Akzed on April 27, 2011 at 2:31 PM

So taking away manditory dues would really hurt them big time.

Hey, how about they stop buying politicians and funding sill protests and work on getting those test scores up.

petunia on April 27, 2011 at 2:36 PM

No money problems there. But I suppose all that cash “is for the children”.

GarandFan on April 27, 2011 at 2:58 PM

I went to the home page of the link and was able to look at the school districts in my state. I am in shock. I found a school district in Kansas with 12 students! Spending per pupil in that district is $97417.00 and the school districts state wide are squealing like pigs over budget cuts.

bopbottle on April 27, 2011 at 3:03 PM

Apparantly none of the teachers can do math.

docflash on April 27, 2011 at 3:09 PM

Windfall profits taxes are starting to look pretty good.

percysunshine on April 27, 2011 at 3:46 PM

Of that 1.5 billion, how much ends up going toward the election of democrats?

karenhasfreedom on April 27, 2011 at 3:49 PM

Of that 1.5 billion, how much ends up going toward the election of democrats?

karenhasfreedom on April 27, 2011 at 3:49 PM

At least 90%, is my “educated guess”…

Khun Joe on April 27, 2011 at 5:21 PM

Hopefully when all the unions are abolished we can move forward and be as successful as all the other countries out there without unions, or at least as advanced and prosperous as we were before unions.

Dr. ZhivBlago on April 27, 2011 at 8:10 PM

Of that 1.5 billion, how much ends up going toward the election of democrats?

karenhasfreedom on April 27, 2011 at 3:49 PM

At least 90%, is my “educated guess”…

It’s really starting to bother me that my tax dollars are being used against me.

Trainwreck on April 27, 2011 at 10:17 PM