NBI Costing FAQs
What is the process for costing out New Business Items?
An NBI Committee (NEA secretary-treasurer, one member of the Board of Directors elected by and from the Board, and three RA delegates appointed by the President) reviews each NBI, consulting with the Chief Financial Officer and directors of relevant NEA departments. The Committee makes a preliminary cost estimate of each item and determines if it is already covered in the Budget.
Why do items that would seem to have little or no cost (such as writing a letter or an article in existing publications) have cost implications?
The NBI Committee always considers whether the proposed work is contemplated under the Strategic Plan and Budget or if it is outside the scope of planned work. Items outside of the Budget always have a cost, as they require shifting staff from budgeted items or hiring consultants to implement. Department directors assist the Committee in determining how many staff hours will be required, and a cost is assigned based on a pre-determined daily rate. Communicating using existing NEA vehicles does not eliminate cost. Staff time to research and write must be calculated. In addition, if an item is not already on a publication schedule, additional pages may be needed, thereby increasing the cost of producing, printing, and mailing the publication.
How do we cost out:
- Printing, photocopying, and mailing tasks? Pre-set modules establish costs per unit based on the type of publication (booklet, newsletter, single sheets, brochure, etc.), number of pages, whether the item will be in color or black and white, and how many copies will be required. Mailing costs are set based on first class postage cost per unit. Staff cost is calculated based on the number of hours estimated to complete the project.
- Travel? Pre-set modules establish costs for air, hotel, meals, and miscellaneous expenses depending on the estimated number of days.
- Surveys and other research? Pre-set modules establish costs based on minimum recommended sample size for the required respondent population -- NEA members, likely voters, state and local affiliates, and UniServ staff. Staff cost is based on the number of hours estimated to complete the project. Consulting costs are based on hourly rates and the level of effort typically incurred for the work requested.
- Rallies and similar events? Costs rallies and marches include travel, housing, food, transportation at the site, staff time, publicity, permits, and other expenses associated with planning and executing a large-scale event.
- Items that call for notification to or participation by state and local affiliates? NEA has 52 state affiliates, 14,000 local affiliates, and three million members. The cost of notification to members or affiliates is determined by modules using first class postage and the cost of producing (including staff time) and printing required items. NBIs calling for electronic notification require staff time to produce required items. NBIs calling for participation by members or affiliates take into account staff time to organize and evaluate a large number of responses.
What is the NEA World of Information?
The World of Information assists delegates with questions prior to debate on an NBI. Delegates can then use the information to speak for or against a motion. Staff do intake and refer questions to appropriate content experts. If questions cannot be answered immediately, staff take contact information and get back to the delegate as soon as possible.
What is the NBI Consolidation Committee?
The Consolidation Committee assists delegates in consolidating NBIs that are similar in nature. The committee reviews NBIs as they come in and identifies similar items. They contact makers to see if they are amenable to consolidating their NBIs into one item, and then assist the makers in consolidating the items. No makers are required to consolidate NBIs if they do not wish to do so.
What happens to NBIs Referred to Committee?
NBIs referred to committee are reviewed by the NEA Executive Committee to determine whether they can be accomplished under the current Strategic Plan and Budget with existing staff and resources, and whether implementation is advisable given the Association’s priorities. Items approved for implementation are then assigned to NEA Centers or committees. Referred NBIs have no funds attached, therefore, the cost must either be covered under the existing NEA budget or taken from the contingency fund.
