I just read a blog post over at Dave Baglers’ blog. Given that of late, Dave has been unashamedly defending the Central Party status quo against all comers, I have drawn the conclusion that this is a trial balloon being floated by centralising forces, (read: The current Leadership), at the hollowed out Ottawa head office. Dave, if it ain’t so, then by all means respond in the comments.
Here’s a copy of the RSA as enacted. (Thanks Dave): Revenue_Sharing_Implementation_Plan_as_adopted_Nov-20-2005_formatted
I’ll get to my meat and potatoes argument about the viability of the RSA in a minute, but first a little background. The Green Party of Canada is in a financial pickle. In my humble opinion, this is a self-inflicted wound. The GPC has extremely predictable revenues. There is the federal per-vote subsidy, which is shared with Electoral Districts, and Provincial Divisions according to a predictable formulae. There are pretty stable revenues from the central Party’s fundraising. (yes, I’m referring to those emails you get once or twice per month). There are election expense refunds, which are one time shots to re-imburse funds after a general election. That’s it on the Revenue side. On the expenses side of the equation, there are payrolls, rent heat and lights, Insurance, some travel for council purposes, and a plethora of other, predictable period expenses. Then there’s discretionary spending.
A well managed organisation would look at an extremely predictable revenue flow, and then allocate their resources according to a priotised list of things-to-do-that-cost-money. Mandatory processes, like reporting and compliance would be top priority. Why? Because they are legal obligations. Other totally predictable obligations would be funded in descending order of priority. Council would be there to argue with staff over priorities, and to make sure that priorities like team building trips to the Bahama’s don’t get off the ground. Once you get to the point in your list where the money has all been allocated, you have a budget. When you want to argue about additional priorities, you either craft a plan to enhance your’ resources, or you bump something off the list to make way for the new priority.
This process isn’t rocket science. It’s something that the Prussian Civil Service excelled in back in the 1600’s, and it’s called budgeting. The Prussians did it well, which is why they rose from obscurity, and became a Great Power. Now if you fail to follow a process something like this, it doesn’t change the resources you have to dispose of. It doesn’t change the obligitory expenses either. By itself, what it does do is ensure that you don’t have many unexpected surprises.
Last month, the Green Party membership was surprised to discover that there was a fiscal emergency. Organisers had to be sacked, Catherine Johansen ‘resigned’ from the Election Readiness Committee, and a whole bunch of panic started in the Ottawa office. All of a sudden, the election debt had to be retired, and as if by magic, there just isn’t enough money in the darned bank. Now the terms and conditions of the election loans were clear and explicit. The payroll costs were 100% predictable. The discretionary spending? A total grab bag of unprioritised spending. Jobs for friends in Nova Scotia. Toss a whack of money to Adrian Carr’s Provincial Division in BC. Let’s toss $50 grand to the SGI Campaign for Elizabeth. Yes, I know that the last item was supposedly the top priority for the Party, but where were the cuts to the budget to accomodate it? Did council even consider that this brand new top priority meant that organisers had to be fired? Were YOU aware that you were going to lose your’ Provincial organiser because of it?
Remember folks, within ten minutes of the electoral returns being publicised, our Leader and her council knew within 5% what their resources would be. If they knew what one was, they could have created a Schedule of Receipts and Disbursements that nailed cash flows by date, within a very narrow band. Did they do so? NO. Did they prioritise and exercise their fiduciary duty to the membership? NO. This so-called crisis was created by our Federal Council, and it was created by Elizabeth May, plain and simple. Now some will accuse me of a biased, and unbalanced attack, because I have posted this blog. That is untrue. I would lambaste anybody who mismanaged my Party’s operations so badly. Some people would encourage me to refrain from public criticism, because it may spoil the electoral chances of Elizabeth May in SGI. My response is, don’t shoot the messenger. Our finances are pretty public, and there are opposition researchers eagerly awaiting our next public accounting. Better a trickle of negative reporting now to turn it into yesterdays news that much quicker. If we wait until the ‘AHA!’ moment when the finances are public, then timing is outside our control.
So what’s this got to do with the title of this post? By now that’s becoming obvious, no? If council is truly planning to revoke the ‘Sharing’ part of the Revenue Sharing Agreement, then I would like to be on the record before the bunfight begins. Revoking the RSA will be promoted as an ‘Emergency Measure’. The emergency was a product of fiscal incompetence. I would personally prefer to revoke council, and the Leadership, and I suspect that, were the truth known, a substantial portion of the Green Party membership would be upset enough to share this opinion. The root cause of the problem is that our Leadership is not competent to manage our money. The RSA was created out of a huge bruhaha back in the day. It was argued over, negotiated, brokered, debated by the membership, work-shopped, voted on by the membership at large, and finally, grudgingly enacted by Council. Dumping it to grab some more resources will not fix the incompetence in Ottawa. It will simply paper over the cracks. It’s absolutely guaranteed that the Leadership will continue to fritter, and fail to set priorities, so we’ll be back in the hole again immediately. In the meantime, the EDA’s will be boiling mad, and out for the Leaderships blood. Can you spell: Recall Motion? Not very good politics, eh?
The RSA was predicated on several motions passed by the membership in years gone by. It was intended to promote the formation of EDA’s, while still allowing for the Party Hub in Ottawa to have predictable cash flows. There are arguments that could be made that not all EDA’s use the money wisely. There are arguments that could be made that the RSA was created by council, therefore it can be revoked by council. There are also arguments that could be made that Provincial Divisions are really problematic under the Elections Act. While these arguments may have lot of merit, it’s moot. Why? Because the membership has spoken, council was fulfilling their mandated role when they enacted the RSA. The EDA share has definitely promoted EDA formation, and endurance. Even in the lamest EDA, there is a degree of continuity because they don’t want to abandon their bank account, and revenue sharing cheque. Who cares if some of them aren’t picture perfect organisations? The membership mandated that they get a share, this mandate has proven very effective at achieving it’s stated purpose. Just take a look at the last elections results. A growing number of local campaigns are breaking the 10% threshold, and surprise, surprise, they all have EDA’s in place to back them up.
Provincial Divisions are another kettle of fish. The membership, and RSA mandated that Provincial Division formation be promoted as well. That was before it became abundantly clear that the revisions to the Election Finances Act had rendered PD’s obsolete in Canada. Because Provincial Divisions are not legally seperated from the National Party accounts, it is problematic to ask the Party’s financial agent to be responsable for the books and spending decisions, unless thay are as directly under the Agents control as the National Party is. Why go through the cumbersome exercise of transferring money, and then scrutinising it seperately?
So now we have come full circle. As usual, I have digressed, and tread a tortuous path to my conclusion. We have a Leadership race coming up. Our current Leadership has demonstrated that they are not competent to fulfil their fiduciary, and governance duties. Draw your’ own conclusions, but perhaps you should consider a new Leader? One who can actually demonstrate some competence in the real world? Stay tuned, and soon I’ll be able to table another option for you, and I think you’re gonna like her and her team!
Filed under: Electoral Finance, Internal Green Politics, Organizing, Uncategorized | Tagged: election finance, green party canada, Green Party of Canada, green party organizing, internal green party politics, Leadership race |