State Bar Board Discusses Budget, Approves Keller Reduction

March 4, 2026 – The State Bar of Wisconsin’s 53-member
Board of Governors (Board) discussed the proposed fiscal year 2027 budget (July 1, 2026 to June 30, 2027) and set the
Keller dues reduction amount at its Feb. 27 virtual meeting.

The budget arrived at the Board after Finance Committee approval and unanimous approval of the Executive Committee.

Interim Director for Administration and Finance, Jackie Jacobson, presented the proposed budget, outlining the process that built it.

The first round of the draft budget in November had a deficit of $766,163. Staff then went back with the goal of a balanced budget and found increases in revenue and reductions in expense costs of $435,028, which brought the bottom line to a deficit of $331,135.

At this point, it was safe to count in predictable interest and dividend income, Jacobson told the Board, estimated at $238,000, reducing the deficit to $93,000.

Only at this point was a dues increase considered. After “the Finance Committee had a lengthy discussion,” it proposed a $6 dues increase, Jacobson said. This 2% increase comes in under the rate of inflation, which was 2.7% in December and 2.4% in January.

The dues increase gives the bottom line a surplus of $29,193. With unrealized gains and losses on State Bar investments of $54,337, the final bottom line on the proposed budget is a positive $83,530.

The budget will come up for a vote at the April 10 Board meeting.

At the meeting last week, Treasurer Steven J. Krueger briefed the Board of Governors on the Keller dues rebate amount. (File photo from September 2025).

Perspective

President Dan Gartzke placed the proposed dues increase in perspective. For the five previous budgets, dues increased as much as $15 in 2024, placing the increase within recent norms.

The small surplus is “cutting it very close” but the “dues increase is appropriate under the circumstances,” Gartzke said.

“We wanted to keep the dues increase as low as possible while still being fiscally responsible,” Gartzke said.

Dist. 4 Gov. Julie Stodolka raised a concern that “we’re kind of defaulting to the position that our bar dues will go up roughly approximating inflation.”

“Our process has always been to go through and look at revenue adjustments, look at expense cuts, look closely at personnel costs, and our last option is always a dues increase if needed,” Jacobson clarified.

Past President Ryan Billings explained that the State Bar faces the challenge of only two sources of income, dues revenue and non-dues revenue from products in “a very mature market.”

The State Bar is working on increasing product revenue alternatives, Billings said.

The budgetary goal wasn’t to “increase dues by the amount of inflation this year,” Billings said. “The point, rather, is we always want to make sure that, as a last resort, dues are less than inflation, and they have been since at least 1983.”

Board Chairperson Jennifer L. Johnson led the Board’s February meeting, which was held remotely. (File photo from September 2025).

Keller Dues Reduction

The Board set at $12.50 the amount that members will be able to deduct from their dues under the U.S. Supreme Court’s ruling in
Keller v. State Bar of California, 496 U.S. 1 (1990).

Under
Keller and Wisconsin
Supreme Court Rule (SCR) 10.03(5)(b)1, the State Bar may not use compulsory dues of objecting members for activities that are “not necessarily or reasonably related to the purposes of regulating the legal profession or improving the quality of legal services.”

The State Bar must annually publish notice setting forth each member’s pro rata portion of dues that are not necessarily or reasonably related to these dual purposes. Members may elect to withhold the pro rata portion of nonchargeable dues on dues statements.

All direct state and federal lobbying activity is included in the
Keller rebate calculation by Board policy, even lobbying activity deemed germane to regulating the legal profession or improving the quality of legal services.

The Board’s decision in 2018 to include all direct lobbying activity in the rebate amount, as a State Bar policy, recognized and continues to recognize the concerns of members who object to the use of mandatory dues for any direct lobbying activity, regardless of what
Keller permits.

The
Keller rebate amount includes all direct lobbying activity, and other activities determined by the Executive Committee to be non-chargeable to membership dues given the State Bar’s well-established
Keller process.

At the meeting last week, Dist. 9 Gov. Sam Wayne discussed the work of the Board’s Policy Committee, which put forth recommendations for updating board policy positions. (File photo from December 2025).

Other Items

Dist. 9 Gov. Sam Wayne presented the Policy Committee recommendations for updating the Board’s policy positions in the “white book,” which the Executive Committee unanimously approved for discussion in February.

The proposal includes “sunsetting a bunch of positions that are no longer relevant” as well as smaller, technical changes in word use to make the policies clearer and more aligned with the State Bar’s values.

The item will come up for action at the April Board meeting.

In other matters:

• the Board approved amendments to the Real Property, Probate and Trust Law Section’s bylaws.

• the Board approved the appointment of
  Past President Dean Dietrich of Wausau to the Access to Justice Commission.

Members may obtain a copy of the minutes of each meeting of the Board of Governors by contacting State Bar Executive Coordinator Kim Jansen by email or phone at 608-250-6106.