The budget will bring anticipated revenues of $128,840,000 against $134,803,000 in expenses, generating a net loss of $5,963,000 before reserves.
It also includes an $8 dues increase to keep up with inflation and help offset a projected 4.4% deficit the Association is facing as a result of COVID-19. Res. 88 sets 2021 dues at $573 plus implementation of dues streamlining adopted by the 2019 House of Delegates, which eliminates the discount for active life membership and shortens the discount period for recent dental school graduates.
“This pandemic is like no event we've seen before and its unpredictable nature makes planning for a budget especially difficult,” Dr. Sherwin said. “We can be optimistic about our future because we've built reserves that have enabled us to endure the hardships of the current crisis while making a strategic investment for the future despite our short-term troubles.”
Examples of those investments include creating the American Dental Association Science and Research Institute, which combines the ADA Science Institute in Chicago with the innovation and technology research group in Gaithersburg, Maryland, to enhance the ADA's ability to produce basic and translational science for the benefit of dentists and their patients. The ADA will also continue to advance the ADA’s digital transformation in order to find new ways for members to engage with the ADA. He also pointed to funding non-dues revenue-producing activities such as the Royalty Reserve Fund and ADA Practice Transitions as important, fiscally-sound investments for the Association.
ADA President Daniel J. Klemmedson, D.D.S., M.D., agreed with Dr. Sherwin’s assessment.
“The economic fallout of COVID-19 has created a need for fiscal discipline and focus,” said Dr. Klemmedson, who was installed as ADA president earlier in the day. “Fortunately, ADA foresight has allowed for reserves accumulation that will allow us to weather much of the effects of this pandemic. However, investment in assuring our future is more important than ever. I am confident that the Association will continue to maintain financial sustainability as we remain committed to the ADA’s mission to serve the profession and the public.”
The ADA House of Delegates met virtually Oct. 15-19. Board Report 2 and other reports are available in the members only section of ADA.org, contained in the Committee A reports and resolutions document.