1. 1 AARP Tax-Aide 2009-2010 Budget Management NY3

2. Current Environment  Growth in expenses  Shrinkage in Available Funds  New funds being sought may offset current AARP funding reduction.  Desire to serve more clients as the economic environment is likely to increase taxpayer demand.

3. National Facts Regarding Expensed  Program has 34K Volunteers  Program has grown 8% since 2006  Expenses have grown 18% since 2006  Volunteer reimbursement is over $5M

4. Costs and Growth Comparisons 1 Grant Cycle 2008-2009 NationalNorth Atlantic NY3 Cost per volunteer $186$175$196 Cost per return $4.20$4.51$4.86 Expense growth last year 11%9%12%

5. Grant Cycle 2008-2009 NationalNorth Atlantic NY3 Counseling Expenses 54%59%54% Leadership Expenses 10%8%5% Instructor Training 11%10%19% Meeting Expenses 9%7%9% E-Filing Expenses 13% 11% Other Expenses 2% Total$6,448,192$720,204$109,509 Volunteer Expense by Activity

6. NY3 Counselor Activities Volunteer Reimbursement Report Expenses thru July ‘09 Percentage of Volunteers AmountPercentage of Total Expenses Flat Rate46%$7,9059% Itemized54%$50,59660% Total Reimbursed Expenses = $84,138

7. Management of Expenses Our program needs to address increased expenses and growth WHILE maintaining Volunteer satisfaction and retention as well as our equipment inventory

8. Potential Income Growth  Donated funds and/or equipment  Site owned equipment  Efficient utilization of equipment Potential Cost Reductions  Miles driven  Mileage reimbursement (rate and total)  Supplies – On line ordering of some consumables and equipment maintenance contract.  Reduction in meeting charges (alternatives?)  Number of manuals produced in hard copy (done)  Availability of shirts (done)  Ceasing appointment letters for leaders (done)

9. Current Action Plan /Outlook  Discretionary equipment deferred until at least January  Orders will not be placed until then.  These funds may be at risk  No replacements for Category 1 equipment  AARP funded portion of 2010 budget reduced ~ 5-10%  Two unknowns regarding IRS 2010 funding  IRS mileage rate  How much our IRS grant awards will be.  Encourage volunteers to take the flat rate where affordability is not an issue  Place a cap on mileage exceptions