LES Rates Stable, for Now

By: Mr. Wilson on November 21, 2006
The good news is, LES hasn't asked for a rate increase for next year. Last year's 4.5% rate increase, along with a group of new fees, has improved LES' bottom line. The bad news is, they will probably ask for one next year. One item worth discussion is LES' advertising budget. The Lincoln Employers Coalition wants it cut. The current advertising budget is $400,000, and it is mostly directed toward informational and educational advertising. (i.e. "Here's how you can save money on your electric bill...") Trying to pare down $400,000 in an almost $200 million budget seems a little silly, but I suppose the group figures it has to start somewhere. Fair enough. Still, spending less than $2 per Lincolnite for informational and educational advertising doesn't seem unreasonable to me. Perhaps what the Lincoln Employers Coalition needs to do to convince me is to speak in terms of what they would cut (and what they would leave), rather than in dollar figures. Then I could be a better judge. What's your take on it?

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foxspit
November 21, 2006 at 2:23PM

Good information, thanks for posting it Mr. Wilson!

I agree, $400,000 is nothing in that $200 million budget.  And I don’t see LES being frivelous with its ad dollars, especially if it is, as you say, mostly directed to informational/educational advertising.

What is the Lincoln Employers Coalition and what oversight, if any, does it have over LES?  If lowering the budget is the groups goal, it seems like they’re focusing in the wrong place to me.

Mr. Wilson
November 21, 2006 at 3:00PM

According to the Journal Star:

The Lincoln Employers Coalition, which includes Goodyear, Kawasaki, Duncan Aviation, Pfizer, Lincoln Plating, Linweld and others, represents more than 14,000 jobs.

I don’t remember if they formed because of last winter’s rate hike discussions, or if that’s just when I first heard of them. Their interest is in keeping LES’ budget low primarily because they pay a big chunk of it.

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