Re: [ga] Registrars and ICANN Budget Approval

[DannyYounger@cs.com]

The following was just posted to the registrars list:  
http://www.dnso.org/clubpublic/registrars/Arc01/msg02625.html

    Dear fellow ICANN accredited registrars:

    On behalf of the VeriSign Registrar (formerly known as the Network
Solutions Registrar), NameSecure, SRSPlus, and NameEngine, the registrars of
VeriSign believe that it is unwise at this time to react to the proposal to
increase ICANN spending in 2002/2003 by 25% or more.  Such spending
increases may - or may not - be necessary and justified, but we do not see
how anyone could reach that conclusion at this point in time.  Consequently,
we think that basic and sound planning requires that ICANN's proposed budget
(fiscal year July 1, 2002 to June 30, 2003), remain at the same levels as
the current budget (fiscal year July 1, 2001 to June 30, 2002), until such
time as ICANN completes its current structural review. 

    As most organizations, we at VeriSign develop budgets that are based
on fairly specific assumptions about functions, structure, organization,
activities, and their consequent effect on expenses.  Most organizations do
the same.  It would not be a sound business strategy for any organization,
profit or non-profit, to enter into major new spending commitments at the
very time that they are in the midst of a strategic review.  We are not
rejecting the current budget proposal outright, we are simply stating that
at this point in time, given the major review that is underway,  it is not
fiscally prudent for a budget to enter into significant new, long term,
financial commitments that will increase the current budget by 25% or more
(see http://www.icann.org/financials/proposed-budget-15may02.htm#fn1 to note
that the current 25% increase omits some expenses - the actual percentage
increase could be higher).

    As ICANN continues its efforts to define a sound restructuring and
time frame for implementation, if necessary, it should be possible to set a
time in the future, perhaps before the new fiscal year ends, to increase the
budget with necessary and defined expenses.

    Respectfully,

    Bruce Beckwith
    on behalf of the VeriSign Registrars
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