It looks as though the financial crisis at IEEE is finally under reasonable control. The problem was generated by the good financial climate of the late 1990’s. A large fraction of IEEE’s reserves was invested in the stock market, and budgets were based on the premise that we could depend on this investment income. When the market tanked, IEEE had long-term obligations and a culture of operation that was too expensive for its income.IEEE handled the shortfall by taking control of the reserves, which had been generated by the societies and had traditionally been used to enhance the quality of the individual society and insure against any operational shortfall. The IEEE tax on our society 2000-2003 was approximately 2.3 million dollars. Fortunately, we are a well run society and we had 2.7 million in reserves in 2000. The tax was paid from our operating income and the reserves, which reduced our reserves to 1.7 million. This year our budget indicates we will be adding a small amount to our reserves. In addition, I have been asked to be on a TAB committee to develop guidelines for funding new initiatives for developing our societies. This indicates that IEEE is expecting a surplus in the coming years.

For a little more than a year the IEEE has been trying deal with a troublesome problem that goes against the grain of a society, which has the dissemination of new scientific knowledge as one of its core values. The problem involves the nations in the so-called axis of evil, Cuba, Iraq, Iran, Libya and North Korea. We are not allowed to have members from these countries. In addition, we can only accept contributed papers from these countries if they require no editing or changes required by a reviewer These changes constitute added value to the paper, which is commerce with those countries, which is illegal. This seems to be a free speech issue. However, IEEE is dealing with the issue carefully to avoid problems with their status as a nonprofit entity. IEEE has applyied for an exception and the bureaucrats are moving very slowly on making any determination on this application. IEEE as an organization must be careful on this issue, but as individuals, you have the right to complain to your senator or member of congress about this.

Ed Hoffman, the NPSS President, can be reached at the UCLA School of Medicine, 10833 Le Conte Avenue, B2-096 CHS, Los Angeles, CA 90095-6948; Phone: +1 310 825-8851; Fax: +1 310 825-4517; E-mail: ieee_ejh@mednet.ucla.edu