Economic downturn hits the Bar.

The national recession has reached The Florida Bar.

Stock market turmoil has impacted the Bar's investments and President-elect Jesse Diner said after several years of budgetary surpluses, the Bar may run a deficit in its 2009-10 budget. But he added that does not mean the Bar is looking to increase its annual membership fees.

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The Bar also has received an excellent audit for the 2007-08 fiscal year.

The sobering financial news was presented to the Board of Governors at its December meeting in Orlando.

Investment Committee Chair Ian Comisky reported that the Bar's investment portfolio has declined, although remains more conservative and less volatile than the broader financial markets. With broader market indexes down 35 to 45 percent for the year, the Bar's portfolio has had a 15 percent decline.

The losses do not impose any risk that the Bar will not be able to meet its obligations, he said.

"We have a long-term view of positions in the portfolio, and we are allocated as best we can, and we are over-allocated in [conservative] bonds and in cash. The reality is there is no safe place in the market," Comisky said. "In this environment, we are doing the best we can."

Since the stock market precipitously declined and experienced giant swings in the past few months, the committee has met three times with the Bar's investment advisor, James Bagwell of Morgan Stanley, to monitor the gyrations. For now, he said the committee feels no change is needed, noting the market has already recovered somewhat from its lows of October and November.

"The committee has decided to stay the course on...