(a) Each local campaign manager will submit to the state campaign manager the proposed budget for the local campaign area. The local campaign manager's expenses and fee, if any will be charged, must be included in the budget.
(b) The state campaign manager will review budgets from all local campaign areas and determine the projected combined expenses of the state campaign manager and each local campaign manager, including all fees.
(c) If the state campaign manager determines that the projected combined expenses of the state campaign manager and each local campaign manager, and the total of all fees exceeds 10% of the total amount collected in the state employee charitable campaign, the state campaign manager will identify the campaign managers that submitted budgets containing an expenses and fee amount that exceeds 10% of the contributions collected locally. If the SCM's proposed fee exceeded 10% of contributions to statewide federations, the SCM will also be identified in the list of affected campaign managers.
(d) The SCM will then calculate and determine an across-the-board percentage reduction of the fees charged by the affected campaign managers that would result in a total combined fee that is within the 10% cap.
(e) If the resulting total combined fee would be within the 10% cap, the SCM will inform each affected campaign manager that the proposed budget for that local campaign area must be re-submitted to the SCM with the across-the-board percentage reduction the SCM designated pursuant to the calculation under subsection (d), of this section; however, the requirements of this subsection are subject to the provisions of subsections (f) and (g) of this section.
(f) If the SCM determines that the affected managers would need to reduce their fee to a percentage level that is lower than the lowest percentage proposed by the other local campaign managers, the SCM will determine an across-the-board percentage reduction using the following method.
  (1) The SCM will calculate the total combined fee that would result from assigning to each of the affected managers the average percentage proposed by the other managers in their budgets.
  (2) If assigning the average percentage would result in a total combined fee that does not exceed the 10% cap, the SCM will notify the affected area managers of what the average percentage is and will require the affected area managers to re-submit their budgets with a fee that does not exceed the average percentage. The local area managers will re-submit their budgets in accordance with the SCM's instructions.
  (3) If assigning the average percentage to the affected areas would result in a total combined fee that exceeds the 10% cap, the SCM will determine an across-the-board percentage reduction, for all local areas and the SCM, that would result in a combined total fee of less than 10% of the total contributions collected in the SECC, and all local areas and the SCM shall submit an amended budget containing the across-the-board reduction.
(g) Neither the SPC nor the LEC will approve a budget that does not comply with these rules, and a fee will not be paid that will result in violation of the combined 10% cap.

Source Note: The provisions of this §326.5 adopted to be effective October 30, 2008, 33 TexReg 8807; amended to be effective December 4, 2014, 39 TexReg 9362