First, I want to qualify my statements by giving a background on myself. I am a varsity official and a program director at our local YMCA. I have officiated HS basketball for about 6 years and have had my job for over 5.
As a youth league director and official, I feel that the number one "customer service" I can give to my kids and their parents is quality officials. I have used coaches and, as a whole, they just don't have the experience or training to hit that quality level that I feel I need for the program. Hand in hand with quality officials goes higher costs. If you pay them, they will come! Officials are by far, the #1 expense in youth leagues. Some places help offset expenses by doing fundraisers, some charge admission, and some just charge $50-$60 registration fees. The amount depends on the # of games in the league. Awards and utilities are the other big cost items.
I know of very few leagues that use volunteers. Those that I'm aware of that do, are always struggling with the issue but they can't get over the fear of losing the program due to budget constraints. I just think that a happy customer will pay the price or support us if they know their children are safe and that they are learning the correct skills early.
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