2003 Mission budget balanced after $4.2 million made in cuts
By Paula R. Kincaid, The Layman Online, April 30, 2002
LOUISVILLE – The executive committee of the General Assembly Council voted to balance the 2003 mission budget by making more than $4.2 million in cuts in unrestricted funds, a number that includes the elimination of 66 jobs in Louisville and 34 international mission workers.
“Involuntary separation” made up 47 percent or $2.0 million of the cuts, and program/cost reductions made up 53 percent, or $2.2 million. Another $1.4 million in cuts were made in restricted funds. Of the 66 jobs, 21 are currently vacant.
Marian McClure, director of the Worldwide Ministries Division, said the 10 percent decline in long-term mission personnel was due to attrition – missionaries retiring or leaving the mission field due to family or educational reasons. She said the hope is to build the number of mission workers back to current levels.
The total budget, approved by a 10-1 vote, was $132,123,844. Adelia Kelso, vice chair of the council, cast the dissenting vote. Kelso told the council, “I think the staff leadership team and all those who did all of the work in the last several months are wiser than I, but I think the market will bounce back and I had to vote for hope.”
Budget process
John Detterick, executive director of the General Assembly Council, said the budget process was driven by three challenges the council approved at its January meeting – $1 million to begin a $40-million fundraising campaign; $500,000 in additional mission dollars for the new curriculum, We Believe; and a 4-percent pool for staff pay raises in 2003. The pool was decreased to 3 percent during the budget process.
These items, plus the previously proposed 2003 budget, showed a deficit of $5.33 million.
In addition to the $4.2 million in cuts to staff and programs, $610,000 was taken from capital reserves and $720,000 from the Presbyterian Mission Program Fund to balance the budget. The mission fund is a cash flow reserve that must remain in excess of 30 percent of the annual expense budget.
Of the cuts, 15 percent were made in strategic reductions; 41 percent in reductions in work; 18 percent in reorganization of work; and 26 percent in other administrative efficiencies.
Following the presentation by staff, committee member Herb Christ asked, “What is being sacrificed, or is this what we should have been doing if money was there or not?”
“We were forced to do the analysis we did,” answered Detterick. “We dealt with issues we probably should have dealt with before, but there are huge sacrifices.” He said the 10 percent reduction in mission personnel is a huge sacrifice, “in each case there are real losses of services to the church that have been recommended.”
Congregational Ministries Division
Don Campbell, director of the division, gave a brief overview of the cuts – a total of $584,000 including 8 employee positions – in the Congregational Ministries Division’s 2003 budget.
An additional $183,000 also had be to cut from the division’s budget to balance the budget for the denomination’s new curriculum We Belong, which is now under production.
Cuts included the discontinuation of the Peacemaking Advisory Committee. When asked, Campbell said the Peacemaking Program office remains, only the advisory committee is gone. “A strong presbytery and synod network can provide this input,” he said.
National Ministries Division
The overview for National Ministries was given by its director, Curtis Kearns, who said 14 of the 34 program areas were impacted by the cuts – a total of $1,253,708 including 13 jobs lost.
Position-related reductions totaled $1 million, grants and aid $90,000; savings from policy changes $50,000; and more than $99,700 in other areas.
Kearns was questioned about one reduction: $235,000 in adjustments to staffing for Presbyterian Women. “We have a covenant with Presbyterian Women to provide some staff,” he said. “We will be in conversation with Presbyterian Women about staff recommendations,” which they will vote on at the annual meeting held in conjunction with the 2003 Presbyterian Women Gathering.
Worldwide Ministries Division
Worldwide Ministries Division reduced its budget by $1,269,973, a number that includes 16 jobs besides the reduction in missionaires. McClure said the budget reduction process began by developing seven core functions for the division. The goal was met by reducing Louisville-based staff, consolidating administrative support functions, reducing grants to 165 partner churches in 80 countries; eliminating activities and creating program savings; and the attrition of 34 mission personnel – a 10 percent decline in long-term mission personnel.
McClure said letters had been sent to all partner churches weeks ago, warning them of possible reductions. She said now all partnership funds will be pooled and given on based on certain criteria and need.
The budget reductions made by the division will allow it to create four new positions at a cost of $169,700.
Mission Support Services
Mission Support Services reduced its budget by $763,612, which includes 13 employee positions. The budget process gave the division an opportunity to restructure, said Joey Bailey, deputy for MSS.
Reductions will include automating more of the workload; eliminating Sunday hours at the Presbyterian Center after the upcoming General Assembly; reducing mail delivery to once a day; eliminating contract plant and landscape maintenance; and a loading dock security guard.
Executive Director’s Office
The executive director’s office reduced its budget by $628,369, with six positions eliminated.
The bulletin insert, Glimpses, will be eliminated, with Presbyterians Today being emphasized as the primary print publication. In other communication reductions, PresbyNet will be transitioned to Web-based technology, and the Presbyterian Panel for 2003 will be funded by reserves while Research Services looks for foundation support for the Panel.
What next?
Detterick said the Strategic Visioning process that the council is now participating in is crucial. “Part of our struggle is our lack of crystal clear objectives for the General Assembly Council. We do need a Strategic Visioning Process to affirm what we do or to affirm what we need to redirect,” he said.
“We need to do a better job talking about shared mission giving,” he continued. “This is the core of what we do.”
The 2003 Mission Budget, which is made up of voluntary contributions (76 percent designated), is $130 million. The budget includes income from the Presbyterian Foundation, special offerings and other contributions.