Despite assurances, NCC sinks deeper in red ink
The Layman Online, November 27, 2001
Despite telling Presbyterians who helped bail it out of its previous budget deficits that it would live within its means, the National Council of Churches is sinking deeper into red ink.
The economic slide will require additional layoffs before the end of the year, reducing employment to 39 people – less than 40 percent of the 102 who were employed by the ecumenical agency two years ago.
Previous cuts in expenses enabled the council to narrowly avert bankruptcy last year. At the recent General Assembly in Oakland, Calif., leaders said the NCC had a $2.1-million deficit for the 2001 fiscal year that ended June 30. The 2002 budget has been reduced from $6.87 million to $5.7 million.
There could be more tough economic news ahead. Although there are 36 member denominations in the NCC, the Presbyterian Church (USA) and the United Methodist Church pay almost two-thirds of the dues. Despite numerous pleas from Robert Edgar, general secretary of the council, about half of the member communions pay no dues.
John Detterick, executive director of the PCUSA’s General Assembly Council, has already announced that budget cuts are imperative for the Presbyterian Center in Louisville because of shortfalls caused by theological conflicts within the denomination and variations on the stock market. And, since Sept. 11, many charitable organizations and ministries have experienced declining contributions because some contributors redirected gifts to help the victims of terrorism.
In 2000, the Methodists and Presbyterians anted up more than $1.25 million together in emergency contributions to help wipe out a previous deficit. At that time, both the Methodists and Presbyterians were assured that the 2001 budget would balance. In retrospect, the Presbyterian and Methodist gifts have merely allowed more deficit-spending by the NCC.
More than 1,000 Presbyterian congregations and individuals objected to the PCUSA’s bailout – many also objecting to continued membership in the faltering organization that is heavy on social and political issues but light on Biblical theology.
Presbyterian Phil Young, treasurer of the NCC, has been one of the strongest voices for financial credibility in the NCC – often speaking as if there is a doomsday clock ticking for the organization.
“There’s not much left to play around with,” said Young. “If we don’t balance this year’s budget, we’re facing a moment of very sober truth.” Even the deep cuts made so far may not be enough, Young added. “The denominations are in trouble also.”
Edgar, a United Methodist minister, five-term congressman from Pennsylvania and former president of Claremont School of Theology, continued to insist that the NCC would survive.
He said the first $120,000 in unrestricted giving above budgeted income this year will be held in reserve “to begin rebuilding the long-term financial health of the NCC.” He did not say where that first $120,000 would come from. In the past, Edgar has made similar rosy projections that did not pan out.
Some of the council’s recent problems may relate to Edgar’s style of ecumenical leadership. At one time, he courted evangelicals and the U.S. Conference of Catholic Bishops in an attempt to forge a new ecumenical body. He even co-signed, with the National Association of Evangelicals and the Catholic bishops, a public letter calling for support for traditional marriage.
But after being criticized by gay activists who want same-gender unions recognized by civil and church law, Edgar scratched his name from the letter – effectively ending serious talks about a three-way ecumenical alliance.