wfn.org | GAC leaders outline '03 budget squeeze

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Note #7034 from PCUSA NEWS to PRESBYNEWS:

29-January-2002
02045

GAC leaders outline '03 budget squeeze

Executive committee endorses Detterick for a second four-year term

by Evan Silverstein

LOUISVILLE - The executive committee of the General Assembly Council (GAC) met on Tuesday to discuss financial issues ranging from potential budget shortages to a fund-raising campaign for mission meant to raise $40 million over the next five years.

The deliberations took place as GAC members gathered for several days of meetings at the Presbyterian Center and the Seelbach Hotel here.

Budget challenges

A weakened national economy and conflicts within the denomination have combined to create a potential revenue shortfall that officials in Louisville say could exceed $2.5 million in 2002 and more than $5.5 million in 2003. 

"It's always a work in progress," Kathy Lueckert, the GAC's deputy executive director, said of the budget. "Every year we're doing some adjustments to keep ourselves where we need to be." 

GAC Executive Director John Detterick outlined a handful of challenges involved in planning next year's budget.

They included:

* A projection that "continuation" expenditures in the 2003 budget will exceed projected unrestricted income by $2.4 million.

* Required adjustments of $770,000 that will increase the 2003 deficit to $3.17 million.

* New expenditures proposed for 2003, including $1 million for the proposed Mission Initiative, $500,000 for the new "We Believe" curriculum and $900,000 in employee compensation adjustments - a total of $2.4 million. 

* A projected difference of $5.57 million between unrestricted income and expenditures for 2003.

Options for reducing the deficit include drawing on the Presbyterian Mission Program Fund (PMPF) and reducing strategic expenditures and board-designated funds.

A detailed budget will be developed in the next three months. The GAC executive committee is expected to vote on the proposed 2003 budget in April.

Mission Initiative

The proposed initiative is a funds-development campaign to support international missions and to stimulate church growth, particularly racial-ethnic growth. The campaign will target major donors (individuals and congregations) known to be interested in mission and church development. If approved by GAC, Phase 1 of the Mission Initiative Campaign would set out to raise $40 million over the next five years. 

"It's clear to me that we have to find new ways to fund mission," Detterick told the GAC. "The old models for funding mission have worked so well for us ... but now we need to learn new ways."

For more than two years, church personnel have been working to identify specific needs in the areas of international mission personnel and church growth. The price tag of needs identified so far exceeds $200 million. 

During Tuesday's meeting, the executive committee unanimously voted to go ahead with Phase 1 and to include $600,000 in the 2002 budget and $1 million each in the 2003, 2004 and 2005 budgets to support the campaign.

The GAC executive committee also:

* Voted unanimously to recommend a second four-year term for Detterick. The full Council must still elect Detterick and his election must be confirmed this summer's 214th General Assembly in Columbus, OH.

* Discussed a proposed 3-year "strategic visioning process" on the programs of the GAC and its role in meeting the needs of the denomination and supporting its mission work.
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