wfn.org | [PCUSANEWS] Leaders will face budget cuts head-on

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Note #8139 from PCUSA NEWS to PRESBYNEWS:

Leaders will face budget cuts head-on
04103
February 24, 2004

Leaders will face budget cuts head-on

$3.1 million in trims for 2005-2006 will be made this spring

by Jerry L. Van Marter

LOUISVILLE - PC(USA) staff leaders have decided that they will make all of
the $3.1 million in cuts needed to balance the 2005 and 2006 General Assembly
unrestricted mission budgets this spring.

Financial officials estimate that the total gap between income and expenses
for the unrestricted portion of the budget will be $4.5 million. Based on
previous experience, General Assembly Council entities can be expected to
underspend their budgets by a total of $1.4 million, leaving the $3.1 million
gap.

John Detterick, the executive director of the GAC, attributed the need for
budget-cutting to several factors:

* Downward trends in unrestricted giving by congregations;
* Reduced income from investments as the U.S. economy continues to recover;
* The GAC's recent adoption of its Mission Work Plan, which calls for several
new programs and a reallocation of resources to match the plan's priorities.

On Feb. 19, Detterick established budget-cutting targets in the unrestricted
budget for each of the major GAC entities:

Congregational Ministries Division - $590,000
National Ministries Division - $1,030,000
Worldwide Ministries Division - $520,000
Support services - $960,000

"These cuts will be significant, and some staff positions will be
eliminated,"
Detterick said, adding that they are "likely (to) eliminate entire areas of
the GAC's work."
Deputy Executive Director Kathy Lueckert told the Presbyterian News Service
that "the budget-reduction targets are a starting point for aligning the
overall budget with the Mission Work Plan."

Leuckert said the recommended 2005-2006 budget will reflect the priorities
approved as part of the Mission Work Plan: 30 percent of the unrestricted
part of the budget for Evangelism and Witness, 29 percent for Leadership and
Vocation, 19 percent for Spirituality and Discipleship, 17 percent for
Justice and Compassion and 5 percent for exploration of the GAC's role and
identity.

Initial proposals from the ministry divisions to meet the targets are due on
March 23. The budgets will be developed between then and May 7-8, when the
GAC's executive committee will meet to approve 2005 and 2006 budgets to be
presented to the upcoming 216th General Assembly in Richmond, VA.

"Personnel actions" are to be announced on May 10.

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