wfn.org | GAC Leaders Issue Pastoral Letter on Funding Decisions

[PCUSA NEWS <pcusa.news@ecunet.org>]

1-March-2000 
00104 
 
    GAC Leaders Issue Pastoral Letter on Funding Decisions 
 
(Editor's note: These are the complete texts of the resolution on emergency 
funding approved by the General Assembly Council Feb. 19 and the pastoral 
letter to the church which the Council asked four of its leaders to write 
explaining the funding decisions. - Jerry L. Van Marter) 
 
                              The Resolution 
 
Resolved that: 
 
    The General Assembly Council contribute $400,000 for recapitalization 
of the National Council of Churches.  This contribution along with the 
Committee on the Office of the General Assembly approved contribution of 
$100,000 would be a combined Presbyterian Church (U.S.A.) contribution of 
$500,000. 
 
    The $500,000 in combined Presbyterian Church (U.S.A.) contributed funds 
are subject to the following contingencies: 
 
1.  That other members pledge at least $1.5 million so the goal of $2.0 
million in contributions will be fully committed, and that the National 
Council of Churches achieve internal reallocation of funds to cover the 
remaining deficit; 
 
2.  That a balanced 2000 budget be approved, including necessary budget 
cuts to fully fund the 2000 operations, plus contributing to a realistic 
plan for rebuilding of reserves; 
 
3.  That a plan be approved to solve the unfunded liability of the pension 
and healthcare plans; and 
 
4.  That all members of the National Council of Churches be requested to 
participate in the recapitalization process, and that any excess funds 
contributed above and beyond the $2 million goal be set aside for operating 
reserves. 
 
5.  That the GAC receive for guidance the recommendations concerning the 
NCC, found in Attachment F, and the GAC request the General Assembly 
Committee on Ecumenical Relations to conduct in partnership with the GAC, a 
comprehensive review every 3 years of the Councils of churches and 
alliances of which the PCUSA is a member and on the basis of which to make 
recommendations to the General Assembly concerning the continuing 
participation of the PCUSA in those bodies.  The GAC further requests that 
the design for this review process be presented by the General Assembly 
Committee on Ecumenical Relations to the GAC no later than the February 
meeting of 2001. 
 
 
    The above contingencies must be met by the National Council of Churches 
Executive Committee prior to full funding participation from the 
Presbyterian Church (U.S.A.).  In addition, the General Assembly Council 
urges the National Council of Churches to do everything possible to 
complete the negotiations and move forward toward the financial and 
administrative autonomy of the Church World Service and Witness within the 
National Council of Churches. 
 
                               The Letter 
 
February 28, 2000 
 
Dear Sisters and Brothers in Christ's Family, 
 
    On behalf of the General Assembly Council we write in response to 
interest we have heard across the church concerning decisions made over the 
past six months to fund three unbudgeted expenditures: the development of 
our new denominational curriculum, the financial deficit incurred by the 
"Dawn" millennium youth event, and the recapitalization of the National 
Council of Churches. We want to share with you the circumstances and 
decision-making process surrounding each of these and what we have done to 
make sure similar situations are avoided in the future. 
 
                               Curriculum 
 
    Last September, the GAC approved $1.6 million to cover costs associated 
with the new curriculum: Covenant People, Bible Quest,  and The Present 
Word. This action became necessary because adequate monitoring systems were 
not in place to control development costs and original sales projects 
proved overly optimistic. 
 
    By the time of the September GAC meeting, most of the development costs 
had already been incurred. A decision to stop development at that point 
would have foreclosed the opportunity to recoup any of the costs through 
curriculum sales. The GAC believed that moving ahead was a financially 
responsible decision under the circumstances. Initial response to the new 
curriculum has been very positive. 
 
    Curriculum development, under any circumstances, is a costly 
enterprise. Denominational curriculum competes in a much larger market 
today than ever before. Many decisions must yet be made about our future 
curriculum, including how it will be funded and what management systems 
need to part of the development process. 
 
                               The Dawn 
 
    Low attendance was the primary factor contributing to the Dawn's 
estimated $1.7 million deficit. Our goal was to have 30,000 youth and young 
adults at this event in Indianapolis last December. We needed significantly 
fewer to break even. When Y2K fears reduced the actual attendance to only 
around 2,000, however, we found ourselves in a serious financial situation. 
When it became apparent last fall that attendance would likely fall short 
of our needs and expectations, several contracts for facilities were 
canceled in order to reduce our costs. It was too late, however, to cancel 
many other contracts with hotels, entertainers and the Indianapolis 
Convention Center. Late attempts were made to market "one-day admissions" 
throughout Indiana and neighboring states but with limited success. 
 
    The Dawn had a transforming impact on the spiritual lives of the people 
who attended. Those involved in its planning had an excellent track record 
of planning large scale youth events. The event would have been a financial 
success had our attendance goals been realized. We failed, however, to 
build into our planning process sufficient safeguards that would have 
allowed us to act in a more timely way to minimize our losses. GAC 
Executive Director John Detterick has already begun a complete review of 
the planning and decision-making process surrounding this event. His 
findings will be used as a case study in training that will be mandatory 
for GAC staff planning future large scale events. 
 
                  National Council of Churches of Christ 
 
    Inadequate administrative and financial management over a period of 
several years has led to the $4 million deficit currently faced by the 
National Council of Churches. At our most recent meeting this month, the 
GAC approved a one-time grant of $400,000 to help recapitalize the NCC. 
This grant will be added to a $100,000 grant approved late last year by the 
Committee on the Office of the General Assembly. Both grants were made with 
several contingencies including a requirement that the NCC take immediate 
steps to balance its budget and begin rebuilding its reserves. This has 
been done. Another requirement was that other NCC member denominations 
contribute comparable amounts to the recapitalization. 
 
    A key factor in the decision to approve this grant was the importance 
of the NCC's Church World Service and Witness (CWSW) activities to our own 
humanitarian and relief work. Much of the work that is done through 
Presbyterian Disaster Assistance is coordinated with other denominations 
through CWSW. The cost of replicating CWSW for the PC(USA) would have been 
greater than our share of the recapitalization costs. Another factor in our 
decision was evidence of new management and financial controls in place at 
the NCC and a commitment to further improvements from the NCC's new general 
secretary Bob Edgar, who attended the GAC meeting and answered questions 
from GAC members. 
 
    In approving this grant by a vote of 52-6, the GAC also mandated a 
review and assessment of our continued involvement in the NCC and other 
ecumenical groups every three years. We continue to believe that our 
participation in the NCC is a powerful way to affirm our place in the Body 
of Christ and to witness to the nation. Because of the widespread interest 
in this particular issue, we are enclosing a copy of the GAC action 
regarding the NCC. 
 
    The financial impact of these three situations was offset at the recent 
GAC meeting by the wonderful news that the denomination ended 1999 with 
more than $7 million in revenue over budget. Even though funding for 
curriculum, the Dawn, and the NCC will come from these end-of-year 
receipts, the majority of this money will still be earmarked for mission 
and evangelism. 
 
    It is our strong desire and fervent intent that these situations not be 
repeated. With better management procedures and clearer expectations now in 
place, we believe that we can move beyond a "bailout" mentality. As the GAC 
faced these situations, Jeffrey Bridgeman led us in a prayer in which he 
noted that these were not political actions but spiritual decisions. Our 
task is large and only with the leading of the Spirit can we ever hope to 
fulfill our great commission to take Christ into all the world. 
 
    Let us not become weary in doing good, for at the proper time we will 
reap a harvest if we do not give up. Therefore, as we have opportunity, let 
us do good to all people, especially those who belong to the family of 
believers."  (Galatians, 6:8-9) 
 
On behalf of the General Assembly Council and in Christ's service, 
 
Donetta C. Wickstrom,               Chair Peter J. Pizor, Chair-elect 
 
Carol Rummel, Vice Chair-elect      Jeffrey G. Bridgeman, Member 

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