wfn.org | Committee recommends sending $400,000 to NCC despite unmet condition

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Note #6194 from PCUSA NEWS to PRESBYNEWS:

21-September-2000
00332

Committee recommends sending $400,000 to NCC despite unmet condition

NCC "doing everything it can" to get back on track

by Evan Silverstein

MONTREAT, N.C. -- When the General Assembly Council (GAC) of the
Presbyterian Church (U.S.A.) approved a $400,000 contribution in February to
help the National Council of Churches (NCC) eliminate its staggering 1999
deficit, the GAC attached five conditions which the venerable ecumenical
organization first had to satisfy before it could receive the money.

	Seven months later one prerequisite remains unmet.

	Despite that, the GAC will hear a proposal Saturday recommending that it
send the "recapitalization" money to the NCC anyway. The GAC's executive
committee unanimously approved a resolution on Wednesday asking the full GAC
to do just that since the unsatisfied stipulation -- involving outstanding
money from the United Methodist Church -- was not the NCC's fault.

	"I think that relative to the issues to be raised, the National Council has
done everything it can," said GAC executive director John Detterick, who
proposed the payment. "They can't control the fact that the Presbyterians,
the Methodists still haven't funded," he explained. "On that basis I think
we ought to go ahead, recognizing that the Methodists still say they're
going to do everything (they can) to fund."

	Transmittal of the GAC contribution would be accompanied by a notice
stating that "continued support at or near current levels by the council is
contingent upon the elimination of any deficits" for the NCC or its dominant
program, Church World Service and Witness (CWS), by the end of the NCC's
current fiscal year on June 30, 2001.

	The NCC finished 1999 with a budget shortfall of at least $4 million,
caused principally by fiscal mismanagement. That figure eventually grew to
$6.4 million by May. Another $100,000 of PC(USA) money -- from the Office of
the General Assembly (OGA) -- already has been paid.

	The PC(USA) bailout was made contingent based on other NCC member churches
meeting the rest of the $2 million needed to eliminate the deficit,
including a $700,000 commitment from the Methodists, most of which has yet
to be doled out to the financially strapped council of churches. The
PC(USA)'s money was also contingent upon the NCC approving a balanced budget
for the year 2000, and upon the NCC allocating enough money to rebuild its
reserves.

	"I'm not sure they're going to be on budget or not." Detterick said, "But
they do have a budget and they are working very hard towards it. Secondly,
the National Council, I believe, has done a tremendous job in making
significant strides in understanding their problem."

	The Rev. Phil Young, the NCC's treasurer and a Presbyterian, told the
executive committee that he is optimistic the Methodists will come through.

	If not, he said, the NCC will be in "severe jeopardy."

	"It will mean a much more drastic downsizing than we are currently
anticipating or currently experiencing," he said, adding that the NCC likely
would have to cut another 30 positions by the end of this year. "There are
heavy expectations that we will be making even more adjustments."

	The Methodists have paid at least $150,000 to the NCC, according to
Detterick, who said he was recently told by officials of the denomination
that it was to provide another $50,000 in August, then seek approval from
its mission board this month for an additional $100,000 and from its finance
board in November for the remaining $400,000.

	"I think it's appropriate, they (the NCC) have done everything they can, to
go ahead and to give them some relief they need from financial problems,"
Detterick said, adding that he was uncertain whether the NCC would be able
to "get out of the woods" even with the full $2 million. "It's not fair to
make them suffer while we wait for a partner" to come through with its
portion of funding.

	Other council requirements for the contribution included a process whereby
the GAC will work in partnership with the General Assembly Council on
Ecumenical Relations to conduct a comprehensive review every three years of
the PC(USA)'s involvement in the NCC, the World Council of Churches, the
World Alliance of Reformed Churches and the Consultation on Church Union.
The NCC was also required to approve guidelines to solve unfunded liability
of its pension and healthcare plans, and approve a plan to separate the
organization's financial management from CWS.

	In other developments, the GAC executive committee:

	* received a preliminary report calling for a review of compensation levels
for GAC and OGA staff, particularly middle and upper level managers.

	No action was taken.

	"After an initial review of current compensation levels of General Assembly
entities, of congregations within the denomination and of comparable
non-profit ... organizations, we conclude that there are significant issues
concerning fair and equitable compensation," said the report, compiled by
Peter Pizor, the GAC chair; Carole Rummell, the vice-chair; and William
Maloney, moderator of the Committee on the Office of the General Assembly
(COGA).

	Concerns raised included comparable pay for the scope of responsibility,
inequities within grade ranges and the appropriate relationship between GAC
and OGA salary ranges and comparable large congregations, other GA entities
and similar non-profit organizations.

	The need for "remedial action" is clear if these church entities hope to
continue attracting quality applicants, Detterick said.  "We're starting to
have troubles hiring even within the church structure," he noted. "Relative
to non-profits we are well below" on compensation.

	* hopes to name five individuals on Oct. 10 to serve as members of the
Independent 	Committee of Inquiry to investigate allegations of abuse of
children by Presbyterian missionary the late Rev. William Pruitt in the
Democratic Republic of Congo from 1945-1978.  Grace Presbytery ceased its
investigation into the charges against Pruitt last year after he died.

	* unanimously approved the recent hiring of two new employees by the
Presbyterian Church (U.S.A.) Foundation: James C. Futrell, vice president
information systems (CIO); and Gregory T. Rousos, chief financial officer.
Futrell received his bachelor's degree from the University of Kentucky and
has more than 16 years experience in the information systems field. Rousos
is a graduate of Ohio State University with a bachelor's degrees in
accounting and information systems. A certified public accountant, he has
more than 15 years experience in accounting, information systems and
corporate planning.

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