wfn.org | Mission agency reduces staff in budget-cutting move

[NewsDesk <NewsDesk@UMCOM.ORG>]

July 12, 2002    News media contact: Linda Bloom7(212) 870-38037New York
10-21-71B{300}

NOTE: Stephen Feerrar's name is spelled correctly.

NEW YORK (UMNS) -- Another round of budget-cutting measures, including a
reduction of staff, was announced July 12 by the United Methodist Board of
Global Ministries.

About 10 people, including both executive and support staff, were affected
by the reductions-in-force, the Rev. Randolph Nugent, the board's chief
executive, told United Methodist News Service.

Last October, the mission agency reduced its staff by about 20 percent and
also cut spending for office operations, materials and services, program
expenses and staff travel in hopes of saving $6 million. At the time, the
board had more than 300 employees.

Besides the reductions-in-force, the board is redeploying other staff and
changing its approach to programming, as well as continuing to cut
management expenses such as supplies and travel, in order to ensure a
reduced budget for 2003. That budget requirement was mandated by Board of
Global Ministries directors at their April meeting.

Instead of merely making grants for various projects, the mission agency
will look to its partners to assist with leadership training and program
development. "We're focusing our work in our already-established
institutions and missionary conferences," Nugent said.

A July 12 statement issued by the Board of Global Ministries noted, "While
grants will still be available for a specific and limited number of partner
relationships where grants are the essential means of expressing the
church's ministry, the board will focus on program development in the
future. To this end, staff will work with United Methodist conferences,
other Methodist churches, ecumenical partners and community partners to
provide expertise, training, connections, technical advice and resource
development assistance."

Although church contributions are holding steady, the new budget constraints
were necessary because of the decreased return on investments and the
reduction in the board's reserves, according to Stephen Feerrar, treasurer.

Feerrar's report to directors at the board's April meeting outlined how the
agency's authorization of $60 million in new mission programs in the late
1990s, financed by unrealized capital gains, would later prove to be a
fiscal problem. Factors ranging from a reduced allocation of denominational
revenues to the stock market decline to the economic impact of Sept. 11
contributed to the budget shortfall.
# # #

*************************************
United Methodist News Service
Photos and stories also available at:
http://umns.umc.org