wfn.org | Newsline: Church of the Brethren board revises budget, announces immediate reorganization

[cobnews <cobnews@brethren.org>]

Newsline: Church of the Brethren News Service -- March 20, 2009
Cheryl Brumbaugh-Cayford, News Director
800-323-8039 ext. 260 -- cobnews@brethren.org

CHURCH OF THE BRETHREN BOARD REVISES BUDGET FOR 2009, ANNOUNCES IMMEDIATE R EORGANIZATION

(March 20, 2009) Elgin, IL -- Financial concerns topped the agenda at the M arch 14-16 meeting of the Church of the Brethren denomination's Mission and  Ministry Board. The board met at the Brethren Service Center in New Windso r, Md., using Romans 12:2 as a scripture theme. The board is chaired by Edd ie Edmonds, pastor of Moler Avenue Church of the Brethren in Martinsburg, W .Va.

In its major item of business, the board adopted a staff recommendation to  revise the budget parameter for Church of the Brethren core ministries in 2 009.

The board revised this year's expectations for income to core ministries do wnward by close to $1 million. The revision was made in light of a loss of  about $7 million in net assets in 2008, caused by the market downturn, as w ell as a 10 percent decrease in total giving to the denomination compared t o 2007.

The new budget parameter represents an expected $5,174,000 in income, reduc ed from $6,036,000. Total expenses for core ministries in the revised budge t come to $5,671,000.

With these revisions, the board approved a reduction of $505,000 in the ope rating budget for core ministries, use of $497,000 in net assets, and use o f $166,000 in designated funds to cover the deficit that is expected this y ear. The decision affects the core ministries of the denomination, but not  the church's self-funded ministries.

A detailed plan for making the 2009 budget reduction of $505,000 was presen ted in sessions that included only board and executive staff.

Treasurer Judy Keyser told the board that finance staff anticipates the nee d for an additional budget reduction of close to $300,000 in 2010, and that  there is an assumption of no salary and wage increases next year as well.

The board spent time reviewing the cash flow situation of the church, and h ow long day-to-day operations can be maintained without having to dip into  investments or endowments. LeAnn Wine, executive director of Systems and Se rvices, presented analysis indicating the church holds unrestricted cash as sets sufficient to cover average monthly cash flow for several years.

"We have sufficient cash reserves. Our net assets are still strong," Keyser  told the Executive Committee. The Church of the Brethren currently has a n et asset value of around $23 million, down from the net asset value of some  $30 million at the close of 2007.

Keyser emphasized as another piece of "better news" that the Church of the  Brethren does not have outside debt obligations. The year 2008 "could have  been worse," she said. "There were net assets available. Secondly, designat ed funds were available. Thirdly, there was a policy change that buffered a gainst substantial losses," she added, referring to a policy on how the chu rch records market fluctuations.

In comments outside of the meetings, general secretary Stan Noffsinger said  that the comprehensive plan to make the budget reduction of $505,000 for 2 009 will be carried out and announced over the next several weeks. The plan  will eliminate a number of employee positions, and also make substantial c hanges in how certain departments will do their work, he said.

The financial situation "has forced the church to re-envision its ministrie s," explained Noffsinger, emphasizing that leadership is attempting to use  this difficult period to position the denomination to emerge from the econo mic downturn in good shape and with ministries appropriate to the current c limate.

The board also reorganized to comply with the decision of the Church of the  Brethren Annual Conference when the board was created during the merger of  the Association of Brethren Caregivers with the General Board last year: 1 5 members plus a chair and chair-elect. Before the economic downturn, the b oard planned to gradually reduce its number of members by attrition. The im mediacy of the decision is intended to help reduce expenses.

Other business addressed by the board included a Domestic Hunger Matching G rants program, revised by-laws for the denomination, an update of the denom ination's Ministerial Leadership Paper, a proposal for a new Children's Min istry, a master plan for the Brethren Service Center and the General Office s, a denomination-wide fundraising campaign, and reports from the work of C hildren's Disaster Services and work in Haiti by Brethren Disaster Ministri es and the Brethren mission there, among others.

Comments throughout the meetings returned to the fact that the difficulties  facing the Church of the Brethren--in terms of finances and the accompanyi ng necessity for reductions in staffing and program changes--have been forc ed by outside events.

"We don't always find the olive branch," said board chair Eddie Edmonds dur ing his opening comments to the Executive Committee. He likened the board t o Noah's dove sent out to find the green branch as a signal that flood wate rs were receding, but without avail at first. However, the dove each time w as able to return to loving shelter in the ark, he said.

Edmonds called on the group to remember the presence of God and the love of  the church, even when business is heavy and decisions are not clear. "We d on't always find the prize," he said. But he added, "We will continue to al ways welcome each other in the church."

The meetings closed with prayer, led by board member Chris Whitacre. The bo ard prayed for those affected by the results of decisions made at the meeti ng, and for decision-makers to feel confident. "God... you have been with u s in the deliberations of this process," Whitacre prayed, "every step of th e way."

The Church of the Brethren is a Christian denomination committed to continu ing the work of Jesus peacefully and simply, and to living out its faith in  community. The denomination is based in the Anabaptist and Pietist faith t raditions and is one of the three Historic Peace Churches. It celebrated it s 300th anniversary in 2008. It counts more than 125,000 members across the  United States and Puerto Rico, and has missions and sister churches in Nig eria, Brazil, the Dominican Republic, Haiti, and India.

># # #

>For more information contact:

>Cheryl Brumbaugh-Cayford
>Director of News Services
>Church of the Brethren
>1451 Dundee Ave., Elgin, IL 60120
>800-323-8039 ext. 260
>cobnews@brethren.org