Typically, many congregations and presbyteries wait until late in year to pass on money to the denomination — about 40 percent of the funds are reported in the last quarter of the year, Bailey said — which means denomination’s financial gurus won’t have a clear sense until early in 2003 of what the receipts for the year will actually be.
And a key component in shaping the denomination’s next budget, for 2004, will be the spending formula that determines what portion of the Presbyterian Foundation’s endowment funds are available for use by the PC(USA).
The foundation and the denomination are in the process of negotiating a new spending formula, with the help of an independent consultant, Mercer Investment Consulting. While the Foundation and the General Assembly Council staff may not see eye to eye on everything, “we are in communication with these folks like never before,” Bailey said.
The 2004 budget probably won’t be presented to the council until next spring. Last April, the council cut $4.2 million from the 2003 budget, eliminating 66 jobs. Bailey declined to predict what might happen in the 2004 budget. Asked if more jobs might be cut, Bailey replied: “It’s certainly a possibility.”
