The denomination has worked hard to cut spending in 2009, getting some relief as the financial markets began to rebound. So the immediate news isn’t terrible, but there’s a realization that tough decisions lie directly around the corner.
Here are some details.
Per capita. The Committee on the Office of the General Assembly and the Executive Committee of the General Assembly Mission Council passed a new per capita budget for 2011 and 2012 — a budget the General Assembly must also approve in July. That budget calls for increases of 20 cents per active member in each of the next two years, rising from $6.15 per member in 2010 to $6.35 in 2011 and $6.55 in 2012.
That would bring a per capita expenditure budget of $13.7 million in 2011 and of just over $14 million in 2012.
With some upticks in the market, and with careful spending – Stated Clerk Gradye Parsons praised the denomination’s staff – less money had to be taken from reserves than had been anticipated, he said.
Mission budget. The council is preparing to make adjustments in the PC(USA)’s mission budget for 2010 reflecting both dropping receipts and intentional efforts to keep expenses down, and in preparation for a major budget reduction for 2011 and 2012, details of which are expected to be announced at the council’s meeting in May.
In 2009, the actual revenues received came up about $9.2 million short – coming in at $77.4 million as opposed to the $86.6 million projected, according to Joey Bailey, the denomination’s chief financial officer.
But the denomination also held spending in check, using only $8.7 million in prior year reserves instead of more than $20 million that had been anticipated.
For 2010, the council is being asked to approve a revised mission budget – reduced by $7.3 million, from $101.million to $93.8 million. That reflects more than $4 million less than had been expected in current revenue, and also about $3 million less drawn from reserves.
Looking ahead to the 2011 and 2012 budgets, the projections are daunting.
It’s expected that $3.9 million will be drawn from restricted accumulated reserves in 2011 and $3.4 million in 2012 – down from $9.3 million in 2010, a considerable drop.
Unrestricted revenue is expected to drop from $23.3 million this year to $21.8 million in 2011 and $21.0 million in 2012. And projections for restricted revenue have it dropping from $58.7 million this year to $52.7 million in 2011 and $51.8 million in 2010.
Overall, that leaves the following picture:
* For this year, a mission budget of $93.8 million.
* For 2011, just $78.5 million – a drop of more than $15 million.
* And for 2012, a mission budget of $76.2 million.
Looking ahead to May – to the next round of budget cuts – “we have a major task in front of us,” Bailey said.
The COGA and GAMC are meeting here February 23-26.
