Assembly Council Trims National Budget

CRIEFF, ON – The Assembly Council of The Presbyterian Church in Canada has approved significant adjustments to the operating budget of the national church in an ongoing effort to maintain balanced finances. The measures include a closure of the national office building for one week, some reductions in national staff compensation and a re-organization of staff assignments resulting in a net reduction of up to five full-time positions. These actions, with some additional changes to transfers between existing funds, will bring permanent savings of $815,000 and temporary savings of $900,000 over the next three years.

In the document presented by management to the Assembly Council, the Reverend Stephen Kendall, Principal Clerk of the General Assembly, wrote that, "The approach we have taken has been informed by our denomination’s mission statement and by a reminder that Presbyterians are generous in their giving in many diverse ways, one of which is Presbyterians Sharing. While this generosity continues to be apparent, over recent years, small drops in Presbyterians Sharing revenue, coupled with necessary modest spending increases, primarily related to cost of living, have meant that the time has come to 'right-size' our budget."

The Council, the standing committee appointed by the annual General Assembly to manage the affairs of the church between Assemblies, approved the changes at its November meeting which concluded this morning. The Council considered the options and made the often difficult decisions over the course of the three day meeting at Crieff Hills Community near Guelph, Ontario.

The Reverend Bert Vancook, Convener of the Assembly Council, stated that members of the Council have been expecting this day for some time. He went on to say that prudent financial management up to this time has aided the church to bring the church forward into the present economic reality. While difficult decisions had to be addressed there was a strong feeling of collegiality and consensus that the right path has been embarked upon. "We discern a strong commitment towards the church and its mission and members from coast to coast are declaring their strong support for the national programs of the Presbyterian Church."

The new savings in the operating budget, a mix of temporary and permanent measures, will be found by making strategic changes to operational areas of the national offices. These adjustments reflect efforts to 'right-size' the national budget to match the giving of Presbyterians across Canada.

"There is a direct link between Presbyterians Sharing dollars and the national programs - including loans to congregations, grants for mission both home and abroad - that we can carry out,” noted Chief Financial Officer and Treasurer Steve Roche. “We must be fiscally prudent in these difficult times."

The specific measures approved this week by Assembly Council are summarized below:

National Staffing
The national staff complement funded by the operating budget will be reduced by between 3.5 to 5 full-time positions by 2011. The staff reductions will be achieved through anticipated retirements and reorganizing departmental work. The overall staff reductions will realize approximately $226,000 in permanent savings.

Cost of Living Allowance
The annual Cost of Living Allowance (COLA) that has traditionally been approved by the General Assembly will not be granted to National Staff at 50 Wynford Drive for 2010 and 2011. COLA increases will resume in 2012 as if they had not been frozen, but payments will not be retroactive.

The temporary COLA freeze will net savings of approximately $190,000.

National Office Closure
The national office will be closed for one week in both 2010 and 2011. During the office closure, each national office staff will be placed on one week unpaid leave of absence. The office closure will bring $110,000 in savings.

National Programs
A line by line analysis of the operating budget has yielded savings of approximately $160,000. The Life and Mission Agency program budget will be reduced by $110,000 while the General Assembly Office and Support Services will see reductions of $41,000 and $13,000 respectively. These savings, while significant, will not require the elimination of any particular program. Mission grants and ecumenical commitments remain intact.

Regional Staff
The funding of regional staff is shared between the synods, the Life and Mission Agency and the Women’s Missionary Society. The regional staffing model was already facing a funding reduction of $190,000 to begin in 2011. No further reductions were proposed during this budget review.

Grants to Colleges
The grants provided to the church’s three seminary colleges had been calculated at 10.13% of the total revenue two years prior to the grant. Assembly Council has made a modest adjustment of one quarter of one percent to 9.88%. Annual savings of approximately $25,000 will be realized through this measure.

Funds Transfers
Temporary and permanent savings will be found by making changes to the way that funds are directed from the bequests so generously left to the church. Currently, the first $25,000 of any individual undesignated bequest is transferred to the operating fund. For the years 2009-2011, an additional $200,000 will remain in the operating fund from such undesignated bequests.

In 2004, 2005 and 2006 three large undesignated bequests were received. These generous gestures enabled the Assembly Council to establish a stabilization fund that averages out the impact on the operating fund of these large bequests. Each year since that time a portion from this fund is transferred back into the operating fund. The transfer from the Bequest Stabilization Fund will be permanently increased from $240,000 to $440,000 starting in 2011.

Biennial General Assemblies
The Presbyterian Church in Canada is currently studying the feasibility of instituting biennial General Assemblies with a decision anticipated by the 136th General Assembly in 2010. If biennial assemblies are approved, the savings are expected to amount to approximately $125,000 annually starting in 2012.