News from the Executive Presbyter/Stated Clerk

PRESBYTERY FINANCES TASK FORCE

At its meeting in mid-February, Presbytery Council voted to create a Presbytery Finances Task Force that is looking into various issues on both the income and expenses side of presbytery’s budget, informed by information developed by the Transition Team in the mission study they completed.  Most everything is on the table, from program reductions to our office lease to staff costs.  The latter is over half of our local expenses (less per capita and mission contributions to the Synod and General Assembly).  This Task Force has been asked to make a report to the April 11 meeting of Presbytery Council, where Council will begin to chart the way forward.  The packet of reports for the upcoming meeting has the complete action approved by Council listed, including the specific responsibilities given to the Task Force.
 
We adopted a budget for 2023 that has a fairly sizeable deficit – in part because of declining per capita because of a loss of over 3,000 active members over the past three years (around $27,000 in decreased per capita), and also due to a general decline in mission giving (over $75,000 per year since before the pandemic.)
 
Our investment portfolio took a 16.55% loss in 2022.  The performance of the fund looks like a ski jump.  It started the year up high, went steadily downhill each month until bottoming out in September.  Since then, it increased over 10% in the fourth quarter.  For the entire three years of the pandemic, we are still in the black in terms of investment earnings (less than 5%).  The good news is, we can cover the deficit with unrestricted investment funds if we choose to.  But as most (if not all) our sessions know, this is not sustainable.  Plus, in this time of transition, it will not be fair to whoever God calls here to be the next presbytery leader to leave this issue unresolved and drop it in that person’s lap.
 
 
The members of this Task Force are David Lindemer (Chairperson), Cris Heceta, Tim Womack, Guy Neff, Debra Cox, and Randy Simpson, with Nancy Cox as staff support.  Please pray for them in this important work (and the Transition Team, as well), and for Council as they receive and act on the recommendations developed.  This matter will be noted at the March 4 stated meeting at Church of the Lakes in Orlando, when you may ask questions if desired.
 
In recent months, I have had many conversations with representatives of our CFP congregations, with one subject often arising: the difficulty in making ends meet in regards to 2023 congregational budgets.
 
For some time now, I have been saying that our sessions/congregations are facing three basic questions as we continue to come out of the pandemic, three years on now.  First, are people going to come back to worship and other activities, or have some drifted away?  Second, what is the final financial impact of the pandemic going to be?  Sessions are dealing with this at a time when utilities, insurance costs, and basic supplies are all impacted by inflation, investments performed terribly throughout most of 2022, and Benefits Plan dues increased.  The third question is, what is the health of our pool of leaders: about the same, increasing, or decreasing?
 
A few congregations have decided to budget for six months to see how circumstances are mid-year, and then address the second half.  Many sessions are facing the unfortunate task of having to cut programs, mission support, and/or staff.
 
When I was serving as a pastor, I used to tell the session that the church budget was essentially about four areas of expenses: employees and related expenses, building-related expenses, programs, and missions.  If reductions need to be made, it is hard to cut building expenses, as items like utilities and insurance must be paid.  Program expenses tend to be the smallest segment of the budget.  There is not much “bang for the buck” to be had in making reductions in expenditures here, and these expenses often touch most members in their relationship with the congregation.
 
That leaves the employees of the congregation and expenses related to their work as the most likely area to make significant reductions, something we generally do not like to do.  If staff are being let go, sessions should be mindful that the Book of Order calls for fair employment practices, and reductions in staff due to retrenchment of programs should be done with a separation agreement in place.  CFP has severance guidelines, which usually call for two weeks to one month’s severance compensation for each year in the position.  (Please note the word “guidelines.”  Presbytery can recommend what a severance package should look like, but we cannot require it (except for pastoral calls, as these are approved cooperatively between the congregation, session, and presbytery).
 
 
Dan Williams
Executive Presbyter / Stated Clerk

MARCH 2023

Rev. Dr. Dan Williams