Budget cuts for NCC, Presbyterians

Christian Century, Dec 5, 2001

The National Council of Churches has slashed about $1 million from its annual budget, cutting positions mainly from its business staff and anticipating lower contributions from member churches during an economic downturn. Meeting on November 12-13 before its General Assembly in Oakland, California, the board dealt with the news that the NCC finished its last fiscal year that ended in June with a deficit of $2.1 million--higher than the $1.75 million deficit reported in October.

The board adopted a package that trims the 2002 budget from $6.87 million to $5.7 million, according to the Presbyterian News Service. General Secretary Robert Edgar said the first $120,000 in unrestricted giving above budgeted income this year will be held in reserve "to begin rebuilding the long-term financial health of the NCC."

The council's reserves were sufficient to cover its recent deficit--an improvement over last year, when "infusions" of cash from the United Methodist Church and the Presbyterian Church (U.S.A.) saved the NCC from bankruptcy, the news service said. "There's not much left to play around with," said Phil Young, a Presbyterian who serves as the NCC treasurer. "If we don't balance this year's budget, we're facing a moment of very sober truth."

The NCC staff numbers will be down to 39 people by New Year's Day. "This is a very realistic budget," said Wesley "Pat" Patillo, associate general secretary for communication, in view of budget reductions in member churches.

The Presbyterians see a potential shortfall that could reach at least $2.5 million next year, caused by a weakened national economy and theological-political conflict within the denomination. "Circumstances are pushing us to make decisions we wouldn't have made this early otherwise," said John Detterick, executive director of the General Assembly Council.

Detterick said that the budget would be trimmed and a "number of new initiatives" would be scaled back or postponed. A feasibility study now under way is considering a campaign to raise more than $39 million for missionary support and new-church starts.