Two of the major fiscal challenges to our Zion are the continuation of ineffective/underfunded programs which we are not committed to making sustainable AND the funding of entities/programs that can sustain themselves.  We will leave the former for another time.  The latter is the basis for most of the reductions in the Proposed Austerity Budget.

Most components, and a few programs, can sustain themselves.  In the 1950’s the General Conference granted the WMS President a stipend/salary equal to that of a general officer.  Let us not digress on all the reasons for this.  The long-term result, though, is that constituent bodies claimed a place in the budget.  In some instances, the allocation far exceeded the cost of basic administration. Clearly, our two major constituent bodies have the means to sustain themselves.  Five or ten dollars (USD) per year per member would fund the connectional bodies beyond what the General Budget now supplies.

Similarly, thirty new student tuitions would replace what the connectional church gives to colleges in the United States. Before the centralized budget, colleges were supported (and sometimes closed) based on the ability of conferences/districts to sustain them.  Reliance on the general budget has done little for the schools while burdening a budget which is now more difficult to support.  PLUS, the central funding has NOT reduced the appeals/efforts in annual conferences/districts.  Same folk are paying twice, usually without thinking about it.

Moreover, pricing periodicals to meet budgetary requirements would reveal just how important they are and needed format adjustments.  Voluntary patronage would determine what we want/need and what is proud fluff.  A free market would work wonders in the development of our programs. 

AMEs are kind and generous!  They will give, voluntarily, to SADA, Missions, schools, and periodicals if they trust the program and the administration.  Reliance on mandatory support through the general budget has made us ineffective and suspect. 

Look at the constituent bodies without a major infusion of general budget money!  WIM, Sons of Allen, RAYC, and MCAM make it with mere seed money.  People support and pay for what they want.  Forced contributions through a centralized budget may have had merit in 1956.  It is not a good fit for 2024.

The Summary:  Those entities which can support themselves through constituent contributions should be forced to do so.  Benevolent causes can prove themselves and attract significant support.  Decentralize so good folk can give willingly with love, not out of necessity.  God loves the cheerful giver! This is one of the dreaded outcomes of Zero Based Budgeting…and why the effort always stalls!

The Annuity Crisis is not the only existential threat facing African Methodism!  Declining membership; new, emerging paradigms of “church;” and different standards of commitment and accountability to both church and charity; all are omens of a need to reassess mission, values and operations.  Sadly, the Annuity Crisis may force us to do what we have avoided for decades:  face the fiscal skeleton.

Barring an extraordinary financial commitment by responsible parties in the Annuity Crisis, the $2m/year set aside is pathetic.  While we may claim to be unable to do better, there could be an Austerity Budget in our near future.

Here is a kind version.  While I do not agree with those who argue there is a lot of fat in the General Budget, there are areas where we will have to cut in an environment of austerity.  Before you are consumed by anger or fear, watch for the next blog posts where I propose how we deal with an austere budget.

In an Austere Budget:

1. Salaries and Expenses for bishops and general officers are frozen.
2. Global Development Funding Cut 100% (currently $280,182)
3. Lay Organization reduced to $60k (currently $194,962)
4. Women’s Missionary Society reduced to $60k (currently $314,065)
5. Colleges (Districts 1-13) no allocation. No change to seminaries (reduction of $1,841,196)
6. Extended Budget in Education (Districts 1-13) no allocation (reduction of $112,479)
7. Episcopal District Projects cut 100% (currently $130,537) 

Savings:  $2,873,421/year

GOING DEEPER

1. SADA reduce by 50% ( net reduction $280,667)
2. Global Witness – eliminate office, stipend distribution in Finance Office (net reduction $163, 682)
3. Reduce Bishops’ travel 25% (net reduction $110,365)
4. Reduce General Officer travel 25% (net reduction $33,075)

Additional Savings:  $587,789/year

Subtotal Savings:  $3,461,210

STILL NOT ENOUGH?

1. Reduce salaries by 25% net about $425k/year
2. Miscellaneous additional 25% reductions could net $113,790

Total Annual Savings:  $4 million

FOR THE DREAMERS

1. Allow one bishop to serve two smaller contiguous districts – Savings $200-300k per year
2. Assign Ecumenical Office to a bishop with a district – Savings $20k per year
3. Assign Chaplain Endorser to a bishop with a district – Savings $20k per year
4. Do a General Program Audit to determine if there is fat in the Budget.
5. Make investment income an Income Line Item to balance the Budget.

How do we deal with Austerity? What was the rationale for the cuts? What is our Future in Funding/Program? What was the criteria for these proposed cuts?  How much increase to the Budget can we survive, and how will it be allocated?

Stay tuned!