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By Maidstone Mulenga
UMConnection Staff

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In a unanimous vote, the clergy and lay members of the Baltimore-Washington Conference approved the proposed $16.8 million budget for 2014.

Without a single question or debate, the members attending the 229th Session of the Annual Conference adopted the budget as it was presented by Charlie Moore, the president of the Council on Finance and Administration.

The members also approved a recommendation to designate
33 percent of the General Church apportionents to World Service and
67 percent to benevolences.

The approved budget represents a 1.6 percent decrease in spending from 2013 and a 7 percent decrease from the 2012 budget.

The benevolence factor for local churches remains steady at 17.75 percent. In its planning, CFA is counting on the collection rate for apportionments rising from 91.5 percent in 2013 to 92.5 percent in 2014.

The 2014 budget provides funding for a new young adult/campus ministry director position to resource local churches. It also reduces the number of Guides from 2 per region to 1.5 per region. 

The budget increases mission funding by 3 percent, adds $60,000 for congregational development, increases deaf ministry funding to allow for two full-time pastors and adds $213,000 to the Strategic Growth Initiative, which provides associate pastors to ethnic minority churches with high growth potential. The program provides diminishing funds over a five-year period as congregations incorporate fundamental changes to their ministry that make them more capable of large church ministry.

The 2014 budget reduces funds spent on conference insurance, legal expenses, information technology systems and moving expenses.

The 2014 budget also increases the budget for Deaf Ministries by almost $24,000 to enable the conference to maintain two full-time positions.

In his report, Moore clarified the relationship between Be the Change Washington and the conference. Moore, who led a six-member Be the Change Relationship Task Force,  told the Annual Conference members that there was  no formal relationship between the conference and Be the Change.

Moore also reported that the task force rejected a time-sensitive proposal by Be the Change that the conference serve as the guarantor of funding on a $25 million project to build 111 units of supportive housing on North Capitol Street in Washington. 

“After extensive study and deliberation of this issue, with the help of industry experts, the task force felt that the guarantees would expose the conference to too much risk,” he said.

The overwhelming approval of the budget was credited to information shared during district meetings and the preconference briefing.

Equitable compensation

The Commission on Equitable Compensation Commission’s recommendation that the minimum salary for clergy in the Baltimore-Washington Conference be increased by 2 percent to $39,728 in 2014 was approved.  The housing allowance was kept at $19,534.

In presenting the recommendation, Jim Johnson, chair of the commission, told the 229th Session that a number of key factors had been taken into account for the recommendation.

He noted that the General Council on Finance and Administration’s summary of equitable compensation plans in the annual conferences of The United Methodist Church for 2012 offers opportunity to compare what other conferences are doing to remain equitable in their settings.  “The Baltimore-Washington Conference remains competitive,” he said.  

In keeping the allowance at the current rate, Johnson said the housing statistics showed a slight decrease in the affordability index; however, the mortgage rates remain at an all-time low of 3.34 percent. “We feel there is strong support for keeping the housing allowance steady,” he said.

Health care and pension

The Baltimore Washington Conference does not plan to introduce the marketplaces mandated by the Patient Protection and Affordable Care Act (also known as ObamaCare) into the conference healthcare coverage for some or all of the active clergy.

“Since HealthFlex is for our  three-quarter and full-time churches, our clergy will not be eligible for going to the marketplace for health insurance in 2014,” the Rev. Jackson Day, chair of the Board of Pensions and Health Benefits, announced at the 2013 Annual Conference Session on Thursday.

He also reported that the Conference Board of Pensions was moving toward consumer-driven health plans which place increased financial responsibility on the health consumer. “CBOP has a taskforce that is studying the options and will prepare a recommendation.”  

Clergy and lay members of the conference later approved the following recommendations from CBOP: 

• Post-age 65 retiree health benefits will continue to be provided via Extend Health. 
• Pre-age 65 retiree health benefits continue to be provided by HealthFlex until the 65th birthday. 
• Clergy Retirement Security Program (CRSP) defined benefit is set at 12 percent plan compensation.
• CRSP defined contribution is set at 2 percent with 1 percent match.
• CRSP will be offered to 50 percent and 75 percent part-time clergy.
• The Comprehensive Protection Plan (CPP)  is set at 3 percent plan compensation.
• CRSP and CPP will be direct billed to local churches.