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BY MELISSA LAUBER
UMCONNECTION STAFF

A series of unexpected occurrences has left conference leaders in a state of fiscal discernment as they put together a sound and responsible financial strategy to lead the conference into the future.

On Feb. 8, Treasurer Paul Eichelberger told conference Connectional Table members that the creation of the 2013 budget would be delayed a few weeks as committee members examined the realities of a new bottom line, which currently has an almost $1 million shortfall.

Within the past few weeks, Eichelberger said, "two of our critical long-term factors in setting the budget have been challenged."

The first was a report that the 2011 apportionment base declined by 5.6 percent against the 2010 rate. In 2012, the local churches had $92.5 million in administration and ministry funds that could be apportioned. However, in the assessment for 2013, the apportionment base dropped to $87.3 million.

This is due in part to a challenging economy, decline in our congregations, and a new mission deduction for congregations that allowed churches to deduct mission expenses for building usage for community mission.

The second factor that confronted CFA was that the General Church apportionments for 2013 will increase by $50,000.

The General Church is proposing a 6 percent reduction in the denomination's 2013-2016 budget, while the conference CFA members used a conservative figure of a 2 percent reduction in General Church apportionments. However, because of its growth in discipleship, the Baltimore-Washington Conference was one of only three conferences in the U.S. (there are 59 conferences in the U.S.) to receive a significant increase in apportionments. (The others were the Texas and Southwest Annual Conferences.)

The BWC is being asked to pay $3,616,634 in General Church apportionments in 2013 or 25 percent of our total apportionment budget.

Our General Church apportionment budget has grown in the percentage of our conference apportionment budget by 4.2 percent since 2005.

Prayerfully, the General Conference will address the increasing percentage of conference budgets going to the General Church, said the Rev. David Argo, the conference director of Connectional Ministries.

At this time in our church's life there need to be more funds at the local church and conference level to make disciples, grow vital congregations and meet local missional challenges, Argo said.

The 2013 budget will also be $300,000 less than the 2002 budget. This is due in part to the reduction of the benevolence factor by 27 percent for local churches.

These factors, Eichelberger reported, created a $1 million gap in the proposed 2013 budget.

CFA's commitment to have as many financial resources for mission and ministry in local congregations as possible is reflected in its desire to keep the benevolence factor at 18 percent. CFA is considering closing the gap by increasing the collection rate by .5 percent to 91.5 percent; and reducing the 2012 expenses.

However, this still leaves a $122,000 shortfall, and allows for no further crises or reductions in apportionment giving, Eichelberger said.

Between now and the beginning of April, CFA will be developing a 2013 budget for consideration by annual conference at its May meeting.

CFA is also firmly committed to continuing to reduce the benevolence factor in the next few years to 16 percent, which would roughly equate to a tithe for local churches, Eichelberger said.

To be responsible stewards, "we need to look at financial models and how we'll budget over the next five to 15 years," Eichelberger said. "This will take financial discipline, clarity and focus. But we believe we can turn this around with all of us working together."