PROPOSED 2023 BUDGET ADJUSTMENT
Presented to the August 2022 Called Session of
The South Georgia Annual Conference
The Council on Finance and Administration appreciates the support of the Conference in adopting a 2023 budget of $7,936,868 at our June session. This was a reduction of $500,350, or 5.93%, from the 2022 budget. That budget anticipated the disaffiliation of eighteen churches at the June Annual Conference and, in fact, reduced the budget by more than the anticipated loss of apportionment income.
With approximately sixty churches requesting to disaffiliate at the August called session, CFA has met to consider the loss of apportionment income this will cause. While churches who are disaffiliating do pay the next twelve month’s apportionments, that is not the same as the next calendar year. Churches departing at the August session will pay the next twelve month’s askings, or from Sept. 1, 2022 to Aug. 31, 2023. This means four months of 2023 will be uncovered.
CFA anticipates the impact on that part of the budget which can have deficits (The “Type A” items) to be $222,648 in 2023. “Type B” items, where we simply “pass through” monies received to the appropriate cause, cannot cause deficits. CFA does not believe it is appropriate for those churches remaining to have to pick up this shortfall. Therefore, CFA is proposing three adjustments to the 2023 budget approved in June.
First, we propose the Congregational Development budgeted line item be reduced by $141,892. The new total will be $146,126. We request that the Bishop not fill the vacant position of Director in 2023, allowing these savings in compensation, benefits, and expenses. The Bishop will work with the Congregational Development Committee and conference staff to oversee necessary and desired work in this area through 2023.
Second, we propose the Comprehensive Protection Plan budgeted line item be reduced by $58,955. The new total will be $641,045. The billing for the CPP will be reduced because of the loss of salaries from those churches exiting in June and August, allowing these savings.
Third, we propose the Contingency line be reduced by $23,000. The new total will be $27,000. CFA will pull up to $23,000 from reserves to use for this purpose as needed.
These proposed reductions total $223,847, which will ensure that remaining churches do not have increased apportionments resulting from these disaffiliations. CFA extends our appreciation to the District offices, which are also looking at reducing their 2023 budgets.
CFA anticipates challenges in setting the 2024 budget as we absorb the full apportionment loss of over one million dollars. We thank our Bishop for his leadership as we gather a larger conversation about our mission and priorities before we set a new budget for 2024. Together we believe we can meet the challenge and serve our Lord fruitfully in the years to come.