Women of the ELCA Initiates 10 Percent Spending Cut

CHICAGO (ELCA) -- The executive board of Women of the Evangelical Lutheran Church in America (ELCA) -- the women's organization of the church -- implemented a 10 percent spending reduction across the 2002 budget when it met here Oct. 17-20. Current budget reports suggest that Women of the ELCA's 2002 Fifth Triennial Convention and Gathering cost the organization close to $1 million more than expected.
The gathering took place July 8-14 in Philadelphia. More than 3,000 women from across the country and around the world gathered under the organization's new three-year theme, "Listen, God is Calling." The triennial convention is the chief legislative authority of Women of the ELCA. Delegates elect officers and board members, consider resolutions from congregational units and women's organizations in 64 of the ELCA's 65 synods, and set the organization's priorities for work over the next three years.
"The budget for the Fifth Triennial Gathering was spread across a three-year period beginning with the 2000 fiscal year," said Michele Carr, Women of the ELCA's director for operations.
The budget for the 2002 Gathering was based on a "projected income" of $880,000, while expenses were projected at $1,960,750 for the three-year period, Carr said. A subsidy of $1,080,750 was built into the budget, she said.
Actual income generated from the gathering's registrations, grants and other revenue items totaled $526,530, while actual expenses totaled $2,537,035. With $1,080,750 in planned subsidy and generated revenue, the total amount overspent is $929,755, Carr wrote in a "preliminary report of income and expenses" distributed to the board.
Through its budget and finance committee, the executive board moved to place "an immediate 10 percent spending cut initiated across the budget" -- excepting salaries and benefits -- and, "in the event of a budget shortfall," move "emergency funds" from the women organization's New Ministries Fund to meet budget needs.
"The New Ministries Fund is an unrestricted, board-created fund" designed to help the organization "deal with emergency needs, among other things," said Linda Post Bushkofsky, who became executive director for Women of the ELCA on Aug. 1. "Removing funds from this program fits in with the board's purpose for the fund," she said.
"This is a very workable solution to get us out of the pit," said Denise Smith, Eagle River, Alaska, board member.
To help meet the financial obligation, "additional money from the organization's overall budget can be applied," Bushkofsky said in an interview. In the course of the year, significant underspending yielded more funds for Women of the ELCA. There are three job vacancies in the organization, for example, so money set aside for those salaries went unspent, she said.
In the context of the overall budget, "$250,000 is really what we must come up with to meet our needs within this fiscal year," Bushkofsky told the board.
Bushkofsky told the board that when she began her service as executive director after the convention, she spent "significant time reviewing the financial situation of the organization," especially the budget of the triennial gathering. In conversation with the organization's staff about convention spending, Bushkofsky told the board that "staff remained conscientious in their decisions and responsibilities."
"Philadelphia is an expensive town to host a convention," Enrique Rojas, director for travel and meeting management, Women of the ELCA, told the board.
He said the city's vendor and union labor costs had "exceeded expectations. Labor costs were estimated prior to the gathering. It was difficult to calculate a final amount until the actual time of the gathering." Some "unexpected" requests for materials also drove up expenses as well, Rojas added.
"We created the problem; we'll fix the problem," said Carmen Richards, Hope, N.D., board member. At the convention, Richards was elected to serve as treasurer for the women's organization.
"It is our responsibility for long-range planning," she said in her report to the board. "Trust and money is an issue the board must address," Richards said. "It is essential" for board members to "understand the budget in order to answer questions and provide information" to their synodical women's organizations. "Not being able to answer a question about the budget raises suspicion," she said.
"Effective communication and education" about the budget and programs of Women of the ELCA "must happen," Richards said. "People will not contribute to the organization if they do not understand what 'thank offerings' are, for example," she said. "I want to educate and seek your help to do it."

For information contact:
John Brooks, Director (773) 380-2958 or NEWS@ELCA.ORG
http://listserv.elca.org/archives/elcanews.html