Posted: 9/29/06
Board examines total expected
BGCT 2007 expenditures
By Ken Camp
Managing Editor
DALLAS—The Baptist General Convention of Texas Executive Board not only recommended a $50.6 million 2007 budget proposal, but also looked at total anticipated expenditures from all sources during a Sept. 25-26 meeting in Dallas.
For the first time, the Executive Board examined all expected expenditures for the coming year, including allocated funds from investments and interest income from designated wills and trusts—a responsibility performed by the Administrative Committee prior to changes in the convention’s governance.
“The $50.6 million budget recommendation is based on our best projection of sustainable, expected receipts,” Treasurer and Chief Financial Officer David Nabors explained.
The recommended budget grew out of a “modified zero-based budget” proposal process developed by the BGCT research and development office, he said. Excluding personnel expenses, that meant “building the budget from the ground up,” he said.
All line items in the budget not related to personnel began at zero. Staff submitted 404 proposals justifying each program area, and the BGCT executive leadership team evaluated each in light of anticipated revenue and the convention’s vision, values and priority statements, Nabors said.
Beyond the expected $50.6 million in receipts, Nabors explained the reorganization and revamped budgeting process made necessary additional “bridge funding” for the next year.
In addition to the budget, about $1.16 million in designated and discretionary funds will help fund operations in 2007, bringing the sub-total to $51.76 million, he said.
“In 2008, we should not require those kinds of supplements,” he said.
Nabors also showed the board total anticipated funds his office expects to process in the next year. Add another anticipated $5 million from the Mary Hill Davis Offering for Texas Missions, $2.96 million in investment earnings and $33.6 million in worldwide gifts that pass through the BGCT, and the anticipated 2007 total exceeds $93.4 million.
Of the $5 million anticipated from the Mary Hill Davis Offering, about $3.68 million would be spent by the BGCT according to allocations approved by the Woman’s Missionary Union of Texas board, and $1.1 million would provide the Texas WMU budget. The rest would go to BGCT-affiliated institutions for approved missions causes.
Messengers to the BGCT annual meeting, Nov. 13-14 in Dallas, will consider the $50.6 million budget that includes:
• $23.98 million (47.4 percent of the budget) for institutional ministries, theological education and collegiate work, compared to $23.58 million (47.7 percent) in 2006.
• $6.26 million (12.4 percent) for financial management, including finance and accounting, human resources, information technology and facilities services, compared to $6.06 million (12.3 percent) in 2006.
• $4.9 million (9.7 percent) for missions, evangelism and ministry, compared to $5.6 million (11.4 percent) in 2006.
• $4.9 million (9.7 percent) for congregational strategists, church starters and affinity group strategists, compared to $4.7 million (9.5 percent) in 2006.
• $2.19 million (4.3 percent) for communications, including annual meeting planning, compared to $1.76 million (3.6 percent) in 2006.
• $1.5 million (3 percent) for congregational leadership, compared to $1.27 million (2.6 percent) in 2006.
• $1.24 million (2.5 percent) for the executive director’s office, including $382,758 for the WorldconneX missions network, compared to $1.46 million (3 percent) in 2006.
• $1.1 million (2.2 percent) for a service center, compared to $1 million (2 percent) in 2006.
It also includes $987,520 for the Christian Life Commission, $876,980 for Texas Baptist Men, $764,076 for research and development, $672,293 for the Texas Baptist Missions Foundation, $618,751 for associational missions and $550,560 for the chief operating officer’s office.
The $50.6 million budget represents about a 2.3 percent increase over 2006. The board approved $306,000 for merit salary increases and benefits increases for BGCT Executive Board staff. That does not include the executive leadership team, who declined any raises this year, or personnel who were promoted to administrative posts in the reorganization and consequently received salary increases in 2006.
Texas Baptist Cooperative Program giving would provide the bulk of the budget—$42.4 million. Another 7.26 million is expected from interest on invested assets, wills and trusts.
In addition, $802,428 would come from the North American Mission Board, in keeping with cooperative agreements between the BGCT and the mission board, to help fund church starting, missions, evangelism and some theological education initiatives.
Another $81,634 would come from fees, and $12,488 would come from the Mary Hill Davis Offering for missions-related items as approved by the Texas WMU board.
The proposed budget reflects a comprehensive staff reorganization that took place this year, which makes it difficult to compare the 2007 spending plan with the previous year, Nabors noted.
However, a look at the total funds available—$49.4 from the budget and a board-approved $1.77 million advance from interest on wills and trusts in 2006, compared to $50.6 million from the proposed budget and about $1.16 million from non-budget sources in 2007—shows a $546,919 increase in 2007.
For example, the adjusted figures—adding in non-budget money that includes board-allocated funds from previous years, Mary Hill Davis Offering allocations for specific missions items and investment earnings—show estimated 2007 expenses of:
• $24.21 million for institutional ministries and collegiate ministries.
• $7.72 million for congregational strategists, church starters and affinity group strategists.
• $6.92 million for missions, evangelism and ministry.
• $1.53 million for congregational leadership.
• $1.12 million for the service center.
• $1.04 million for the Christian Life Commission.
Looking only at the budget, mission, evangelism and ministry shows a $700,667 decline from 2006. Combine it with another missions-oriented program area—congregational strategists, church starters and affinity group strategists—and the 2007 totals still fall $492,412 short of 2006.
But compare the adjusted 2006 figures with the adjusted 2007 proposed expenditures—including allocated funds and assuming the Mary Hill Davis Offering goal is met—and the two areas combined gain $108,648.
David Cooke of First Baptist Church in Devine asked about personnel reductions, particularly singling out the elimination of posts held by Missional Church Director Milfred Minatrea, Community Missions Director Jim Young and City Core Initiative Specialist Tommy Goode.
BGCT Executive Director Charles Wade called the cuts “painful, difficult decisions.” While the elimination of three high-profile posts at one time captured attention around the state, they were not the only positions cut during the process of reorganization, he noted.
Community ministry tasks are being reassigned to other personnel, the missional church assignment will become one portion of another employee’s job description and the City Core Initiative was a two-year pilot plan—later extended to a third year—that leaders decided to discontinue, he explained.
Wade acknowledged he and others are “still trying to figure out the best way” to handle personnel transitions, and he pledged to strive for continued improvement. “I still feel we made the best decision in each case,” he said.
Several directors on the Executive Board raised questions about the budget development process, board input into the process and the flow of information to the board. Some directors specifically expressed concern that they first learned about the budget from articles in the Baptist Standard.
Debbie Ferrier of San Antonio, chair of the board’s Administration Support Committee, noted beginning next year, the finance sub-committee will meet at least one month prior to the board, rather than on the morning immediately preceding the board meeting.
That will allow the sub-committee time to review staff recommendations, make any changes members consider necessary and then send its budget proposal—not just the staff’s recommendations—to directors in advance of the board meeting.
In his report to the board, Wade noted changes in BGCT governance, staff structure and budget-making processes have been a challenging period of “growing pains” and transition.
“It has not been easy to negotiate this time of change, and it is still not comfortable for everyone. But it is getting better as outlines begin to take on more definition and the results begin to be visible,” he said.
Looking ahead Wade pledged the staff would “work hard to make the new organization function effectively … (to) … encourage, facilitate and connect churches in their work to fulfill God’s mission of reconciling the world to himself.” Starting churches and strengthening churches will be top priority, he promised.
Texas Baptists also “must develop a comprehensive mission vision that has as its theme ‘To Texas and beyond,’” he added. “From Texas, we can, and we must, touch the world.”
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