| Weak economy causes conference to prepare
By Michael Wacht
LAKELAND — August is historically the worst
month financially for the Florida Conference, according to Dr. Randy
Casey-Rutland, conference treasurer. A slightly worse financial
showing this August than in the past several years has caused
conference leaders to start preparing for a prolonged economic slump.
“In August, we typically hit bottom between
what we take in and what we spend,” Casey-Rutland said. “The
difference this year is about $1.4 million…but it’s usually over
$1 million. The difference is not dramatic.”
Bill Johnson, chairman of the Florida Conference
Council on Finance and Administration (CF&A), said the treasurer’s
office has been “monitoring the situation” on a month-to-month
basis and periodically reporting to CF&A. “So far, we’re not
seeing anything alarming,” Johnson said, but added that CF&A
members are “apprehensive about what’s going to happen” with
connectional giving.
The conference normally experiences a slowdown
in connectional giving during the summer and “a big upswing” in
December, according to Johnson. CF&A is not optimistic that this
December will bring an increase in giving “because of the economy
and what we’re hearing from local churches,” he said.
Casey-Rutland said the conference is doing “slightly
worse” in its connectional giving this year, and giving is less than
1 percent lower than in recent years. “Part of our concern is about
the ongoing deterioration of the economy, coupled with the increased
cost of property and casualty insurance, health insurance…,” he
said. “This doesn’t bode well for the short-term future of the
annual conference, especially over the next six to 18 months.”
Casey-Rutland said the conference’s
investments, which total approximately $30 million, have not been
generating as much income as they have in the past. A small percentage
is invested in the stock market, but most is invested in “income-producing
instruments” like certificates of deposit and bonds, which are
offering low interest rates. “These help fund things like new church
starts and clergy pensions and benefit programs,” Casey-Rutland
said.
The conference’s low level of cash reserves is
also fueling concern. “We operate on very narrow margins,”
Casey-Rutland said. “We don’t have a lot of reserves…only a
fraction of what we need to sustain ourselves for any period of time.”
CF&A is now taking a closer look at the
conference’s financial situation in light of the nation’s economy.
“At our last meeting, we formed a task force to review what appears
to be an increasing budget shortfall…and prepare recommendations for
our next CF&A meeting in December,” Johnson said.
Other conference boards and agencies are also
looking at ways to reduce expenses.
Casey-Rutland said conference leadership is
trying to be proactive in this situation. “We need to anticipate
what will happen in the next three to six months,” he said. “Crises
erupt when unanticipated bad things crash down upon you. CF&A is
looking at what kind of steps are needed to prepare if this
[financial] trend continues. And if it doesn’t continue, we’re in
good shape.”
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