By J.A. Buchholz and Michael Wacht

LAKELAND — A prolonged financial deficit for the Florida Annual Conference could lead to a significant cut in ministry and staff, according to Dr. Randy Casey-Rutland, the Florida Conference’s treasurer.

“There is a gnawing negative impact of always receiving far less than budgeted,” Casey-Rutland said. “We fall behind in facilities maintenance and improvements, we have to borrow money…and pay interest on those borrowings, we have to ask the [annual conference] to authorize a line of credit…and there are many ministry opportunities missed, both here in Florida and around the world through our connectional apportionments.”

Through the end of September the conference has spent nearly $640,000 more than it has received, Casey-Rutland said. He said the Florida Conference Council on Finance & Administration (CF&A) is using a small amount of accumulated undesignated funds from previous years to stay afloat.

Apportionment receipts for September were a little more than $1.2 million, which is 20 percent or $200,000 above average, according to Casey-Rutland.

“September was a very good month for apportionments,” he said, but noted the money received will go toward General Church, as well as annual conference, funds. “Not all that increased giving came to the conference. Much of it went to benefit the General Church ministry and mission.”

The discrepancy between what the conference spends and the amount of money available is due to a reduction in giving, according to Casey-Rutland.

“Giving is down significantly across the board in just about all categories,” he said. “We run a shortfall at this time of the year every year. This year, the shortfall in operational income versus expenses is larger than in prior years.”

Finances could rebound, however, Casey-Rutland said. “We could recover completely in December. What we are experiencing now could just be a dip. If this is a long-term trend, there will be a significant, dramatic reduction in staff and programming. This is much more severe than we have experienced in recent years. This is a serious problem. We could have to cut programming and staff to bring expenses in line [with the operational budget].”

A prolonged decrease in giving could create a rippling effect, according to Casey-Rutland.

“I’ve never seen it so widespread and so dramatic,” Casey-Rutland said. “The difference is unlike corporations who build in profit margins of error. We don’t. There is no cushion. A 2- or 3-percent decrease in giving could mean hundreds of thousands of dollars.”

Casey-Rutland said the major factors contributing to the shortfall are reduced giving to apportionments on top of an increased budget and higher expectations for ministries, services and benefits. Based on CF&A’s recommendation the 2004 budget is 3.7 percent more than 2003.

“I think there is perceived value in much, but not all, of what the conference does, but I think many local churches are struggling with funding their own ministries,” he said. “When local churches are struggling financially, so does the conference and general church.”

Florida Conference apportionments to the General Church are more than any other conference. Two major areas of the conference budget are amounts that are fixed by the General Church. Those amounts, plus the clergy support area, account for about two-thirds of the total budget, leaving little room for adjustment. The bulk of any reductions made must be taken from the remainder of the budget areas—conference programs and ministries, new church starts, conference services and administration.

Adding to problem is the conference asking for more from churches with fewer members than ever before in the past.

Total conference membership declined from 334,053 at the end of 2001 to 332,124 at the end of 2002, according to a 2003 Florida Annual Conference Event report from Casey-Rutland, also the conference’s statistician. That represents a decrease of nearly 2,000 members. In 2001, the same report noted a decline of a little more 1,000 members.