GBC cuts 2011 budget to 2000 levels

Sherri Brown

Dave Shoeck, left, and Marcia McIntyre load boxes and bags during food distribution at Mulberry Baptist Association offices in this file photo from January. Cuts to the GBC budget will help bolster and maintain the effectiveness of ministries such as this one.

DULUTH — The recession may officially be over but a continuing slumping economy is forcing the Georgia Baptist Convention to trim its 2011 budget by $1,025,000 and once again reduce staffing levels.

The downsizing at the Missions and Ministry Center continues the reductions first set in place nearly two years ago when the effects of the recession began to be felt.

The first round of staff cuts occurred in February 2009, when 13 positions were eliminated, and followed by another 14 in November. This month’s reductions resulted in 12 positions being eliminated as the state convention works to bring expenses in line with income levels.

Staff positions eliminated during the nearly two-year period now stand at 39, placing the headcount at the Duluth headquarters building at a record low 103. That is down from a high of 163 employees in 2008 before the recession hit, said Mike Williams, assistant executive director and vice president of operations.

The new budget will bring state convention ministries back to the year 2000 funding levels as churches struggle to meet their budgets and forward fewer funds to the Cooperative Program. Georgia continues to struggle with an unemployment rate of 10 percent, almost half a percent higher than the 9.6 national rate, according to the Georgia Department of Labor website.

Some parts of the state are harder hit than others. Northwest Georgia, for example, is reporting that unemployment increased to 10.7 percent in August while the metro Dalton area is trending at 12 percent. September’s state figures are the 35th consecutive month that Georgia has reported a higher unemployment rate than the nation as a whole.

In addition to the 12 positions removed from the GBC headcount this fall, another 10 staff may take early retirement before the end of the year as the Convention reduces post-retirement medical benefits and Guidestone cuts annuity funding rates nearly in half to 3.75 percent.

State Regional Missionary program is curtailed

The largest area that was affected by the downsizing is the State Regional Missionary program, formerly known as Ministry Resource Consultants. In February 2009 their nine offices were consolidated into two locations and seven of their administrative assistant positions were eliminated. This month six of the consultant positions were eliminated and those original nine offices were collapsed into three: North Georgia, Central Georgia and South Georgia.

Executive Director J. Robert White described the current economic climate as “a perfect storm” due to the nation’s economic crisis and turmoil within the national denomination.

‘Toughest economy we have ever experienced’

“We are living through the toughest economy we have ever experienced. Many of our church members have been terminated from their jobs or have had their incomes reduced. This has significantly impacted our churches, which in turn has affected what our churches have been able to send on through the Cooperative Program,” White told staff in a special chapel service on Oct. 13.

“With reduced Cooperative Program resources and accompanying cash flow challenges, we have had to make the difficult decision to remove employees in order to meet our stewardship responsibilities. The employees who were terminated from their positions were excellent employees; these decisions were made not on performance, but of necessity.

The state executive said the Convention provided “excellent separation benefits” to the employees and where it was feasible, allowed employees to retire with full benefits – before such benefits are trimmed after Dec. 31.

He also said that the GBC is doing “all in our power to assist these employees by recommending them to other positions. The spirit of these employees has been excellent. I have truly been inspired by the graciousness with which these individuals have treated the eliminations of their positions.

“For now, we have completed the layoffs necessary for us to move forward. I sincerely hope, as does every member of our executive Leadership team, that no further layoffs will be necessary.”

A plan to reduce staff salaries by 3.5 percent with fewer staff reductions was among options considered to reduce overhead. Staff furloughs next year may be an option if Cooperative Program income continues to slide. As is being experienced in many churches, GBC employees are entering their third year with no salary raises due to the harsh economic conditions.

Budget vote set for Nov.

Messengers will vote to approve the reduced budget for 2011 when they gather for the annual meeting at Sherwood Baptist Church in Albany Nov. 15-16. The $45-million budget represent a decrease of 1.10 percent from the previous year.

At last November’s meeting messengers approved a $45.5 million budget for 2010, which was down 8.2 percent – or $4.1 million – from the previous year (2009). When that amount is added to the previous year’s decrease (2008 budget year) of 5.16 percent, the 2011 budget will be a cumulative 14.46 below that of three years ago.