namb_budget_90803

Posted: 8/29/03

NAMB plans cut in budget, staff

ALPHARETTA, GA (ABP)–The North American Mission Board plans to cut $11 million from its budget next year, which will eliminate 31 full- and part-time positions–some of which are vacant–and leave seven current employees without jobs.

The proposed $118 million budget–6 percent less than this year–awaits approval by trustees of the Southern Baptist Convention agency during their meeting Oct. 8.

The 2004 budget cuts $3 million from travel expenses, $1.6 million in communication projects, more than $4 million from support of various programs and $1.7 million from personnel expenses.

Officials blamed the cuts on sluggish contributions and the economic downturn. The agency joins other SBC entities and Christian ministries that have reduced staff and services recently. In June, the SBC International Mission Board eliminated 61 positions affecting 37 employees. A recent Baptist Standard survey of eight large state Baptist conventions showed all eight are receiving less money from churches than last year.

Twelve of the 31 NAMB positions are vacant and won't be filled. Three employees whose positions were eliminated will retire. Nine others are transferring to other jobs at NAMB. The remaining seven will lose their jobs. The agency employs about 460 people.

NAMB spokesman Marty King said the agency would not identify the employees affected. Positions were eliminated based on need, he said. "This is not a reflection of performance. This number was a lot bigger two weeks ago."

King said 11 eliminated positions are for support workers, 14 are professional positions that are not supervisory, and six are management positions with supervisory responsibilities.

NAMB officials project the agency's income next year will be $7.2 million less than the 2003 budget–nearly a 6 percent decrease. But some of that money will have to be directed to fixed-cost increases, they said.

"The bottom line is we anticipate having $3.4 million more in expenses we cannot control, but $7.2 million less income," said NAMB President Bob Reccord. "That means we must come up with nearly $11 million in spending cuts in 2004."

Reccord expressed appreciation to Southern Baptists for supporting NAMB financially, which he said "allowed us to endure our country's economic downturn better than so many other ministries, non-profits and even for-profit organizations.

"But we must face the fact that mission giving is not keeping pace with growing increases in expenses like health insurance, utilities, and capital and fixed expenses which will increase almost $3.4 million next year," he said.

Randy Singer, NAMB executive vice president, said that although income from the SBC Cooperative Program and Annie Armstrong Easter Offering–which together comprise more than 75 percent of NAMB's income–have increased incrementally over the past several years, those increases have barely kept pace with inflation.

"Due primarily to the impact of the sluggish economy on our investment income, NAMB has not reached income projections four of the last five years," Singer said. "We must submit a 2004 budget which takes that into account."

The proposed 2004 budget freezes salaries for NAMB missionaries and staff, the second year in a row staff have not received pay raises. NAMB funding of state Baptist conventions is not being reduced, but neither will partnership funding increase. The proposed staff reductions do not reduce support for NAMB missionaries who are jointly supported with state Baptist conventions, Singer said.