2012 NGC Budget Interpretation

The recommended budget for 2013 is $24,036,338, a decrease of $6,575 versus the 2012 budget. Conference Mission and Ministry budgets were increased by $312,000 net. New Church Development program budget was left at the 2012 level.

This recommended budget includes the effects of the Bishop’s administrative restructuring. Specifically, an amount equal to the Director of New Church Development’s salary has been eliminated for 2013 (although an amount equal to one-half of the 2012 salary remains in the 2012 budget and will “roll forward” into 2013), an amount equal to one-half of the Executive Assistant’s salary has been eliminated for 2013, and all communications-related budget amounts requested for 2013 have been reclassified from the Executive Assistant to Connectional Ministries (office).

General apportionments are down 4.4%.

CONFERENCE FUNDS:

AREA I. Ministerial Support

Episcopal Residence/Office/Discretionary - $130,000

The Episcopal Residence and Office Fund provides the conference share of financial support for the office and residence expense for North Georgia’s Resident Bishop. ALL Bishops are required to reside in conference-owned residences. In 2013, the General Church share of residence support is assumed to be $10,000, while the General Church’s share of office support is assumed to be $77,300

District Superintendents’ Compensation - $1,736,510
The District Superintendents’ Compensation line item represents salaries, health insurance and pension benefits for the twelve (12) district superintendents of our conference.

Equitable Compensation Fund - $300,000
The Equitable Compensation Fund enables our conference to ensure all appointed clergy will receive Conference minimum compensation.

Board of Ordained Ministry - $401,600
The Board of Ordained Ministry provides support for conference clergy through myriad services, continuing education activities, seminars and Emory Clergy Care. It screens and evaluates candidates for ordained ministry. This ministry enables our conference to meet the high standards and expectations of local church congregations.

Total Area I - $2,568,110

AREA II. Retired Ministers Pension and Insurance

Retired Minister Insurance Premiums - $2,500,000
Benefits Office Staff and Admin Exp. - $250,000
Retirees’ Disability Premiums - $250,000
Retirees’ Past Service Pension (pre-1982) - $4,000,000
Retired Minister Pension/Insurance reflects funding for the pre-1982 pension liability, as recommended by the Conference Board of Pensions. This “past service liability” must be fully funded by the year 2021. The unfunded liability at 12/31/11 is estimated to be $23.7 million. Also included is the Extend Health “premium” for the new Medicare Supplemental Insurance program for retired clergy. The amount is based on premiums passed on to the conference by the General Board of Pension and Health Benefits. This new Extend Health program will facilitate, over time, a significant reduction in the retiree medical insurance unfunded liability, estimated to be $33,992,000.

Total Area II - $7,000,000

AREA III. Administration Fund

Annual Conference Session/Journal/Handbook - $176,000

The following Area III office “sub totals” include director and staff salaries and benefits and office related expenses.
Office of Treasurer/Admin/Computer Services - $550,000
This office develops, maintains and administers a comprehensive plan of fiscal and administrative policies, processes and services for the Conference and oversees Simpsonwood Conference and Retreat Center. Additionally, the office provides workshops for clergy and laity who serve as church treasurers, financial secretaries, business administrators and finance committee chairpersons. This office also administers all conference databases and computer equipment. The computer systems manager also provides support for the district offices.

Office of Ministerial Services and Spiritual Formation - $275,000
This office provides for the many needs of those who have dedicated their lives to God’s service through the church, including maintenance of clergy service records/files. This department also provides for credentialing and support of all conference clergy.

Office of Executive Assistant to the Bishop - 222,548
This office provides assistance to the Bishop. The 2013 recommended budget includes salary and benefits for one-half of 2013 for the Executive Assistant and a full year salary and benefits for the administrative assistant.

BOT/Methodist Center Operating Expenses - $120,000
This represents net operating expenses for the conference offices, including utilities and housekeeping and maintenance. This line item also includes debt service for the Episcopal Residence of approximately $19,000.

Council on Finance and Administration - $108,500
This includes conference and district audit fees, legal fees and meeting expenses for CFA.

Cabinet Expenses - $50,000
This represents expenses for Cabinet members related to Cabinet meetings, including Annual Conference session and Pastor’s School.

Total Area III - $1,502,048

AREA IV. Conference Benevolences

Connectional Ministries Office:
Office Related Expenses - $919,607
Program/Ministry Teams - $422,500
Sub Total Connectional Ministries Office - $1,342,107
Conference Leadership Development - $30,000
The Connectional Ministries functions are responsible for equipping and training local church leaders for effective ministry, including Existing Church Development (with attendant programs such as Natural Church Development). The 2013 request includes $75,000 for “Bridges” projects. Also note that ALL communications-related line items requested by the current CIO have been moved to the “office” component of this area.

Action Ministries - $400,000
This ministry continues the transformation of communities by counteracting social issues such as poverty, hunger and homelessness. This represents an increase of $300,000 over the 2012 budget.

Housing and Homeless Council - $12,000
This line item will help fund staffing and office expenses.

Ministry of the Laity - $45,000
The Conference Board of Laity fosters awareness of the role of laity both within the local congregation and through their ministries, develops and promotes stewardship, provides for training of lay members, provides support and direction for ministry of the laity and provides organization, direction and support for the development of local church leaders.

Total Area IV - $1,829,107

AREA V. Capital Funding

This line item includes a total of $145,000 for Camp Glisson . Also included is $25,000 for equipment . Debt service of $251,000 related to Simpsonwood is included in this area. There is a $150,000 line item (up from $1,000) for partially funding depreciation at the UM Center.

Total Area V - $521,000

AREA VI. Higher Education and Campus Ministry

This line item represents support to the seven (9) United Methodist Colleges (7 in NGA) and eighteen (18) Wesley Foundations (12 in NGA) on college campuses in Georgia. The balance goes to support office expenses and capital funding.

Total Area VI - $1,019,082

AREA XII. New Church Development

The Office of Church Development and Staff
The salaries, benefits and expenses for all remaining personnel in the Office of New Church Development.

New Church Salary and Support
These funds are used to underwrite the compensation packages of our new church pastors and also to provide some start-up funding.

Research and Development
These funds are used to maintain a contract with a demographic consultant and to provide partnership opportunities with districts to develop district strategies.

New Pastor Training and Assessment
These funds are used to conduct the New Church Leadership Academy as well as to train assessment teams.

Total Area XII - $1,830,735

AREA XIII. Simpsonwood

This item is funding as recommended by the March 24, 2007 called session of Annual Conference. This line item represents an operating subsidy for Simpsonwood, and is necessary in order to fund anticipated operating shortfalls. Legal and real estate professionals, working under the tutelage of the Conference Task Force are judiciously seeking alternative uses for Simpsonwood, with the goal of reducing/eliminating this subsidy as expeditiously as possible.

Total Area XIII - $500,000

GENERAL CHURCH FUNDS:

AREA VII. Black College Fund

This line item represents our denomination’s support, via supplements, of the operations and capital funding of historically black colleges and medical schools related to the United Methodist Church, including Clark Atlanta University and Paine College.

Total Area VII - $463,139

AREA VIII. Ministerial Education Fund

This ministry provides our churches financial support for the recruitment and education of our future pastors and bishops. Please note that our conference retains 25% of the fund balance for use in our conference. The retained fund balance as of 12/31/2011 is $ 383,963. Scholarship grants can total $1,000 per semester for undergraduate studies and $2,000 per semester for seminary students with a lifetime maximum per student of $16,000.

Total Area VIII - $1,161,122

AREA IX. Interdenominational Cooperation Fund

This fund enables United Methodists to have a presence in the activities of ecumenical organizations, and provides our United Methodist share of the basic budgets of those organizations which relate to the ecumenical responsibilities of the Council of Bishops and the General Commission on Christian Unity and Inter-religious Concerns. Included in this fund in 2012 is support for: National Council of Churches $30,000; World Council of Churches $25,000; World Methodist Council $20,000; Pan-Methodist Commissions $3,000; Ecumenical/Multilateral Conv $10,000; Other $2,764.

Total Area IX - $90,764

AREA X. World Service Fund

The World Service Fund enables our denomination to strengthen its evangelism efforts, stimulate church growth, expand Bible studies and enrich spiritual commitment. This fund allows us to share in a worldwide ministry, including support for missionaries.

Total Area X - $3,382,084

AREA XI. Africa University

This fund supports the development of the first private university for young men and women from all over Africa. Courses of study include agriculture theology, medicine and dentistry, education, technology and management.

Total Area XI - $103,643

AREA XIV. Episcopal Fund

This fund pays the salaries (2012-$135,880) and benefits of active bishops worldwide and support for the retired bishops worldwide, funds the majority of the expenses related to episcopal offices and a portion of episcopal residence expenses. It also funds episcopal travel and moving expenses. There are 51 Jurisdictional and 18 Central Conference bishops and over 100 retired bishops who receive support from this fund.

Total Area XIV - $980,090

AREA XV. General Administration Fund

This area funds those General Church activities that are specifically administrative in nature, such as the General Council on Finance and Administration, General Conference session, Archives and History and Judicial Council.

Total Area XV - $408,109

AREA XVI. Jurisdictional Mission and Ministry Fund

This area supports the Jurisdictional Offices in Lake Junaluska, NC.

Total Area XVI - $257,305