NEWSLINE - June 30, 1997 Special Annual Conference Report NEWSLINE is the weekly online newsletter of the Church of the Brethren posted each Thursday by the Communications Dept. through cobnews@aol.com. Interested persons can "hear" Newsline by calling 410 635-8738 or receive a "fax" of Newsline by calling 800 323-8039, ext. 257. Newsline by "e-mail" is available by sending an online request to cobnews@aol.com. %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% NEWSLINE 06-30-97 1) The General Board's Executive Committee met Saturday and Sunday in preparation for the Board's summer meetings, scheduled for Tuesday. It: a) approved a $150,000 reduction to its proposed 1998 budget. b) heard a progress report on the implementation of the Board's redesign. c) approved measures designed to curtail the Board's spiraling insurance costs. d) received a plan calling for continued study on how SERRV International can become better equipped to compete in today's handcraft marketplace. e) approved its continued involvement with the World Council of Churches Central Committee. f) met in closed session to discuss candidates for executive director and two additional Leadership Team positions. 2) Annual Conference Moderator-elect Jimmy Ross resigns. 3) Standing Committee pares down the ballot for elected denominational positions. 1a) The stark reality of the Church of the Brethren General Board's financial status and its continued affect on the Board's ongoing redesign were described to the Board's Executive Committee, which convened Saturday and Sunday in advance of the Board's summer meetings on Tuesday. The committee first discussed and ultimately approved a request by the Board's Interim Leadership Team to reduce the Board's proposed 1998 budget by $150,000. The Interim Leadership Team, comprised of nine top Board employees, in March replaced the former five-member Administrative Council leadership structure. Interim Leadership Team members, summarizing one at a time how the redesign process is affecting their particular areas, said this budget reduction is difficult for them to propose -- as they don't know from where the reductions will come -- but is needed to ensure that the redesign is successfully implemented. There have been two financial assumptions throughout the Board's 2 1/3-year redesign process, said Judy Keyser, treasurer and director of Centralized Resources. The first is that the Board will be set up financially so that changes can be implemented over a five-year period without the need for further reductions. The second is that congregational giving will continue to decrease at about $40,000 per year over that same five-year period. In March the Board nearly approved 1998 budget parameters of about $5.3 million, but eventually settled for $5 million based on then-current financial projections. Even though the $5 million figure has been difficult for the Interim leadership Team to reach, the cumulative May 1997 budget report shows congregational giving to be $40,000 behind, with seven months remaining. Thus, a slight increase in giving that was experienced in 1996 is seen as an aberration, not a trend. "We believe a small reduction in 1998 will allow us to have a longer period of time where we won't have to make major reductions," Keyser said. "We're working to make the cup half-full instead of half-empty." Wendy McFadden, Brethren Press director/publisher and Interim Leadership Team member, said one point that needs clarification to Board and denominational members is the Board's financial reserves, which at more than $2 million could lead people to believe the Board's financial status has plenty of cushion with which to work. Though it was not discussed during Saturday's open session by the Executive Committee, it is known that the Board's reserves serve at least two purposes -- to buffer against financial shortfalls and to assist in the running of General Board ministries. The latter use is less known, though equally important. In short, the reserves allow the General Board to have cash flow by providing the Board with a source from which it can temporarily borrow. This practice is used often to cover payroll and other routine expenses, and occasionally for special circumstances. For example, in October 1995 Messenger magazine and Agenda newsletter were given the opportunity to purchase its paper for 1996 in advance at a savings of about $5,000, according to Nevin Dulabaum, Messenger managing editor. Because the expense for that paper had to be applied to the 1996 budget, about $40,000 was borrowed from the Board's reserves to purchase the paper. In January 1996 that money was returned to the reserves from the Messenger and Agenda budgets. As approved by the Executive Committee, the 1998 budget parameter that the General Board will consider on Tuesday calls for a budget of $4,850,000. Add to that $135,000 from the "Behold I make all things new" financial commitment program, and the total becomes $4,985,000. This is down from the $5,135,000 (including the "Behold" funds) approved by the Board in March. 1b) To explain their proposed $150,000 reduction to 1998 budget parameters, Interim Leadership Team members gave detailed reports regarding their efforts to shape the ministries they supervise in light of vast reductions in staff and resources. Wendy McFadden described the uncertainties faced by the new Brethren Press, which now includes the Board's publishing unit, Communication Team, yearbook and office of Customer Service. McFadden said she originally tried to rearrange work assignments so that work within the merged units could continue producing what they've produced in the past. However, faced with a $200,000 reduction in budget, tough decisions will need to be made. "We are at the point where we will have to figure out how not to do it all," she added. Because Congregational Life Ministries is one of the new areas created in this redesign, and an area that shifts part of the Board's ministry focus, it has received a lot of attention, said Glenn Timmons, director. Timmons' concern is that the perception will be that the Board has promised more than it can deliver. One key aspect of this portfolio is for teams of staff to be deployed in a handful of regions throughout the United States, with the responsibility of working together with congregations and districts. Financial realities appear to have limited the number of full-time Congregational Life personnel to nine, although that number should be higher through creative structuring, such as employing volunteers and sharing part-time personnel with districts. Timmons said his portfolio also will include Youth and Young Adult Ministries, a support staff position for Puerto Rico, financial support for an ecumenical evangelism center and curriculum development. One ministry not included is new church development, which Timmons said was not included in the Board's vision and core functions statements and was not identified by the Board as a ministry that should be continued. A reduction in funding means that Volunteer Service Ministries needs to make some tough choices, said Dan McFadden, director. With a reduction in personnel and budget, McFadden said Brethren Volunteer Service will suffer, particularly in the area of recruitment. However, he said he is committed to trying to attract as many volunteers as possible, particularly Brethren. One portion of the volunteer portfolio that will be hit hard because of reduced staff and resources is Program Volunteers, which includes volunteers who serve as General Board staff and in other capacities around the country. McFadden said he is going to try to address volunteer needs of the future by conducting a needs assessment survey among other General Board ministries and other Brethren organizations that utilize volunteers. The area hardest hit through redesign is Global Mission Partnerships, said director Merv Keeney. Reduced are missions to Africa and Latin America/Caribbean. Gone are missions in Asia, Korea, the Middle East and Europe (though Brethren Volunteer Service will still have a presence in Europe). "What do we have?" Keeney asked. "We have a base of programs in Africa and Latin America that we can build on." Global Mission Partnerships also includes Refugee/Disaster Services, which consists of Material Aid, Refugee Services, Disaster Services and Cooperative Disaster Child Care. Keeney lamented that his initial hope of having an assistant who would work with global outreach, serving to connect overseas ministries with congregations, will not be fulfilled because of a lack of funding. However, he has held discussions with Timmons about the Congregational Life Teams picking up an aspect of global ministry outreach. Judy Keyser, who serves as treasurer and Centralized Services director, said her portfolio has many future challenges. The biggest include operating two sites -- in Elgin, Ill., and New Windsor, Md. -- on supposedly a break-even basis; offering several duplicated services at both sites; trying to nurture the Brethren Conference Center in New Windsor to profitability; and providing phone, mail and computer services for all Board staff. Keyser summarized that she is uncertain how her reduced budgets will be met, particularly with some factors that are out of her control. Ken Neher, director of Funding, said his challenge has been to maintain the current level of staffing, as personal contact with donors is what will ensure the success of planned giving for years to come. However, because of a reduction in budget, Neher will not be able to replace himself in the field office in which he served prior to being named director. Thus, in addition to serving as director, Neher will also serve as field representative for the area west of the Mississippi. Though he is uncertain which portfolio will pick this up, Neher said Stewardship Education continues to be an area that is needed within the General Board structure, as that ministry works directly with congregations. With a projected decline in congregational giving, the need for stewardship education is obvious, Neher said. Two other portfolios -- executive director, Brethren Witness and Ministry -- remain unfilled. However, Karen Miller, interim General Secretary until an executive director is hired and is in place, said the General Board on Tuesday will receive proposals regarding these positions from the Executive Committee. The committee met in closed session Saturday afternoon and Sunday morning, presumably to deal with those positions. Asked about the status of the General Board's Washington, D.C., office, Miller replied that the director of Brethren Witness, when hired, will determine the future of that office. 1c) In an effort to keep yearly insurance increases to the General Board at 10 percent or less, the Executive Committee approved two measures that will reduce its future insurance costs. Beginning Wednesday, people hired by the General Board will be asked to pay 50 percent of the insurance premium for dependent coverage. This would not affect current employees, who pay 33 percent. The committee also approved a proportional insurance premium sharing plan for part-time employees the percentage of their workload compared to a full-time position is the percentage of their insurance premium that would be paid for by the Board. The General Board is expected to vote on the Executive Committee's recommendations on Tuesday. The Executive Committee also received a report on plans to raise medical deductibles, out-of-pocket maximum expenses and coinsurance formulas. Those possible actions won't be formally brought to the committee for action until the General Boards October meetings. Two other human resource issues were also addressed: The Executive Committee agreed to allow retired employees to draw their pension at 55, down from the current 60. And the committee agreed that the current policy for terminated employees, which has been modified during the redesign process, will return to the former policy unless a termination is related to redesign and approval is granted by the executive director. 1d) "We are our best when we can do our best." So said Bob Chase, director of SERRV International, when describing why a proposal will come Tuesday before the General Board that would allow for the study of several major proposed changes to the relationship the handcraft ministry has with the Board. The ministry, which traces its roots back to the end of World War II, needs to be able to compete with other handcraft organizations, Chase said. That means wage packages need to be adjusted, the location needs to be studied (SERRV currently is headquartered in New Windsor, Md.), computer software and hardware needs to be tailored to SERRV's unique needs, and the liability that the General Board has because of SERRV needs to be reduced. Thus, the current SERRV Study Committee of Bonnie Kline Smeltzer (chair), Rogers Fike, Judy Keyser, Charles Layman and Chase are asking that an advisory committee be named in October to replace the current study committee. The advisory committee then would investigate all aspects of separate incorporation and will serve as advisors to SERRV administrators. No action was taken as this was merely a report to the Executive Committee. 1e) Former general secretary Don Miller, during his tenure, was appointed to serve on the World Council of Churches' Central Committee. Even though Miller retired in December, that appointment is still active through 1997. Thus, the Executive Committee agreed to pay for Miller to attend the Central Committee's meetings this fall in Geneva. 1f) The Executive Committee met in closed session Saturday afternoon and Sunday morning, presumably to discuss candidates for executive director (formerly general secretary) and directors of Brethren Witness and Ministry. The full Board is expected to address these open positions in closed session Tuesday morning. If any of those positions are filled as a result, an announcement is expected sometime after the Board meets in open session, tentatively scheduled to begin at 10:45 a.m. 2) Annual Conference moderator-elect Jimmy Ross has resigned. Citing the need to eliminate stress following prostate cancer surgery in May, Ross said his doctor suggested that he resign from the highest elected position within the Church of the Brethren. Having served a year as moderator-elect, Ross was originally scheduled to be consecrated as moderator on Sunday. In a letter to moderator David Wine, Ross said his post-surgery recovery has gone well, except for a bout with depression. However, Ross said he feels the need to heed his doctor's orders. "As painful as this is, I feel I must do as he has suggested," Ross said. Ross' resignation was received on Friday, just four days before the start of Annual Conference. Ross, who announced several weeks ago he would be unable to attend this year's Conference, was scheduled to serve as worship leader during the opening worship service Tuesday evening. He will be replaced by Anne Myers, Annual Conference secretary. "It has been a great honor to be called by the church to serve Christ in this position of such great responsibility," Ross wrote. "I was looking forward to serving, assured of the prayerful support and cooperation of so many across the denomination. Please express my gratitude to everyone for the love, concern and prayers during the time of my surgery and recovery. In response to Ross' resignation, the Annual Conference Standing Committee approved motions stating that an acting moderator will serve the 1998 Conference; that Wine's tenure will extend through August 31, 1997; and that a person will be appointed by Standing Committee and confirmed by Annual Conference delegates to complete the 1998 term. 3) Standing Committee, convening in its meetings prior to the start of Annual Conference, has reduced the ballot of nominees for denominational positions by half. This is a routine task undertaken each year by Standing Committee, which will now send the remaining candidates on to Annual Conference delegates for final vote. These candidates are: *Annual Conference moderator-elect: Joan Deeter, N. Manchester, Ind.; Lowell Flory, McPherson, Kan. *Annual Conference secretary: Lena Miller, Westminster, Md.; Cathy Huffman, Rocky Mount, Va. *General Board, at-large: David Gerber, Hanover, Pa.; Donald Parker, West Salem, Ohio; Christy Waltersdorff, Lombard, Ill.; Myrna Wheeler, San Dimas, Calif. *General Board, Idaho: Edward Kerschensteiner, Boise; James Schmidt, Boise. *General Board, Shenandoah: Martha Barlow, Dayton, Va.; J.D. Glick, Harrisonburg, Va. *General Board, Western Plains: Don Booz, McPherson, Kan.; Christy Dowdy, Lincoln, Neb. *Annual Conference Program and Arrangements Committee: Marla Abe, Akron, Ohio; Becky Rhodes, Roanoke, Va. *Pastoral Compensation and Benefits Advisory Committee (five-year term): Scott Duffey, Westminster, Md.; Sharon Hutchison, Mt. Joy, Pa. *Pastoral Compensation and Benefits Advisory Committee (two-year unexpired term): Ron Beachley, Davidsville, Pa.; Sidney King, Nampa, Idaho. *Committee on Interchurch Relations: Joe Loomis, Furnace, Pa.; Ken Kline Smeltzer, Modesto, Calif. *Brethren Benefit Trust: Rosalyn Neuenschwander, Decatur, Ind.; Greg Geisert, Harrisonburg, Va. *Bethany Theological Seminary elector (representing the colleges): Eric Bishop, Upland, Calif.; incumbent Carl Bowman, Verona, Va. *Bethany Theological Seminary elector (representing the ministry): Debbie Eisenbise, Kalamazoo, Mich.; Guy Wampler, Lancaster, Pa.