2013-2016 GCFA Quadrennial Training Conference Council on Finance and Administration Chair Track

General Church Apportionments Conference Council on Finance and Administration Chair Track General Church Apportionments

Conference Council on Finance and Administration Chair Track 2009 2010 2011 2012 Quad Church Exps 4,231 4,403 4,597 4,799 18,031 P Factor 3.71% 3.60% 3.49% 3.44% 3.56% Apportioned 157.3 158.5 160.6 165.3 641.9 The 2008 General Conference agreed upon only two sets of numbers… they agreed upon the first and second columns above. The first column represents the total amount of church expenditures in the United States. These numbers are in Billions. They are the expenditures predicted to be expended by all local churches. These expenditures are reported on a 2 year lag through the stats that each Treasurer presents each year. Therefore, the expenditures of the local churches on which the apportionment formula is based for 2009 are actually the expenditures for 2007. We knew this amount going into the general conference of 2008… each subsequent year is unknown, and thus a prediction. The second column is known as the “P Factor” which represents the percentage of the total expenditures of all local churches which will become the general church apportionments. Note that this represents all apportioned funds, including the Episcopal and World Service Funds. Once the first two columns are known, the product of the two will become the amount apportioned for the general agencies. The second column becomes fixed for the entire quadrennium while the local church expenses will fluctuate to the predicted. Thus, the amount apportioned will fluctuate according to the amount of the local church expenses.

Conference Council on Finance and Administration Chair Track 2009 2010 2011 2012 Quad Apportioned 157.3 158.5 160.6 165.3 641.9 LC Exps chg 157.3 157.2 156.4 153.9 624.8 25% MEF (7.0) (6.9) (6.6) (27.5) Remit Appt 150.3 150.2 149.5 147.3 597.3 Therefore, based upon the predictions for local church expenses for 2007 through 2010 (for apportioned years of 2009 through 2012), the total amount to be apportioned, and the amount the general agencies budgeted for in the 2008 general conference was $641.9 Million for the quad. There was, however, a huge economic event in 2008 and 2009 created a serious deficit for the general agencies in 2011 and 2012. After adjusting for the downward shift in local church expenditures the total amount budgeted by the general agencies was REDUCED from 641.9 to 624.8 Million. After subtracting out the 25% of the Ministerial Education Fund kept at the local conference, that left $597.3 Million actually apportioned to the conferences.

Conference Council on Finance and Administration Chair Track 2009 2010 2011 2012 Quad Apportioned 157.3 158.5 160.6 165.3 641.9 LC Exps chg 157.3 157.2 156.4 153.9 624.8 25% MEF (7.0) (6.9) (6.6) (27.5) Remit Appt 150.3 150.2 149.5 147.3 597.3 No notes intentionally here.

Conference Council on Finance and Administration Chair Track 2009 2010 2011 2012 Quad Apportioned 157.3 158.5 160.6 165.3 641.9 LC Exps chg 157.3 157.2 156.4 153.9 624.8 Remit Appt 150.3 150.2 149.5 147.3 597.3 Act Remit 126.3 129.4 130.9 132.8 519.5 Of the $597.3 Million apportioned to the conferences, $519.5 Million was actually remitted. With all of this, to summarize, the 2008 General Conference approved a $641.9 Million budget for the agencies. After the local conferences keeping their share of the Ministerial Education Fund of 25%, they were apportioned $597.3 of which, $519.5% was remitted. The General Agencies budgeted $641.9 million in 2008, and received $519.5 Million, a decrease of $122.4 Million from the amount budgeted. In 2012, the general Conference approved a $603.1 Million budget for the general agencies. Again, this amount is based upon a table of percentages of an estimate of the local church expenditures for the US. This amount represents a 6.04% decline. This is the first time in history the denomination decreased its apportioned budget at General Conference (although it did happen unintentionally through the economic decline in 2009-12 quad). 603.1 = (6.04)%

Conference Council on Finance and Administration Chair Track 2009 2010 2011 2012 Apportioned 157.3 158.5 160.6 165.3 LC Exps chg 157.3 157.2 156.4 153.9 Remit Appt 150.3 150.2 149.5 147.3 Act Remit 126.3 129.4 130.9 132.8 2013 149.9 143.3 The purpose of this slide is to provide perspective on the downward momentum of the amount apportioned since 2009… going from $150.3 Million to $143.3 Million in 2013. What is impressive is the conference’s reaction to that downward momentum is an overall increase in remittances.

Conference Council on Finance and Administration Chair Track -11.4 Million $ -17 Million This slide shows the impact of the economic downturn on the amount apportioned. Again, keeping in mind that the amount apportioned in 2009 was based upon the local church expenses of 2007, the real impact was delayed two years… but the largest impact being in 2012 with an impact of over $11.4 million just from the result of the lower local church expenditures in 2010. Overall, there was a total impact of over $17 million on the amount apportioned to the conferences on behalf of the general agencies.