January 21, 2003

Finance Report

In my letter to the Bethel Congregation on October 21, 2002, I reported that we had an income “gap” in our first quarter giving of $20,788, which at that time was 9.8% behind the approved budget. That “gap” for the first six months (July – December) is now $52,883, which is 11.3% behind the approved budget. Using this trend, the Budget Committee, when looking at the second half year budget, estimated year end income to be $830,000, or a gap of $96,800.

Last year the annual income was approximately $90,000 lower than the approved budget. This gap was mitigated by reduced ministry spending. When the Budget Committee met last summer to plan the budget for this fiscal year, it projected income to remain the same, which was $90,000 lower than last year. When the Budget Committee met recently to plan the budget for the second half of this year, it was faced with yet another forecasted reduction in income by year end of $96,800, or approximately $187,000 less than the approved budget last year. It was not possible to achieve this level of expense reduction without a severe restructuring of the Bethel staff and ministries, which we all felt was not the proposal that was best for Bethel in the second half budget ending in June, 2003.

The proposal from the Budget Committee and Council is that expenses will be reduced an additional $25,000 in the second half, in addition to the reduction of $20,000 already made in the first half of this year, for a total of $45,000 reduction for the year ending June, 2003. We are challenging the Congregation to close the remaining gap of approximately $50,000 by the end of the financial year ending in June. To accomplish this we are planning a stewardship effort to carry this challenge to all members.

This report marks the end of my seven years on the Bethel Executive Committee, serving as the Finance person for five years and as President for two years. I am grateful for the support of so many on this tour, and can witness that Bethel Lutheran Congregation is blessed to be a “Mighty Force”, capable of meeting not only the current needs, but accomplishing its Vision for the future.