Resolution Discussion Group

Post Info TOPIC: Budget Formula
Tim Crump

Date:
Budget Formula
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If you were in control of the denomination what formula would you suggest for the various budgets we have? 

Would you keep deductions like pastor's insurance, debt/interest from your formula or do a flat amount based on income?

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Doug Haynes

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We currently have a complicated formula that most don't understand. I personally favor a flat percentage figured on what is raised in the current year with no deductions because of the simplicity of calculating it.   When you give deductions then the percentage has to be raised to cover the loss of revenue because of the deductions.

If the pupose of changing the budget structure is to reduce the budget, it will not accomplish it.  It may for a church for the first year but not the ensuing years.  I think the only way to reduce the budget is to reduce spending.  

Reducing spending means cutting or reducing funding of some budget items.  If the item being cut or reduced is worthwhile and it is to continue, funding will have to be generated in some other manner. 



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Russell Brewer

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Thanks Doug, I agree witht the Flat Percentage for budgets based on current year.  But the truth as you stated is to reduce budgets we have to reduce spending!  The General Church and the Distric Church must take the lead and do all that they can to reduce spending on their levels and allow the local church to have more of their dollars to spend localy on new effective ministries.

I understand that the General and District Church is faced witht the same increases in expenses as the local church, but they have to remember it is the local church that raises the money, it is the local church where ministry happens.  There is no General / District Church without the local church.

I appreciate the leadership of the Illinois District for their openess to change and strengthen the local church. I look forward to the days ahead to see how all of this is going to work out.

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