Letter From KNCSB President
September 2010
At our April Mission Board meeting I spoke to the members of the Board about the possibility of a letter they might receive from me concerning the budget shortfall being experienced by our State Convention and the need to respond to that shortfall. Below you will find the letter I sent to our Mission Board in mid-July.
KNCSB Mission Board Re: 2010 Budget
At our Mission Board Meeting in April I mentioned the possibility of needing to write you about potential adjustments to the 2010 Budget. Unfortunately, that possibility has become a reality.
At the present time we are approximately $180,000 behind in receipts for 2010. At the current rate we anticipate a shortfall of $350,000 for this fiscal year. Because of the state of the economy across Kansas and Nebraska and because some churches in KNCSB have chosen to redirect some of their mission dollars in light of the adoption of the Great Commission Resurgence Task Force report, we need to consider a redirection of funds received through KNCSB.
After many hours of prayer and careful consideration, Bob Mills, David Manner, John Shields (KNCSB Vice-President) and I have a recommendation for you to consider. We recommend that we redirect Cooperative Program dollars (retroactive to January 2010) from 32% passed on to the SBC Executive Committee to 22%. This will provide approximately $300,000 – 325,000 for 2010 and make up for most, if not all, the forecasted shortfall in receipts. Bob has a plan (used by several other State Conventions across the U.S.) to present to the Mission Board at our September meeting that will help address this issue long-term.
Eighty percent of our budget is in personnel and other fixed costs. Even with reducing travel expenses and other program costs we cannot make up this difference between receipts and expenses. The KNCSB staff has done an exceptional job of reducing expenses but we still face a major shortfall. With the recommendation for budgeting in 2011 that Bob will bring to the September meeting, we expect that this redirection will end at the conclusion of the current financial year (December 31, 2010).
The final votes were tallied on August 4. Of the forty-four possible votes from members of the Mission Board three did not respond, one voted against the proposal and forty voted to support the redirection of funds through the end of fiscal year 2010.
This was a difficult and painful decision for us to make. As I told the members of the Mission Board eighty percent of our budget is invested in people. These people are making a difference for the Kingdom of God throughout Kansas and Nebraska. Short of massive layoffs or significant pay cuts this was the best SHORT TERM alternative we could find. Many hours of prayer and deliberation went into this decision. Several of the Mission Board members wrote short notes talking about how painful it was for them to approve this temporary redirection of Cooperative Program dollars. None of us took this lightly or casually. It pained all of us to redirect these funds because we are committed to the partnership of the Cooperative Program.
We continue to seek better mid- and long-term solutions that allow the Cooperative Program percentage to increase. Please pray for Bob and our State Convention Staff as they work within much tighter financial boundaries than ever before. They are being diligent in their efforts to reduce expenses and we owe them our thanks, our support and our prayers. If you have questions please feel free to call me: 316.648.4268 (cell), 316.942.2246 (office).
Thank you for your partnership in the Gospel. As we weather this storm, I believe that together we will become stronger and more passionate for the glory of the Name of Jesus being declared to the nations.
Thank you for praying, giving and going!
Ron Pracht, Pastor, Olivet Baptist Church, Wichita, KS, President KNCSB
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