Understanding Apportionments in the Holston Conference: Financial Insights and Implications
This document provides a comprehensive overview of apportionments within the Holston Conference, emphasizing their definition, importance in church budgeting, and the factors influencing financial contributions. It discusses how apportionments are often seen as a tax, the effects of withholding funds, and how fair share calculations are conducted based on church spending. The results from previous years are highlighted, showcasing trends in collection rates, shortfalls, and allocations to support local churches and ministries. This information is crucial for church leaders and members aiming to understand their financial responsibilities.
Understanding Apportionments in the Holston Conference: Financial Insights and Implications
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Presentation Transcript
Apportionments John Tate, Conference Treasurer
Definitions • Apportionment means distribution or allotment in proper shares. ~Wikkipedia Methodist Definition • A tax • The first thing cut from the local church budget • Money withheld to show displeasure with the Bishop, D.S., or any other entity within the Holston Conference.
Fair Share Calculations • Inputs • Annual Conference Budget • Table II Information • District Funds • Church Staff Compensation • Housing Allowance & Expenses • Church Programming Expense • 10% Cap on increase and decrease
Apportionment Inputs Preliminary
A/B=C C Adjusted for cap=D D*E=Church Apportionment A=Conference Budget B=Total Church Spending C=Unadjusted Decimal D=Adjusted Decimal E=Local Church Spending (Lines 56, 64-72)
2008 Apportionments • Local Church Spending 4.51% • Initial estimates: • 584 churches with reductions • 317 churches with increases
Financials & Budget Sandra Davis, CCFA President
2006 Results • 88.03% Lowest Collection Rate • $35,000 more collected in 2006 vs. 2005 • 681 churches paid 100% • 27 churches paid $0 • $1.8 million shortfall • Pension Funding • Health Insurance Funding • Higher Education Funding • Ministries
2007 Allocation of Costs • Review of Chart • Over 50% of costs for apportionments are returned to the local church in support of local pastor • Pensions • Health Insurance • Pastoral Counseling • Board of Ordained Ministry • Church Extension Grants
Holston Conference 2008 Budget $15,736,366
Budget 2008 • Expectation of 100% Collections • Eliminated shortfall planning • Collections are 90%, ministries will suffer • Reduced apportioned amount by $100,000 over 2007 • Eliminating shortfall $400,000 budget in 2007 • 0% Health Insurance premium increase
2008 Budget Highlights • Personnel Costs • No new positions • $60,000 increase in personnel costs • Operating Costs • $140,000 Increase in programs over 2007 • Total Spending • 1.96% increase in overall spending $302,193 • Significant increases in support of local church and ministries
Pensions & Health Insurance Charlie Harr, Chairman
Health Insurance • Program is not attractive to Healthy Individuals • $15,360 for family coverage • $5,688 for individual coverage • Only 80% of eligible pastors participate in health insurance program
Reducing Costs to Pastors • Collecting 100% of Apportionments • Retiree Health Coverage • Increasing participation among pastors • Leveraging reserve funds
Retiree Health Insurance Proposal • Maintaining on-going financial viability • Program Highlights • BCBS Supplement • Medicare Part D Prescription Program • No changes to dental coverage • Obstacles • Fear of change and misinformation • Communication
Future Cost Saving Options • Pensions funding and liability • Raising out of pocket maximums • Redistributing the cost sharing of health insurance • Mandatory health insurance (100% participation) • Direct Billing
