LAKELAND — The audit of the Florida Conference’s 1999 financials revealed that the year’s budget deficit was less than originally anticipated, according to Dr. Randy Casey-Rutland, interim conference treasurer. The total deficit was $777,021, more than 22 percent less than the $1 million amount previously announced, but 54 percent larger than 1998’s shortfall of $504,000.

Despite its cash flow problems, Casey-Rutland says the conference is "unusually financially healthy." In 1999, the conference reported a $6.8 million increase in its net worth, which is now at $76.4 million.

"We’re multimillionaires in assets, but don’t have enough cash to pay the bills," he said. "We’re not bankrupt, we just don’t easily receive enough apportioned contributions to pay the bills."

The conference’s net worth is the total value of everything the conference owns. That includes the United Methodist and Episcopal buildings in Lakeland, the camp facilities, and funds held by the New Church Development and Church Redevelopment committee, the Board of Pensions and Preachers Relief Board. It does not include local church land or assets or the Florida United Methodist Children’s Home, Foundation, Development Fund or Credit Union.

The growth in the conference’s assets is primarily the result of the increased value of investments in the stock market, Casey-Rutland said.

The budget deficit problem is, however, continuing into 2000. The conference has been receiving less in contributions from local churches in 2000 than in 1999 through April.

In May a number of churches "pre-gave their apportionment money to the conference, and that has helped our cash flow," Casey-Rutland said.

The Florida Conference receives an average of $1 million each month from conference churches. Other sources of income include returns on investments and fees for programs like summer camp. The conference spends between $1.5 and $2 million each month.

The conference is making up for its budget shortfall by spending money from its cash reserves. As of Jan. 1, the conference had $1.6 million available to fill the gap between receipts and expenditures. How long the reserves last "depends on how much we get in apportionments each month," Casey-Rutland said.

Morgan Wright, president of the conference’s Committee on Finance and Administration (CFA) and a member of Cason United Methodist Church, Delray Beach, said he is frustrated at trying to establish a conference budget based on the expectation of receiving 100 percent of contributions, but knowing that "84 to 85 percent is the best we can hope for."

Wright said the logical answer is for every church to pay its apportionments. Unfortunately, he says, it is not that simple.

"The other side of the fence is that some churches just can’t pay their apportionments…some that are in rebellion against apportionments and others that are in a declining position and are lucky to be able to pay the light bill," he said.

Despite the financial problems, Casey-Rutland said he doesn’t believe conference administrators have been poor stewards. "The conference spends less than budgeted even without the deficit," he said. "I think the conference has wasted precious little money."

Wright believes many churches are in a similar situation to the conference. "Most people have bare-boned themselves so much," he said. "There’s no frills in the budget."

While conference leaders look for solutions to the problem, Casey-Rutland said he hopes members will help provide some answers. "All we can do at the conference level is cut programs to reduce expenses," he said. "Or we can go out and get more people excited about the work of God in the Florida Conference."

Wright believes the best way to address the problem is to help church members, especially younger ones, better understand where their money goes.

He would like to see an intentional effort to let church members know what the various apportionments are and how the money is used.

"When we send out apportionments, we don’t tell them what it is, we just put it on a piece of paper and say, ‘This is your line item,’ " he said. "The younger generations coming into the church don’t understand…and they don’t give to what they don’t understand."