The Executive Board of the California Southern Baptist Convention has announced that six positions have been eliminated, two by voluntary retirement. The CSBC announced the move June 17.
The executive board began discussing budgetary concerns during its September 2023 meeting, resulting from decreasing Cooperative Program income.
The 2023 anticipated budget totaled $6,000,000, while actual income fell by $660,570, netting CSBC only $5,339,430. The most significant decrease in CP came in the fourth quarter of 2023.
‘The reality’
Earnings from CSBC’s investments managed by the Baptist Foundation of California helped bridge the gap in 2023. Still, according to Marc Tempesta, CSBC’s chief financial officer, “the reality is CSBC must adapt to live within the means provided by the Cooperative Program. This means creating a budget that is sustainable and not dependent on market performance and other income sources.”
The 2024 CP budget of $5,700,000 was accepted by the board in September 2023 and by the messengers that October.
Tempesta further explained, “The 2024 CSBC Budget includes $5,700,000 of CP, as well as approximately $300,000 of reserves with the hope that CP would increase in 2024. Given the fourth quarter 2023 CP results as well as the year-to-date receipts in 2024, it became clear that changes needed to be made.”
‘Life blood’
Richard Spring, chair of the executive board’s finance committee, spoke to the CP shortfall. “The reality is that Cooperative Program has been declining, but the Lord provided through investment income with the Foundation,” he noted.
“We cannot always, nor should we, rely on those returns to be enough to bridge the gap,” said Spring, pastor of Living Hope Church in Hesperia. “We know that many churches are struggling financially due to the economy, and the CSBC is being proactive in response to the reduced amount given. We would ask them to prayerfully consider continuing to give to the Cooperative Program. It is the life blood of our mission to reach California with the gospel.”
Pete Ramirez, CSBC executive director, initiated conversations with staff members in January, explaining the realities of the state’s financial situation.
Additionally, Ramirez held one-on-one meetings with approximately a dozen convention staff members to inform them that if CP giving trends did not increase, they would be at risk of elimination while assuring them that there would be sufficient lead time for those who would prefer to retire or pursue other employment.
Year-to-date CP income has fallen short of the goal by $170,000 — or 7%.
Retirements
Karen Ehrlich, who has served as the convention receptionist in the Business Services Department for 16 years, voluntarily chose to retire. That position will not be refilled.
Katheryn Vana, ministry assistant for the Church Matters Department, has also decided to retire to care for a family member requiring assistance. This position will not be filled.
The four other positions being eliminated in the restructure will include: Send Network California ministry assistant, business Services ministry assistant, Disaster Relief coordinator, and communications department marketing coordinator
With these six positions, along with the retirement of Beth Ketcheside, executive assistant to the Executive Office, which was not a scheduled cut but replaced with a part-time assistant, the board is hopeful this will help balance the ratio between income and expenditures for 2024.
Open with leaders
In his response to the staff reduction, Ramirez noted, “We have used reserves the last three years to cover CP decline. The current [layoffs] will assist us in 2025 to assure that, as long as CP stays the same, we will not have to continue to depend on these reserves.”
He added, “We may be running lean and nimble for now, but I have confidence in the CSBC team to resource our churches in migrant work, missions, disaster relief, church health and compliance [and] evangelism, and I am sure we are the strongest partner for Send Network California and Church Planting.”
CSBC ministry teams are now being tasked to consider cost-saving alternatives to staffing, which could include part-time, student internship programs or recruiting volunteer help.
In addition to layoffs, the Executive Board has spoken publicly about the potential of reducing the national percentage of Cooperative Giving funds. However, a final decision has yet to be made.
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EDITOR’S NOTE — This story was written by Sarah M. Graham and originally published by California Southern Baptist Convention.
