FAQs:

Updated July 29, 2020

As of June 30, 2020, Treasury reports that we have not experienced a tithe reduction compared to this point last year. There is actually a $34,059.67 increase. This shows the faithfulness of the Texas Conference membership during these challenging times. Because of this faithfulness, administration has not had to implement additional phases as discussed in the June 3, 2020, video below. This is a fluid situation and only time will tell if additional phases are necessary. Until then, we put our faith and trust in the Lord that He will continue to guide us.

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Updated June 3, 2020

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Published March 2, 2020

A sincere thank you to all those who were able to join us for the Virtual Town Hall sessions with employees and members. We received quite a few suggestions and questions, which are appreciated. We apologize if we were not able to answer your question during the live broadcast. We will continue to add answers below as information becomes available. Your prayers are coveted in these challenging times.

Please note:

• Regarding staff reductions, specific names will not be shared.
• We take your questions seriously and want to answer them accurately, so your patience is appreciated.
• Questions emailed anonymously will not be answered.

Budget Concerns and Questions

General Financial Questions

Q: Why was there not any budget oversight in the last few years?

A: The Texas Conference has had a balanced budget for the past few years. The treasury team along with the finance and executive committee have worked hard to be judicious with the Lord’s funds. “The Texas Conference is growing faster than our resources,” Carlos J. Craig, Texas Conference president, shared with executive committee members.

The 2019 Constituency Session featured some of that growth from the previous four years with the formation of 56 active church plants that resulted in six churches, 28 companies, and 22 groups. Plus, there was an increase in membership of almost 8,000 since 2014. These are men and women, boys and girls, that decided to live for Christ, form new churches, and work to further the kingdom. This incredible growth opportunity meant that our churches would call for pastoral leadership.

With this in mind, and seeing a tithe gain in 2018, workforce personnel were added to meet the needs. This decision was an ambitious strategy and optimistic outlook for the future of the Texas Conference. Unfortunately, the returning of tithe did not hold pace with the growth. (Tithe dollars are what pays the salaries and benefits for Seventh-day Adventist Church employees.)

Q: How did the Texas Conference administration not see this deficit coming?

A: They did, but by the time they saw the return of tithe was not keeping up with the church and membership growth, personnel were already hired to assist the needs caused by the growth. The deficit could be easily fixed by reducing workforce, but the finance and executive committee chose to explore other options first. That was before COVID-19.

Q: Were there early signs that the conference would need to address concerning the budget outlook? 

A: There will always be banner years and years of loss. The trends for the conference in the past few years showed signs of continuous membership growth. Our goal is to weather the storms, no matter the economic climate. For this reason, the 2020 budget was created using 98 percent of the 2019 tithe numbers. A support committee was created that reviewed the tithe numbers from the past two years and recommended necessary changes for continued financial stability.

Q: What is being done to address the budget deficit? (Before COVID-19)

A: Here are the voted items the executive committee approved to deal with the budget deficit:

1. Not implement the suggested July 1, 2020 1.6% wage increase [1]
2. Attrition/Retirement/District Alignments (7 field, 1 Office)
3. Additional 25% reduction to all departmental budgets [2]
4. No local camp meeting funding in 2020
5. Discontinue spouse medical coverage in 2021 for those who have medical insurance options through their employers [3]
6. The Texas Conference administration will seek to find an additional $150,000 to reduce from the 2020 budget

[1] The wage increase amount is voted by the North American Division of Seventh-day Adventists. It is up to each conference executive committee to adopt it for its employees.

[2] 35% total—a 10% reduction was previously implemented

[3] If a spouse is unemployed or medical coverage is not offered through their employer, the spouse will continue to receive coverage through the Texas Conference.

Q: How will the budget restriction affect the field and local church ministries? (Before COVID-19)

A: We understand how important local church ministries are for the communities our churches operate in and believe that the actions voted by the executive committee will only affect local church ministries that rely on conference support. Our goal even for those areas is to be minimally affected.

Q: How has the Texas Conference spending changed since enactment of the budget restrictions? (Before COVID-19)

A: Even before the executive committee vote, the president suggested that no new positions be added as well as suggested a hold for all expansion plans around the conference for the next 24 months. Department directors were asked to reduce their budgets by 10 percent. They are now being asked to reduce them by an additional 25 percent.  Although Texas Conference has a surplus in reserves, a more aggressive position involving reduction of spending would be a more prudent approach.  The action of reducing cost, combined with a stewardship focus strategy, will provide long-term outcomes that will assure financial stability.

Q: What can the local church do to support reducing the deficit? 

A: A healthy and balanced stewardship program at the local church will not only strengthen the members and local church, it will benefit others conference-wide.  There are several resources available for the local church to plan and implement a stewardship focusedprogram. Here is where you can find great stewardship resources for your church:

• nadstewardship.org
• adventistgiving.org
• adventsource.org Search “stewardship”

Q. What is the goal of financial recovery?

A: Before the coronavirus, we had a two year plan for financial recovery. COVID-19 has put all organizations in uncharted areas, so there is no way to answer that question now with certainty. As a faithful God-fearing organization and with strong financial planning, though, we pray we will emerge from this current situation better and stronger than ever.

 

Government Assistance Question

Q: Can we utilize funds offered by the government to small businesses?

A: The Texas Conference, along with its churches and schools, is not eligible for PPP since there are more than 500 employees in the Texas Conference. Everyone who works at a Texas Conference church or school is an employee of the Texas Conference therefore the Texas Conference is not considered a small business according to the Small Business Administration (SBA) classifications. 

 

Personnel Questions

Q: The prioritization of the Texas Conference resources will affect how many employees? (After COVID-19)

A: That will be determined by the 18th of each month as tithe returns are reported from the churches.

• Currently, six part-time positions in the conference, 11 part-time pastors and 15 Bible workers will conclude employment as of April 30, 2020.
• Area travel allowances ceased as of May 1, 2020, for all officers, departmental directors, associate directors, pastors, principals and Bible workers.
• Voluntary exit program is available for those 65 years old and older with 15 years or more of denominational service.
• Redistricting and alignment of church territories that are below the tithe formula for pastoral coverage.

Q: When will the change go into effect?

A: The effective date was February 27, 2020, when executive committee members voted the proposed items by the finance committee during the duly called executive committee. March and April 2020 finance and executive committee members looked at additional reductions.

COVID-19 Questions

Q: Will the Texas Conference publish a report of COVID-19 cases within the conference?

A: Unfortunately, that is not public information due to HIPAA requirements so we won’t have that information to be able to share. Our Crisis & Issue Management page, that is continually updated, shares the number of cases currently in Texas.