The Finance team has just completed a draft budget for the coming fiscal year (July 1, 2024 to June 30, 2025). The budget will be reviewed and tweaked by the Board, and then presented to the congregation. No budget is final until it has been approved by the congregation at the annual meeting. There will be opportunities for comments and suggestions during the weeks before the vote.

As you look at the budget, it is important to look at both the Operating numbers as well as the “below the line” numbers. Operating refers to ongoing income (pledges, rentals, etc) and expenses (salaries, utilities, etc). The Operating budget has typically shown a deficit, but a small deficit is sustainable because income from investments covers the loss without dipping into the principal.

The “below the line” items include investment performance (which is unpredictable) and capital improvement projects. We’ve put the McKimm projects below the line as well, since they are currently defined as not ongoing expenses. If expenses here (plus the operating deficit) exceed investment gains, we are drawing money out of the investment account.

All of this is really quite similar to your own personal budget. You don’t really want your normal expenses to exceed your normal income. That’s the Operating budget. But maybe you have some investments that build in a separate account. You don’t typically want to count on those investments to cover a shortfall in your operating budget, but you might justify dipping into them for special purposes (like a major purchase).

If you have any questions about any of this, you can reach the Chair of the Finance Committee, Don Stimpert by email, or better yet, attend the budget review meeting that will be scheduled in the near future.