09180
March 6, 2009
GAC Executive Committee announces mandatory furlough, elimination of 2010 salary increases
Moves will save nearly $1.5 million as GAC labors to balance budgets
LOUISVILLE ― In the first two moves gauged to overcome a multi-million shortfall brought on by the global economic crisis, General Assembly Council (GAC) staff members at the Presbyterian Center were told today (March 6) that they will have an unpaid one-week furlough May 17-23 and will receive no salary increases in 2010.
The decision was made by the GAC Executive Committee during a conference call this week. Later this month, the GAC will review additional steps required to revise the 2009 and 2010 mission budgets.
The mandatory furlough and salary increase cancellation were taken now in order to give employees adequate time to plan their personal finances, a press release from the GAC said.
GAC treasurer and CFO Joey Bailey estimated that the furlough will save about $450,000 in the 2009 budget. Eliminating the pay increase will save about $900,000 in the 2010 budget. The exact amount of cuts needed to balance the 2009 and 2010 General Assembly Mission Budgets is still being calculated. The current 2009 budget, adopted by the General Assembly Council last September, is $110,885,317.
The GAC meets here March 25-27.
The timing of the furlough was carefully considered, the GAC press release said. “In May, GAC staff members receive three paychecks rather than the usual two. By scheduling the furlough in May, employees may find it easier to manage household budgets.”
“In addition,” the statement continued, “the furlough is scheduled the week before the Memorial Day holiday, so employees will have a total of 10 sequential days off.”
The Presbyterian Center, at 100 Witherspoon St., will remain open to accommodate other employees of Presbyterian Church (U.S.A.), A Corporation ― the Presbyterian Investment and Loan Program, the Presbyterian Publishing Corporation and the Office of the General Assembly ― and building tenants.
GAC staff members were asked to contribute ideas for budget solutions and a furlough was one of the most frequently submitted suggestions. The salary freeze was also frequently mentioned in employee suggestions.
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