Commentary on the
UUS:E 2022-2023 FY23 Proposed Budget
Randy Kurker-Stewart and the UUS:E Finance Committee
The FY23 (July 1, 2022, to June 30, 2023) budget projects expenses of $537,070 and income of $481,900, a shortfall of $55,170 that will need to be covered by increased fundraising, transfers from our Endowment and Reserve accounts, and a possible second pledge drive in the fall.
Our Stewardship Campaign fell short of our goal by $18,000. Pledges are down 2% from FY22. Fundraisers are budgeted lower than historical levels due to the negative impact of COVID and the uncertainty of the pandemic recovery. Total income of $481,900 is lower than this year’s budget by $14,100 and expenses are up by $9,520.
Historically we have tended to end the fiscal year better than projected as we receive unexpected additional donations and gifts and spend slightly less in various expense categories. However, our projected deficit has never been this large. We are budgeting drawdowns from reserves of $55,170, which includes $10,000 from our endowment fund. Our reserves cannot sustain continued losses and we must creatively address increased fundraising. Again, we may need to conduct a second pledge drive in late fall.
Expenses include a 2% increase for our staff, with no new positions added. We have achieved our goal of compensating our staff according to UUA guidelines. We are proposing to offer long term disability insurance (LTD) to our employees, which will cost us $3,660. This is a benefit offered by most congregations our size and recommended by the UUA. Currently our employees pay 100% of this important coverage. Next year includes twenty-seven pay periods, one more than typical. The individual salaries reflect twenty-seven pay periods, the HR total includes an offsetting payroll accrual for the 27th pay period.
Expenses other than Human Resources and fixed costs have increased approximately 5% to reflect projected inflation. Total administrative expenses are decreasing $1,210. Our UUA annual dues are up $660 to $28,460, offset by a reduction in Technology as our expenses relating to improvements for Zoom services taper off.
The Building and Grounds budget is flat, as a vendor change has reduced elevator maintenance, offsetting the inflation adjustment.
Program expenses are increasing by $745, based on increased music license fees for streaming services. The Religious Education budget is increasing by $1,550 as we provide additional funds for recognition of the critically important, numerous dedicated volunteers that make our RE program so successful.
