The Ministerial Education Fund was established by action of the 1968 General Conference as a means of engaging the total membership of the church in an effort to equip annual conferences, theological schools, and the General Board of Higher Education and Ministry to meet the need for increased resources for the recruitment and education of persons for representative ministry. While the initial focus was on the ordained ministry, programs which benefit both diaconal and ordained ministers are now funded. The fund supports local pastor courses of studies, continuing education, and programs which strengthen the ministry of every local church.
The General Council on Finance and Administration strongly believes that the Ministerial Education Fund is critical to the development of clergy and lay leadership for our local churches in the coming years. The Council is concerned about the declining proportion of persons coming into annual conference membership who are United Methodist seminary graduates, about the declining percentage of denominational financial support for United Methodist seminary budgets, and about the corresponding increase in student indebtedness.
It believes that it is essential that United Methodist seminaries and their faculties play the key role in developing leadership committed to the connectional nature of The United Methodist Church and its mission in the world.
The Council observes that, while only small increases in the apportioned amount are recommended, each 1% increase in the percentage of receipts on the apportionment will result in approximately $165,000 per year in additional support for the theological schools, and nearly $70,000 per year in additional funds available to annual conferences for programs of education and professional support for persons in representative ministry. Local churches and annual conferences are therefore urged to give increased visibility to this fund and the need it addresses.
Background
The Ministerial Education Fund was first apportioned in 1970 to the annual conferences as one of the church's general funds, on the basis of 2 percent of local church expenditures for all purposes, excluding payments for benevolences, new buildings, and servicing of debt. Subsequent General Conferences have revised the base, but the fund continues to be supported by receipts on an apportionment of 2 percent of certain local church expenditures. Amounts apportioned during the 1993- 96 quadrennium have ranged from nearly $25.3 million in 1993 to just over $27 million in 1996.
During its first three years (1970- 72) more than $16- 1/2 million, about 67% of the amount apportioned, was received to support the purposes for which the fund was established. For the five succeeding quadrennia and for the first two years of this quadrennium, the record of support is as follows:
Years(s) Apportionments Receipts Percent of Goal
1973- 76 $39,516,832 $30,854,671 78.1%
1977- 80 50,363,288 41,400,261 82.2%
1981- 84 64,035,639 53,662,035 83.8%
1985-88 80,408,558 66,886,999 83.2%
1989-92 94,645,205 75,777,427 80.9%
1993 25,256,342 20,051,701 79.4%
1994 25,832,893 20,540,104 79.5%
The program provides that 75 percent of the receipts in an annual conference is forwarded to the General Council on Finance and Administration to be administered by the divisions of the Ordained Ministry and the Diaconal Ministry of the General Board of Higher Education and Ministry. The remaining 25 percent is retained by annual conferences for use by their boards of Ordained and Diaconal Ministry in their programs of education and professional support for persons in representative ministry.
Apportionment
The council recommends that this fund continue to be supported by receipts on an apportionment to the annual conferences, and that the amounts apportioned for the 1997-2000 quadrenium be as follows:
Years(s) Apportionments Receipts Percent of Goal
1973- 76 $39,516,832 $30,854,671 78.1%
1977- 80 50,363,288 41,400,261 82.2%
1981- 84 64,035,639 53,662,035 83.8%
1985-88 80,408,558 66,886,999 83.2%
1989-92 94,645,205 75,777,427 80.9%
1993 25,256,342 20,051,701 79.4%
1994 25,832,893 20,540,104 79.5%
The program provides that 75 percent of the receipts in an annual conference is forwarded to the General Council on Finance and Administration to be administered by the divisions of the Ordained Ministry and the Diaconal Ministry of the General Board of Higher Education and Ministry. The remaining 25 percent is retained by annual conferences for use by their boards of Ordained and Diaconal Ministry in their programs of education and professional support for persons in representative ministry.
The Ministerial Education Fund shall be apportioned as 2% of a base amount consisting of a set percentage of a two-year average of local church expenditures for pastors' and associate pastors' base compensation, pastors' and associate pastors' expense reimbursements and allowances, other staff compensation, current expenses for program, and other current operating expenses, as reported on the Local Church Report to the Annual Conference.
The "base amount" is defined as the amount which, when multiplied by the 2% factor, will yield the apportioned amount approved by the General Conference. The "set percentage" is calculated by dividing the "base amount" by the total of the local church expenditures listed above.
The base data to be used in calculating the apportionment for the years 1997-2000 will be that reported for the following years:
Apportionment Year Base Years
1997 1993, 1994
1998 1994, 1995
1999 1995, 1996
2000 1996, 1997
The apportionments for the Rio Grande Conference, the Alaska, Oklahoma Indian, and Red Bird Missionary Conferences, and the Iglesia Metodista Autónoma Afiliada de Puerto Rico will be exceptions to the formula and will be amounts determined by negotiation between the General Council on Finance and Administration and representatives of those bodies.
Distribution
Amounts received by the conference treasurer for this fund shall be distributed as follows:
1. Twenty- five percent shall be retained by the annual conference which raised it, to be used in its program of education and professional support for persons in representative ministry as approved by the annual conference and administered through its Board of Ordained Ministry. The boards of Ordained Ministry and Diaconal Ministry will confer concerning use of the funds, which will be administered through the conference Board of Ordained Ministry. Administrative costs of the boards of Ordained Ministry and Diaconal Ministry shall be a claim on the conference operating budget (¶¶ 733.2r, 734.3w, 921.1).
2. Seventy- five percent shall be sent by the annual conference treasurer to the treasurer of the General Council on Finance and Administration for distribution to the divisions of Ordained Ministry and Diaconal Ministry of the General Board of Higher Education and Ministry, to be administered by its Division of Ordained Ministry as follows:
a) At least 75 percent of the amount received by the divisions shall be distributed to the theological schools on a formula established by the divisions of Ordained Ministry and Diaconal Ministry after consultation with the theological schools. All money allocated to the theological schools shall be used for current operations, not for physical expansion, but can be used for improvements to aid persons with handicapping conditions.
b) The remaining portion of the amount received by the divisions shall be used for supplemental distributions to the theological schools and for board use in its program of ministerial enlistment and development.
c) Administrative costs incurred by the divisions in the administration of this fund shall be a prior claim against that part of the fund administered by them.
d) Promotion and interpretation of the Ministerial Education Fund shall be by the General Board of Higher Education and Ministry in cooperation with and with the assistance of UMCom, the cost being a prior claim against that portion of the Ministerial Education Fund administered by the divisions of Ordained and Diaconal Ministry and within a budget approved by the board and the General Council on Finance and Administration.
General Conference Webmaster: Susan Brumbaugh
PETS Creator: John Brawn
Petition Text: 21112-FA-NonDis-O
1996 United Methodist General Conference