Fewer dollars than in recent years are available for community allocations for 2009-2010, according to the plan approved by the Milwaukee Jewish Federation board of directors on June 23.
“The global economic downturn has had an adverse effect on both of our major MJF income streams,” said MJF president Bruce A. Arbit.
“Our community really stepped up to the challenges this year, but circumstances caused our 2009 annual campaign to finish down about 15 percent, and the value of our Jewish Community Foundation endowment assets has decreased as well.”
In addition, MJF’s unrestricted reserves – monies traditionally available to meet community needs – were drastically reduced.
“The impact of these combined losses is significant,” Arbit said, “and this can be seen clearly in the newly approved 2009-2010 allocations plan.”
Discussions of possible cuts began among MJF leadership in December 2008.
“Our leadership brought skill and passion to these conversations. Principles were established to guide the decision process, including the importance of maintaining fund-raising capabilities and continuing programs closest to the organization’s mission,” said Arbit.
Budget cuts were planned first for MJF core operations, including a decrease in programs and events, and more strategic use of staff time to support these activities.
Of MJF’s 25 core staff members, 3.75 positions were eliminated. An additional 8.5 positions were cut from the federation’s direct service programs (The Coalition for Jewish Learning, Israel Center, Partnership 2000, Jewish Chaplaincy Program, Jewish Museum Milwaukee, The Wisconsin Jewish Chronicle and Wisconsin Jewish Conference).
All remaining staff members took 4.5 percent wage cuts, with several employees volunteering additional cuts. In addition, employer contributions to employee health savings accounts were reduced by 50 percent, and employee contributions to health insurance premiums were increased. Taken together, all wage and benefit reductions averaged 12 percent.
This year’s allocations include:
• $1,933,200 (25 percent) to Israel and overseas
• $2,770,400 (35 percent) to local agencies and programs
• $2,171,600 (27 percent) to core Federation operations
• $1,078,350 (13 percent) to other allocations, including direct service programs, as well as United Jewish Communities and continental allocations through the National Agency Alliance.
In each of these major categories, allocations for 2009-2010 are significantly reduced from the previous year: Israel and overseas programming — 25 percent; local agencies and programs — 9 percent (25 percent, offset by an additional allocation for increased occupancy costs); Federation operations — 19 percent; direct service programs and other miscellaneous allocations — 27 percent.
Several major changes to support for MJF direct service programs preceded the formal June allocations proposal. In February, the Federation’s executive committee announced a decision to discontinue funding to the Jewish Chaplaincy Program and the Wisconsin Jewish Conference; to merge the Israel Center and Partnership 2000 programs; and to reorganize The Wisconsin Jewish Chronicle as a monthly publication.
In addition, steps were taken to address the sharp rise in building occupancy costs charged to programs and agencies using Federation-owned space on the Karl Jewish Community Campus, in the new Hillel Student Center for Hillel Milwaukee and in the Helfaer Community Service Building.
The earlier methodology used to calculate these occupancy costs – a five-year rolling average – was effective until this past year, when heavy snowfalls, steeply rising utility costs and greatly increased space occupancy stemming from 2004-2007 community capital campaign expansion contributed to an increase of more than $500,000. The executive committee voted to absorb these costs in the 2009-2010 budget and thus provide additional allocations to individual agencies and programs for these increased occupancy costs. Going forward, the five-year rolling average will no longer be used, and agencies in Federation owned buildings will be charged the projected actual costs each year.
“Our agencies have had to rethink their programs and services and their roles in the community, and we have had to rethink how we can support and fund our agencies based on the economic realities that we face,” said Mitch Moser, co-chair of the Federation’s Community Planning & Allocations committee.
“That rethinking is deep and transformative,” Arbit said.
“This year’s allocations process has forced us all to take a new look at everything we do and how we do it, and that can be very healthy for any community,” said Arbit.
“There is no doubt that a change has taken place: as we begin the 2009-2010 fiscal year, the Milwaukee Jewish community will look different, and we must make do with less.
“But our commitment to Jewish life remains solid and unwavering, and I’ve never been prouder of the Milwaukee Jewish Federation and our Jewish community than I am at this moment,” he said.
Laura Barnard is director of marketing and communications at the Milwaukee Jewish Federation.
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