Economic slump forces churches to cut ministries

When the stock market soared, the worldwide network of United Methodist missionaries thought big.
About $3 million was to go for a hospital in Kazakstan. Another $2 million was budgeted for land mine removal, and money was earmarked for helping U.S. convicts rebuild their lives.
Then the market tumbled, and with it went the bounty from the missionary division's investments. The group has lost about $21 million in 2001, forcing administrators to lay off 45 employees.
"Next year will be one of the worst," said Randolph Nugent, who manages the agency, called the Board of Global Ministries.
Other denominations are feeling squeezed by the recession, too. Money for good works, once plentiful in the 1990s, has been drying up.
Adding to the churches' woes are a steep increase in health insurance costs and a post-Sept. 11 drop in contributions, as the faithful have redirected their giving to victims of the terrorist attacks.
In Boston, that means the Roman Catholic archdiocese is scaling back some programs, although it won't say which ones. Boston and the Erie, Pa., diocese have imposed hiring freezes.
The Presbyterian Church (USA) expects a deficit of about $2.5 million in its $136-million budget next year.
Not all denominations are suffering. The Evangelical Lutheran Church in America saw income rise through Sept. 30, compared with the year-ago period, but that was mainly due to bequests and large gifts.