But treasurer Hagai Meirom vows none of agency's flagship activities will be harmed due to cutbacks.
By GREER FAY CASHMANBielski 224.88(photo credit: Ariel Jerozolimski)
The absence of sandwiches or cookies at the Jewish Agency's news conference on Wednesday was part of its new cost-cutting efficiency measures in which the budget for 2009 has been slashed by $45 million.
There will be staff reductions, especially in the former Soviet Union, the United States and South America, with roving emissaries serving in more than one capacity and other staff also taking on additional work.
The agency's strategy appears to be based on a policy of hoping for the best but preparing for the worst. To the surprise of the agency's leadership, pledges made by some of the traditional donors in the US and the UK have not only reflected the ongoing commitments of those donors, but in some cases have actually increased, despite the financial crisis.
Contributions by the Jewish Federation of New York, noted agency chairman Zeev Bielski, were 2 percent higher for 2009 than for 2008, and those from the UK were 8% higher.
"I ask myself," he said, "how, despite the situation, people maintain their historic commitment to Israel. I'm sure it won't happen everywhere."
Yet for all that, Bielski expressed confidence in the abilities of major agency partners United Jewish Communities in North America and Keren Hayesod/United Israel Appeal in the rest of the world to continue to provide the funds needed for programs and projects.
Where necessary, the agency will pare down, said its Treasurer Hagai Meirom, citing as an example the projected closure of several immigrant absorption centers.
However, none of the agency's flagship activities would be harmed, he promised.
What made deciding on cutbacks in specific areas difficult, Meirom said, was the fluctuating rate of exchange. The agency gets the bulk of its donations in US dollars, which are then converted into shekels. While the dollar level of contributions remained stable, he said, the strength of the shekel against the dollar resulted in far fewer shekels than in the past.
"NIS 150m. is a lot of money," he observed when noting the loss in shekel terms resulting from the low exchange rate.
Chief Financial Officer Yaron Neudorfer also pointed to the volatile exchange rate as an obstacle to budgetary planning, adding that if the shekel continued to rise as it had over the past week, a provisional fund would be created to deal with emergency issues.
Most of the incoming funds are received by the end of the year, he said, and the extent to which pledges will be honored will enable budgetary planners to operate in a more informed position.
Pressed as to how many agency employees would be fired, director-general Moshe Vigdor bridled, saying the agency was not thinking of wholesale dismissals. Agency employees have a sense of mission he said, and therefore had to be treated in the most humane manner. Most of the people leaving were already on the verge of retiring or approaching pension age, Vigdor said, and the conditions of their leaving had been coordinated with the cooperation of the union.
The agency had been reducing its staff long before the economic crisis, he said, observing that whereas there had been 821 tenured employees in 2003, there are currently 678.
Bielski, a former long-time mayor of Ra'anana who worked long and hard to help Tzipi Livni win last month's Kadima primary, has been rumored as a possible minister in her government if Kadima wins the national elections. He did not deny that he was pondering a return to politics, but said he had not made a final decision. He would do so within the next two weeks, he said, in coordination with his agency colleagues and the Board of Governors.
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