The JAFI BoG meeting concluded yesterday with a slew of resolutions. More than one Board member shared with me that all the various budget discussions and cutback decisions made for a particularly difficult week. Not the least of it is long existing programs are in the process of disappearing off our communal landscape. While many of these decisions are certainly the correct ones, those of us with ties to a closing program “feel the pain”.

(updated: to include the approved budget resolution JAFI_Budget_June08)

Lost in the shuffle, and we were reminded of this by Richie Pearlstone, is that for eight of the past nine years JAFI has maintained a balanced budget. Additionally, JAFI has been able to retire over $250. million in long-term debt. Both are notable achievements. This, however, did not make the decisions any easier; the problems are real. But also need to be taken in perspective.

Some of the ‘tachelis’ decisions for the coming year include:

• increase income by $8.5 million
• reduce administrative expenses by a further $7.5 million
• cut programs by $13-16 million (the actual resolution figure is a bit confusing)

In keeping with the above, it was also decided that any program, or activity, slated for closure in 2009, will be terminated immediately, subject to existing contractual commitments. Additionally, all new transactions are frozen – at the minimum until the 2009 budget is approved in November. Tough medicine.

As Richie indicated on Sunday, JAFI could ‘afford’ this one year budget shortfall, but for 2009 a balanced budget is needed.

While there is a general consensus that to a certain extent JAFI needs to re-invent itself, they have a storied past that has significantly contributed to both Israel and the wider Jewish world. Hopefully, all of these changes will help ensure a bright future and allow JAFI to refocus its mission and place particular emphasis on core programs including closing the educational gaps here in Israel and the ‘Aliyah by Choice’ initiative.

Related to all the financial discussions taking place was PM Olmert’s Sunday morning speech, and how this may effect Diaspora – Israel relations and funding priorities.

Here are two recent press articles dealing with the proposed initiative:

from yesterday’s Jerusalem Post:

Analysis: Israel’s leaders awaken to a new Jewish world

The official organs of the Jewish Agency are thrilled and unabashedly gratified at the government’s new initiative to start investing in the Diaspora, to “change the paradigm” of the Israel-Diaspora relationship.

The agency issued a statement saying it “salutes” Prime Minister Ehud Olmert for his “vision” in the “historic address” he delivered Sunday to the agency Board of Governors meeting in Jerusalem, where he announced the new initiative.

The gratitude is real. There is palpable relief among agency officials that the government’s new initiative, which could bring hundreds of millions of shekels and much prestige to programs connecting the Diaspora and Israel in the coming years, is being conducted together with the agency, which is seen by an uncomfortably large number of Jews as a politicized and outdated leviathan.

from this morning’s Haaretz:

Israel-Diaspora relations in the post-Olmert era: Uncertainty abounds

Two days after Prime Minister Ehud Olmert’s “paradigm changing” speech on the relationship between Israel and the Diaspora, members of the Jewish Agency board of governors were still unsure how the new direction would actually manifest itself, whether the agency would have sufficient funding, and more to the point, what its are chances if Olmert’s days as prime minister are numbered.

Two days after Prime Minister Ehud Olmert’s “paradigm changing” speech on the relationship between Israel and the Diaspora, members of the Jewish Agency board of governors were still unsure how the new direction would actually manifest itself, whether the agency would have sufficient funding, and more to the point, what its are chances if Olmert’s days as prime minister are numbered.