2. 2005 Budget
(a) The framework of the budget for operating activities of the Jewish Agency for Israel for the Fiscal Year January 1, 2005 through December 31, 2005, as presented in the proposed budget attached hereto, is in the aggregate amount of $290M for unrestricted activities, $4.5M of which is to be transferred to reserve budget lines under an Executive resolution of June 28, 2005.
(b) The framework for the JAFI validated unfunded needs is $78.4M and the budget framework for facilitated activities is $50M. Contracts related to JAFI designated projects will be implemented only upon the receipt of funding commitment or actual revenue.
(c) The Director General is authorized to approve payments due to employees' retirements, above the amounts budgeted in Fiscal Year 2005. The Director-General shall exercise this authority subject to the provisions of Article VI.A.2.(c) of the By-Laws.
2. The framework of the budget for development and financing activities of the Jewish Agency for Israel for the Fiscal Year, as presented in the proposed budget attached hereto, is in the aggregate amount of $18.155M for unrestricted development activities, $25.83M for designated development activities and $1M for unrestricted financing activities.
3. The Jewish Agency for Israel may, during the Fiscal Year, renew existing Financial Commitments which shall mature during the fiscal year, and borrow additional sums as interim financing, so that at the end of the Fiscal Year the accumulated deficit will not exceed the total accumulated deficit at the beginning of the year.
"Financial Commitment" shall mean any loan, guarantee, indemnity or any other financial transaction and any document evidencing or constituting such financial commitment.
B. Budget for the Falashmura Project
Whereas on January 31, 2005, the Cabinet Committee headed by the Prime Minister, with participation of Government Ministers, the Chairperson of the JAFI Executive and others, decided that all the Falashmura remaining in Ethiopia (according to the statistics approved by the Ministry of the Interior, based on criteria set by the Cabinet in February 2003) should be brought to Israel by the end of 2007, meaning a doubling of the rate of aliya from 300 olim a month to 600 olim a month; and
Whereas it was decided at the above meeting that JAFI will assume responsibility for the camps in Ethiopia; and
Whereas the Government expects the participation of the Jewish world in financing the Project; and
Whereas at the beginning of June, 2005, the Board of Trustees of the UJC decided to launch a special campaign (herein: "the Special Campaign"), out of which $100M would be used for the Falashmura Project; and
Whereas out of the above $100M, no less than $63M. has been designated for JAFI's activities ($23M for pre-aliyah activities and airfare and $40M for absorption centers);
Therefore it is hereby resolved:
1. JAFI will manage the Project as a separate multi-year budget line, to be operated against revenues received from two sources:
(a) the core budget as planned for the current 300 olim per month in a multi-year total amount of $60M through the end of 2007.
(b) the revenues from the Special Campaign in a multi-year total amount of $63M.
2. The budget of the Project for the period starting July 1, 2005 through the end of Fiscal Year 2005 is $16M, out of which $8.6M shall come from revenues of the Special Campaign.
3. The Project will be managed through a multi-year separate budget line to be balanced by the end of the Project.
4. Subject to the provisions of Section A 3 above, JAFI may implement interim financing until such time as revenue from the Special Campaign is received, provided that the costs of such interim financing will be added to the overall costs of the Project.
C. Masa Project Deficit in the 2005 Budget Year
Whereas the Masa Project is budgeted within the Department for Jewish – Zionist Education for the 2005 Fiscal Year in the amount of $7M, out of which $2.5M is core budget and $4.5M is elective; and
Whereas the amount to be actually raised in the 2005 Fiscal Year for the Project through designated funds, is at yet unknown; and
Whereas in light of the importance to JAFI of running the Project regardless of revenues from designated funds, in an amount of $7M in the 2005 Fiscal Year;
Therefore it is hereby resolved:
1. The Department for Jewish – Zionist Education and the Finance Department may use up to $7M for the Masa Project in the 2005 Fiscal Year, regardless of the actual revenues from designated funds.
2. Should the actual revenue from designated funds for this Project in the 2005 Fiscal Year be less than $4.5M, the Department for Jewish –Zionist Education shall reduce its core budget for other programs in the course of the next three years, in order to cover this difference between the $4.5M elective budget and the actual revenue from designated funds.