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4

Dollar Drop

Continuing slide has implications
for Jewish Agency for Israel.

Jacob Berkman

Jewish Telegraphic Agency

New York

F

acing a $20 million budget
deficit for 2008, the Jewish
Agency for Israel is consider-
ing some major organizational chang-
es that could lead to a revamping of its
aliyah operations.
Responding to criticism of its
bureaucracy as bloated and to the
changing nature of immigration to
Israel, the agency launched a multi-
year strategic planning process in
2004 to streamline operations.
The plan also called for diversifying
the agency's revenue sources.
But the U.S. dollar's decline against
the Israeli shekel has brought new
urgency to the strategic changes, and
this month agency officials proposed
making major structural changes to
the organization.
Last week, the agency's director-
general, Moshe Vigdor, proposed split-
ting the organization into two opera-
tions: one in Israel and one in the
diaspora, with the aliyah department
being folded into one or the other or
both of the new departments.
Vigdor also spoke of changing the
agency's focus to encouraging aliyah
of choice, since aliyah of necessity
practically has run its course, officials
said.
"The dollar effect is like this: If you
are moving toward structural changes
and you realize you have serious bud-
getary concerns coming over the next
one, two or three years, you don't want
to make smaller, piecemeal cuts:' said
the Jewish Agency's North American
spokesman, Jacob Dallal."You want
to do it more holistically. It is a good
time to look at structural changes:'
When parts of Vigdor's plan were
portrayed in the Israeli media as a
step toward reducing the agency's
focus on aliyah, Jewish Agency lead-
ers rushed to issue a letter to their
board of governors assuring them that
immigration would remain one of the
Jewish Agency's core principles.
"We would like to emphasize that
the Aliyah Department will not be

closed:' agency chairman Ze'ev Bielski
and president Richie Pearlstone wrote.
"The department's mission, which is
no less relevant and important today
as it was in the past, and perhaps even
more so today, will continue to be the
spearhead of our actions. Promoting
aliyah is our top priority"
Rather, the leaders explained, the
changing nature of aliyah and the
growing shekel-dollar gap were forc-
ing the agency to explore new ways to
position itself to promote immigration
effectively and efficiently.
Vigdor's suggestion constituted only
one proposal, officials stressed, with
others to follow.
"Frankly, the professionals are
still trying to come up with other
options:' said the co-chairman of the
Jewish Agency's aliyah and absorp-
tion department, Jay Sarver. Since last
April, the dollar has dropped to 3.5
shekels from 4.2 shekels.
The Jewish Agency raises most of
its $314 million budget in dollars but
spends mostly in shekels or Russian
rubles, so the agency estimates it will
face a $20 million shortfall this year.
The Jewish Agency is funded pri-
marily by the North American Jewish
federation system, Keren Hayesod in
Europe and grants in excess of $40
million per year from the U.S. govern-
ment.
Though there has been no sig-
nificant change in the amount the
agency spends on aliyah — this year,
$109 million is allocated to aliyah,
compared to $113 million in 2007
— agency officials have suggested
that the shifting nature of aliyah from
immigration of necessity to immi-
gration of choice could prompt the
agency to make some changes.
Currently the aliyah department
spends money on recruiting immi-
grants, finding them jobs and assist-
ing in their absorption.
As mass immigration to Israel of
Jews from the former Soviet Union
and Ethiopia ends and aliyah from
elsewhere in the diaspora slows, agen-
cy officials say the organization must
figure out new ways to bolster aliyah
of choice.

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April 3 • 2008

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