Episcopal Press and News
Executive Council approves draft budget affected by economic realities
Episcopal News Service -- Stockton, California. January 31, 2009 [013109-02]
Mary Frances Schjonberg
On the final day of its three-day meeting here, the Episcopal Church's Executive Council passed a draft budget for the 2010-2012 triennium that reflected the effects of the world's financial crisis.
The draft budget calls for increasing the draw on endowment income from 5 percent to 5.5 percent, deferring debt repayment, freezing church center salaries in 2010, cutting most non-personnel church center costs by 9 percent and slightly reducing personnel costs.
Episcopal Church Treasurer Kurt Barnes told the council January 30 that the world economy has not been in this sort of financial crisis "since the time of the Depression," and thus the council "must take very, very serious action. We are not forgetting the concept of abundance, but we also cannot forget the concept of being good stewards for all those who come after us."
Those actions involved hard choices, according to Barnes and council members. Even increasing the draw on the endowment from 5 percent to 5.5 percent would mean that income line would still be down by about $7 million from the last triennium, Barnes said.
Deferring debt repayment, which primarily involves the cost of the recent remodeling of the Church Center in New York City saves $2.1 million, Executive Council Administration and Finance Committee chair Josephine Hicks told the council, adding that "it pains everyone on A&F to do that."
Another cost-saving measure, the elimination of the budget's line item of 0.7 percent spending for specific Millennium Development Goals spending, drew comment even as it was approved. Advocates of the MDG movement (eight goals for social progress set by the United Nations) have urged countries and organizations to devote 0.7 percent of their spending to programs aimed at achieving the goals. That line item in the last budget amounted to about $924,000.
Hicks told the council the Episcopal Church actually spends "much more than 0.7 percent" on MDG-related programs. She said she worried that people might believe that that amount was all the Episcopal Church spent on MDG work. However, she also said she agreed with concerns voiced by council member Ian Douglas who said he was worried that eliminating the line item might be seen as the Episcopal Church backing away from its commitment to MDG work. "I would beg and plead" that budget presentations make clear exactly how much of its spending goes to MDG-related ministries, Douglas said.
The budget assumes that diocesan giving, the other major source of income, will increase by one percent in 2010 and by two percent in each of the remaining two years of the triennium, Barnes said.
During her closing remarks, Presiding Bishop Katharine Jefferts Schori told the council that she was "distressed" that the budget includes a 2 percent reduction in spending on mission compared to the present triennium and a 10-11 percent increase in administrative costs for the General Convention-related expenses. "It bears some real scrutiny as we go through the rest of the budget process," she said.
The draft budget now goes to the Joint Standing Committee on Program, Budget and Finance (PB&F). Council must present PB&F with a draft budget no less than four months before the next meeting of the General Convention, which convenes in July. PB&F usually revises the council's budget before it proposes the final budget to convention on the eighth legislative day.
More information about the issues involved in formulating the draft budget is available here.
In other action January 31, council:
* Agreed to lend the Episcopal Diocese of San Joaquin as much as $500,000 for use "in their protection of diocesan properties," according to the resolution. Council spent nearly four hours during its time in Stockton in closed session with diocesan leaders learning about the history of the former leadership's alienation from the wider church and the efforts to reorganize the diocese in the months since the majority of the diocese's members left the Episcopal Church.
* Agreed to engage in a strategic-planning process that would assist the council and staff at the Episcopal Church Center in carrying out the priorities of General Convention. The presiding officers were asked to appoint a committee composed of council members, Church Center staff and other Episcopalians to develop a draft ten-year strategic vision and "high level plan" that would be updated periodically. The committee would be assisted by a consultant.
Council member Ted Mollegen, who has been advocating such a process during his term on the council, said strategic planning is "an urgent need" for the church.
"We are at a watershed moment in the Episcopal Church and do not want to lose this moment," the resolution's explanation said. "It is a time that we have the opportunity to become the truly multicultural church about which we dream and we seem poised as a denomination to effectively reach the 'spiritual but not religious' in new ways, but it will require nimbleness to adapt to our rapidly changing social context. We must be focused and intentional to do so. And we don't have a year to wait."
The plan would identify and track "the missional, financial, societal, cultural, and other challenges and opportunities facing The Episcopal Church," consider alternative paths of action and recommend a path, and define measurable indicators of success as well propose how to gather the resources that would be needed to accomplish the plan's goals.
The Executive Council's Congregations in Ministry committee, which proposed the planning process, agreed to find the $95,000 it estimated that the work in 2009 would cost.
* Accepted and commended for implementation a plan called "Creating a Welcoming Presence" as the Episcopal Church's vision and strategy for Latino/Hispanic ministry. The Rev. Canon Anthony Guillén, program officer for Latino/Hispanic Ministries, told the council that the plan is aimed at attracting more Latino/Hispanic people to the church. There are currently 298 Latino/Hispanic congregations among the Episcopal Church's approximately 7,200 congregations. That number has increased from the 42 that existed in 1980, he said. The goal of the plan is to increase awareness of the Episcopal Church among potential Latino/Hispanic congregants to increase the number of congregations by 15 percent in the 2010-2012 triennium and generate growth of 15 percent within existing congregations. Another goal is to develop shared tools and resources.
Diocese of Puerto Rico Bishop David Alvarez urged Guillén and the council to consider how to coordinate the work with Province IX's ministry. He noted that many Latino/Hispanic people in domestic dioceses return to the church's Latino/Hispanic overseas dioceses or have families there who are not Episcopalians.
Presiding Bishop Katharine Jefferts Schori reminded the council that non-Anglos "are the growing part of our demographic."
Guillén said that "much more far-reaching collaboration" among church center staff and the church's committees, commissions, agencies and boards (CCABs) is needed to make the plan a reality. "And, obviously, money," he added.
Council's acceptance of the plan did not include money to pay for implementation. "The plan does not have a lot of oomph without something behind it," Guillén acknowledged.
Coverage of council's January 29 sessions is available here.
Coverage of council's January 30 sessions is available here.
A summary of all resolutions passed during the Stockton meeting follows.
Administration and Finance (A&F)
Set the dividend rate for 2009 for the Domestic and Foreign Missionary Society (DFMS –the legal name of the Episcopal Church) Trust Fund portfolios at $1.02 per share (A&F083).
(A&F084) withdrawn
Approve the use during 2009 of $32,000 of the reserves allocated but unused during 2008 (A&F085).
Approve the draft budget for the Episcopal Church for the 2010-2012 triennium (A&F086).
Establish Trust Fund # 1030 Episcopal Diocese of Lexington – Endowment Fund (A&F087).
Establish Trust Fund # 1031 Episcopal Diocese of Lexington – Domain Fund (A&F088).
Establish Trust Fund # 1032 Episcopal Diocese of Lexington – Discretionary Fund (A&F089).
Establish Trust Fund # 1033 The St. Ives Fund to support non-budgetary legal expenses, income, accumulated appreciation and principal may be used by the DMFS for such legal expenses as determined by the Presiding Bishop, after consultation with the Treasurer, the Vice Presidents of DFMS, and the Chair of Executive Council Standing Committee on Administration and Finance (A&F090).
(A&F091) withdrawn
Authorize up to $300,000 to be taken from short term reserves to facilitate an initial first meeting of all Committees, Commissions, Agencies and Boards (CCABs) in fall 2009 and authorize up to $300,000 to be taken from short term reserves for strategic communication initiatives (A&F092).
Requests presiding officers to appoint a task force, at least two members of which are from Executive Council Standing Committee on Administration and Finance, to conduct a comprehensive review of the human resources practices relating to all employees, contractors and consultants of the DFMS and bring recommendations to the Executive Council by its fall meeting in 2010 (A&F093).
Directs the Episcopal Church to follow covenants and grants accountability procedures with the Office of the Treasurer, in concert with the designated DFMS staff member, to oversee this process (A&F094).
Lend the Episcopal Diocese of San Joaquin not more than $500,000 for use "in their protection of diocesan properties," terms of such loan to be determined in consultation between the diocese and certain officers of the DFMS (A&F095).
Congregations in Ministry (CIM)
Approve $30,000 proposal for anti-racism training for the Convocation of American Churches in Europe (CIM037).
Recognize the Rev. Melford (Bud) Holland "for his impressive ministry and show our appreciation … for [his] distinguished ministry" (CIM039).
Create a strategic planning committee to assist Executive Council and the Church Center in their capacities as being charged with implementing the vision and priorities of General Convention, in developing a draft ten-year strategic vision and high level plan for the Executive Council and the Church Center intended to be subsequently updated periodically, engage a consultant to aid in the work, and commit the committee to find the $95,000 needed for the work in 2009 (CIM040).
Adopt and commend for implementation the report "Creating a Welcoming Presence" as the Episcopal Church's vision and strategy for Latino/Hispanic ministry (CIM041).
International Concerns (INC)
Recognize an extension of the companion diocese relationships between the Diocese of Iowa, the Diocese of Brechin in the Scottish Episcopal Church, and the Diocese of Swaziland in the Anglican Church of Southern Africa until terminated by mutual consent (INC058).
Commend the work of Presiding Bishop Katharine Jefferts Schori and Diocese of Massachusetts Bishop M. Thomas Shaw of the Diocese of Massachusetts "for their efforts to stand in solidarity with Bishop Sebastian Bakare of the Diocese of Harare and the Anglican Church in Zimbabwe as it has suffered under the repression and abuses of human and political rights perpetrated by the government of President Robert Mugabe," join the calls "for fair political representation for all Zimbabwean citizens, in free and open political processes," urge the international community "to insist on an end to the political violence, torture, intimidation, and other abuses of human and political rights undertaken habitually by the Mugabe government," urge Episcopalians "to stand in solidarity with the Anglican Church in Zimbabwe, and all Zimbabwean people by advocacy, education, and continual prayer, in the name of the Prince of Peace, for the peace, healing, and reconciliation of Zimbabwe." (INC059)
National Concerns (NAC)
Review a list of Jubilee Programs (NAC043).
Instruct the treasurer to vote in favor of a variety of shareholder resolutions (NAC-044) at corporate annual meetings.
Acknowledge receipt of the initial report: Response of the Episcopal Church to Hurricane Katrina: Parish, Pastoral, Diocesan, and National Lessons Learned (first of a three-stage policy outlined in Resolution B-011 to develop a strategy for a model missionary initiative, including both evangelism and service, for the Lake Pontchartrain Basin Area) (NAC045).
The Executive Council carries out the programs and policies adopted by the General Convention, according to Canon I.4 (1)(a). The Council is composed of 38 members, 20 of whom (four bishops, four priests or deacons and 12 lay people) are elected by General Convention and 18 (one clergy and one lay) by provincial synods, plus the Presiding Bishop and the president of the House of Deputies.