Episcopal Press and News
Shortfall in Diocese of Los Angeles Forces Significant Budget Cuts
Episcopal News Service. April 24, 1992 [92094]
In what was described as a response to "recession reality," the Diocese of Los Angeles was forced to cut its 1992 budget due to a significant shortfall of pledges from congregations. The cuts were a sign of the continuing financial pinch felt at all levels of the church, particularly for dioceses.
Members of the diocesan council voted on March 18 to cut nearly $290,000 from the 1992 budget when it became clear that several congregations would not be able to meet their pledges.
The cuts included a freeze on wages for diocesan staff and a voluntary 5 percent reduction in the bishop's salary; reduction in spending for all diocesan programs -- in some instances up to 20 percent -- including Asian, Hispanic, and black ministries, Christian education, and the diocesan newspaper; and a 10 percent reduction in the apportionment to the national church.
"The tight figures came as a surprise to us," said Richard Kimball, a member of the budget committee from San Bernadino. "The economy has been so tricky and spotty that it has been very difficult to plan with certainty."
Kimball said that the effects of layoffs in defense industries and the loss of other highly skilled jobs had begun "to trickle up" from the congregational level to the diocese. "Some of these layoffs were not foreseen three or six months ago," he said.
"Obviously we are in very difficult economic times," said Bishop Frederick Borsch, "and our congregations are feeling it like everyone else."
"One of the first things we would probably restore is support of the national church," Kimball said, "because we don't want our current situation to be interpreted as a protest." He said that the recent cuts spread "the pain across the board as much as possible," but that the diocese considers support of the national church a priority. "People are distressed that we are 'bumping up' our problems to the national church," Kimball added.
Diocesan officials pointed out that 1992 apportionment figures in support of the national church are based on a percentage of the net disposable budget income (NBDI) from parochial reports in 1989. Kimball said that the "lag time between 1989 NBDI figures and current reality was the biggest contributing factor" to the current shortfall. "It's unfortunate that the NBDI figures were based on a time when the economy was more robust," he said.
Although several members of the budget committee expressed a desire that the apportionment reflect current realities, Kimball said that the system works both ways: "People only say ouch when the shoe is pinching."
Borsch has expressed hope that the current budget reality would prove to be a "one-year phenomenon." Kimball said that the budget committee will monitor the financial picture and restore funding if the situation changes.