Episcopal Press and News
Standing Committee Members Think New Funding Formula May Be Implemented Gradually
Episcopal News Service. April 21, 1994 [94082]
Jerry Hames, Editor of Episcopal Life
As dioceses across the country react to Executive Council proposals for a radical change in the funding formula of national church program and administration, members of the committee responsible for proposing the change at General Convention feel that dioceses may need time to adjust to the proposals.
Members of the Joint Standing Committee on Program, Budget and Finance (PB&F), meeting at the Episcopal Church Center in New York, April 15-17, considered whether refinements are needed in a proposed new funding formula. Some members contended that dioceses which face increased askings will need time to "step up" in gradual stages to their new level of support for the national budget.
In order to offset a potentially disastrous shortfall to the national budget, committee members said they may have to consider a "step down" plan, by which the 76 dioceses that will pay less under the proposed formula, would do so progressively over a period of years.
The proposed funding formula for the national church would be based on diocesan income, including unrestricted investment income, instead of parish income. Under the new proposal, national church revenue would be reduced by more than $7.9 million, a total "asking" of $28,354,657 in 1995.
Despite the overall reduction in the budget, the proposed formula would mean that 23 dioceses -- mostly small dioceses in the West and South -- will be faced with increases, some of them substantial.
Representatives of some of these dioceses have already said they would have difficulty meeting the new formula and want a plan by which they could move gradually toward their full asking.
Although they have received a number of protests from Episcopalians who are angry about the loss of some programs and ministries as a result of the proposed budget, members of PB&F took no action to amend or change Executive Council's budget proposals based on its priorities. Instead, it will wait until it receives resolutions and submissions at hearings in Provinces and at General Convention before considering changes.
PB&F received the first draft of the Budget Handbook that will be distributed in May to all bishops and deputies elected to the 71st General Convention in Indianapolis August 24-September 2. The handbook, based on priorities set by Executive Council after hearings in nearly all dioceses, is the basis upon which the new budget will be set.
Committee members said that they want to avoid a situation like the one at the 1991 convention when, after bishops and deputies approved the budget, many dioceses made cuts in their support to the national church, resulting in the elimination of programs and layoffs of staff in 1991 and 1993.
Treasurer Ellen Cooke reported that the number of national staff will have been reduced from 299 in 1991 to 208 by the time General Convention convenes in Indianapolis.