By canon, the Diocesan Council holds a series of just-completed budget hearings after which council prepares and circulates a preliminary budget for study by the congregations. After the churches submit their pledges of support, the Diocesan Council finalizes a proposed ministry budget and sends it to the Diocesan Convention for discernment and approval.
Almost every area of the preliminary budget reduces spending compared to previous budgets. Significant reductions in spending will be realized by the termination of five staff positions that will not be carried into next year and savings in the areas of ministry that those positions represented.
A $70,000 reduction in the support for the broader Episcopal Church is included in the proposed budget along with a recommendation to reduce social services ministry grants by $45,000. Diocesan Convention approved a line item of $100,000 for those grants in 2009, but Diocesan Council had already reduced that figure to $75,000 when budget adjustments were made in May.
The preliminary draft budget also estimates a $200,000 reduction in the tithes and offerings from congregations.
The amount of money to be utilized for operations is based on a spending policy consistent with the long-term investment objective of the Growth & Income Fund where the Extended Ministries Funds are currently invested, explained Diocesan Treasurer Pam Horiszny. No additional withdrawls from the EMF funds would be necessary to create a balanced budget for 2010.
“We have reduced spending and lowered what we are expecting in tithes and offerings,” said Gibbs. “I clearly heard that [additional spending] is not going to come from the EMF unless and until there is a clear policy on the use of those funds. I don’t think Convention is convinced that we shouldn’t spend it, but I do believe that they need a plan.
“I would not feel comfortable, personally, going to Convention with a budget that didn’t have a zero for operating budget deficit,” he said.
Several members of council questioned the reduction in support for the national/international Episcopal Church, from the requested 21 percent to 18 percent. Bishop Wendell Gibbs explained that he anticipates the reduction to be a temporary measure to balance the diocesan budget.
“What can we say about priorities at the [April 18] special convention,” asked Councilmember Jane Johnson. “What can we say to people who came and developed priorities and now those areas have been cut?”
“We can say we have limited resources,” replied Bishop Gibbs, reminding council that some overarching areas of ministry were completely eliminated from the diocesan operations. “Everything in this budget was cut. Some things were clearly cut before the Convention [and] it is not my expectation that any of those will come back. The painful realization is ‘what can we sustain with what we have to give to ministry?”
“If someone looked at the 2010 budget, without the hindsight of other budgets, they could see the priorities of the diocese,” said Horiszny. “It is youth and young adult ministries and education.”
The preliminary draft budget for 2010 will be circulated to congregations. Diocesan Council will resume its preparation of a proposed 2010 budget at its September 22 meeting.
See story on Special Convention HERE.
See Special Convention priorities HERE.
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Detroit, MI