TABLE OF CONTENTS

Page

TABLE OF CONTENTS

A letter from PB&FPage

Enabling resolution

Vision Statement

Budget Report

Summary of Actions Taken

Budget summary

Budget Narrative/ Detail

Appendix

A.- Resolution disposition table

B.- Diocesan Financial/ Asking Information

Committee Roster

A letter from PB&F

Enabling resolution 1-2

Vision Statement -3

Budget Report 4-6

Summary of Actions Taken 7-9

Budget Narrative/ Detail10-38

Appendix

  1. - Diocesan Financial/ Asking Information
  2. - Resolution disposition table

Contact List

Committee Roster

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The General Convention of The Episcopal Church

October 12, 2000

Dear Bishops and Deputies,

We are pleased to present the Budget for the Episcopal Church for the 2001-2003 triennium. In addition to the traditional printed version, the budget will also be published on our web site ( where any subsequent revisions as well as comparisons to actual results will be published periodically as needed. The enclosed package includes the commentary of the Program, Budget and Finance Committee and the funding resolution that was passed by General Convention.

The process followed in the preparation of the budget for the coming triennium was based upon a re-examination and reaffirmation of the vision for the church and the common mission to which we are called. Activities and proposed spending were evaluated in terms of their importance to the success of our mission. As has been the case for many triennia, the requests for funding far exceeded the funds available. The budget proposed to, and adopted by, General Convention incorporates as much as possible of what was agreed to by Convention. Indeed, the budget is premised upon the draw down of as much as $1.9 million from our endowment to support new Jubilee initiatives.

The budget is prepared and approved well in advance of the period to which it applies. With the passage of time changes occur in the economy which affect not only our investment income, but also the ability of dioceses to provide the necessary funding. In addition, our mission strategies and tactics become clearer and therefore more specific as we move closer to the time of their implementation. As has been done in the past to accommodate these changes, each year during the triennium an annual budget, based upon the budget approved at General Convention, is presented to Executive Council for review and approval. Each such budget will be available on our web site and printed copies will be made available upon request. At all times, your comments are welcomed and encouraged.

Finally, we pray that each diocese will continue to meet, exceed, or make significant efforts to strive toward meeting their full asking. Together we can continue to make the budget ever more reflective of God’s call to us.

Faithfully,

Stephen C. DugganBonnie Anderson

TreasurerChair, Joint Standing Committee on

Program Budget and Finance

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815 Second Avenue • new york, ny • 10017

Phone: (212) 922-5179or (800) 334-7626 • Fax: (212) 867-0395

LETTER FROM CHAIR AND TREASURER

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1

A136

(Text Still Being Reviewed)from Jennifer2000 RESOLUTION FINAL TEXT - PENDING PUBLICATION OF THE JOURNAL

A136

Resolved, the House of Bishops concurring, That the Budget for the Episcopal Church for the next triennium be adopted as set forth:

1.0The Budget for the Episcopal Church for the period January 1, 2001 through December 31, 2003, which shall be a unified budget including Canonical, Corporate (administrative support), and Program (mission) portions, is adopted at a total of $ 138,353,000.

1.1The Canonical Portion, providing for the contingent expenses of the General Convention, the stipend of the Presiding Bishop and the expenses of that office, the expenses of the President of the House of Deputies, and Church Pension Fund assessments is adopted at a total of $ 26,348,000 as follows:

For the year 2001 $ 7,733,000

For the year 2002 $ 8,336,000

For the year 2003 $ 10,279,000

1.2The Corporate (Administrative Support) portion, providing for the requirements for the administrative support of the Domestic & Foreign Missionary Society offices, is adopted at a total of $ 30,322,000 as follows:

For the year 2001 $ 9,798,000

For the year 2002 $ 10,083,000

For the year 2003 $ 10,441,000

2.3The Program (Mission) portion, providing for support for the mission and ministry (restricted and unrestricted of the Church) is adopted at a total of $ 81,683,000 as follows:

For the year 2001 $ 26,912,000

For the year 2002 $ 27,307,000

For the year 2003 $ 27,464,000

2.0The funding policy for the period January 1, 2001 through December 31, 2003 is adopted, based on a single Asking (apportioned share) of the dioceses. After a $100,000 exemption from total income, a single asking shall be applied at a flat rate of 21% of the balance of income to the diocese, reported in the diocesan financial statements for the year two years prior to the year to which the pledge is applied [ e.g.: 2001 Askings (apportioned share) are to be based on 1999 actual income figures]. “Income” includes 1) all congregational giving to the diocese, 2) all unrestricted investment and endowment income to the diocese, 3) restricted investment and endowment income to the diocese which covers costs in the operating budget, and 4) other earnings from investments or enterprises. It is intended that income shall include revenues that fund normal operating and program expenses of the dioceses. It is not intended to include pass-through income that is used for expenses for programming that are simply administered by the dioceses, or that would not be otherwise funded by contributions from parishes or out of diocesan investment income.

2.1That the Episcopal Church stewardship standard for congregations and dioceses of 50/50 giving within and beyond themselves is reaffirmed and is to be reflected in the following ways: those dioceses currently giving at levels above 21% maintain or increase those levels; those dioceses currently not giving at the 21% level increase their giving to meet (or work toward) the 21% level.

2.2For the budgetary period income from diocesan commitments, totaling $ 85,757,000 is anticipated as follows:

For the year 2001 $ 27,751,000

For the year 2002 $ 28,577,000

For the year 2003 $ 29,429,000

2.3For the budgetary period 2001-2003, payment by the dioceses of the Askings (apportioned share) shall be made in twelve equal monthly payments.

2000 RESOLUTION FINAL TEXT - PENDING PUBLICATION OF THE JOURNAL

A136 (Continued)

2.4All additional income, other than from the Askings (apportioned share) of the dioceses, totaling

$52,596,000 is projected as follows:

For the year 2001 $ 16,812,000

For the year 2002 $ 17,308,000

For the year 2003 $ 18,476,000

2.4 (a)In addition to the income provided by the currently authorized distribution from endowment, an amount not to exceed $1,909,000 may be drawn from unrestricted endowment in order to fully fund the budget for 2001-2003.

(b)This authorization covers the current shortfall that results from dioceses not responding to their full asking, and those dioceses are challenged to do so in the spirit of Jubilee.

2.5A General Ordination exam fee is hereby authorized, which fees shall be added to the funding from dioceses and applied to the expenses of examination as appropriated in the budget. A candidate for Holy Orders eligible for examination and so certified by the diocesan bishop shall not be disqualified for examination because the fee has not been paid.

2.6General Convention registration and exhibitors fees are hereby authorized, which fees shall be added to the funding from dioceses and applied to the expenses of the 2003 General Convention, and for no other purpose.

3.0In the exercise of their respective authorities, the Executive Council of the General Convention and the Joint Standing Committee on Program, Budget and Finance shall be subject to the following policies:

3.1Each year, the Executive Council, with the advice of the Joint Standing Committee on Program, Budget and Finance, shall adjust the budget to the assured income of the Executive Council so as to carry out the Budget for the Episcopal Church for that year on a balanced budget basis.

3.2The fiscal year shall begin January 1.

3.3If in any year the total anticipated income for budget support is less than the amount required to support the budget approved by the General Convention, the Canonically required expenditures within the Budget for the Episcopal Church shall have funding priority over any other budget areas.

3.4Any unexpended general funds in a fiscal year may be treated as revenue available for budgetary purposes in ensuing year(s), and shall be used for no other purposes.

3.5Undesignated bequests and legacies received during the budgetary period shall be set aside in the general endowment fund of which only the income shall be used for the general purposes of the Society.

3.6Designated bequests and legacies received during the budgetary period shall be set aside in specific funds of which only the income shall be used for the purposes so designated; and be it further,

3.7Resolved, that subsequent editions of the Report and Proposal of the Presiding Bishop and Executive Council to the General Convention contain the following information for each year of the preceding triennium:

  • A description of the actual income and expenditures of the DFMS, relating the expenditures to the Church’s priorities with accompanying narrative,
  • Endowment balance and total investment return, with accompanying narrative, and be it further

Resolved, that this report be posted on the DFMS website when it is released to the Bishops and Deputies.

Theme and Vision

Executive Council, in response to a request by PB&F, adopted a group of budget principles that were used to develop the Budget that Executive Council proposed in the Report and Proposal (these principles are set out at p. 6 of the Report and Proposal)

PB&F, mindful of the views of bishops and deputies, has amplified Executive Council’s budget principles and has conducted its work with this vision for the Church:

That we shall live as people of Jubilee with a transformed consciousness of liberation, and as the community of the new covenant, in accordance with the catechism of the Book of Common Prayer, and that we shall carry out joyfully our mission of restoring all people to unity with God and each other in Christ.

This vision led the Committee to adopt the following imperatives to guide its work:

promoting diversity – inviting, teaching and encouraging all sorts, conditions and ages of men, women and children to fully participate in the life of the Church, respecting the dignity of every human being and striving for justice and peace among all people;

making disciples and apostles – inviting, teaching, deploying and nurturing members as leaders at every level of the Church to deepen their life of faith and understand themselves as disciples growing toward maturity in Christ;

enhancing communications for the 21st Century – using available and developing new technology to enhance the work of the Church in response to the Gospel.

We affirm our continuing work in the following two areas:

strengthening the partnership of the Episcopal Church within the Anglican Communion in proclaiming God’s Kingdom throughout the world;

encouraging ecumenical relationships and dialogues with our Christian brothers and sisters and with interfaith groups.

Should revenues exceed the budgeted amount, it is expected that Executive Council will take these imperatives into account in allocating any such excess.

Overview of the Proposed Budget

PB&F worked diligently to fulfill these mission imperatives, but it must work within the available funding to present a balanced budget. In other words, we began with a mission-driven budget that would reflect all the actions of General Convention that would require funding. Unfortunately, there is not enough money actually received from the askings to meet such a budget.

In order to carry out all of the mission activities for which funding was requested at Convention, revenues of approximately $ 154,000,000 would be needed. If every diocese that is now giving below the asking formula of 21 % were to achieve that level of giving, we would make significant progress in funding many of these activities. In fact, we have not reached that level of support as yet.

Figure I

Because of the great commitment to our common mission and their ability to do so, thirteen dioceses are giving more than is asked by the 21% formula, and forty-nine dioceses are giving at the 21% asking level. There are, however, thirty-seven dioceses that are currently giving below the 21 % asking (see appendix A).

FIGURE II

The attached proposal is funded as follows:


FIGURE III

The expense side of the proposed Budget is divided into conventional categories. One is Canonical – expenses from the nature and structure of the church. Another is Corporate – the administrative expenses. The rest is grouped under the category called Mission.

FIGURE IV

Two things should be clearly understood, however. First, the staff at the Church Center does not “do” mission; its efforts are entirely directed toward supporting the mission activities of congregations, dioceses, provinces, and other Episcopal (and ecumenical and interfaith) organizations. Second, although the budget is divided into the categories listed above, this is a matter of administrative convenience; in fact, all expenditures in the Budget can fairly be described as supporting mission.

SUMMARY OF ACTIONS TAKEN

Here is how this Budget proposal differs from that in The Report and Proposal:

Five Six new initiatives are funded in the Canonical portion of the Budget:

  1. The establishment of a task force on disciplinary policy and procedure pertaining to Title IV (A028) which could help this church save money as non-litigating disciplinary models are put forward - $60,000.
  1. A full review of Title III canons on ministry (A073), to be undertaken by the Standing Commission on Ministry Development, to gather data about the needs and shapes of ministry in our church - $26,000.
  1. A prison ministry task force (B001) in the office of the Bishop of the Armed Services, Health Care and Prison Ministries - $90,000.
  1. Creative strategizing for evangelism (A034) under the aegis of the Standing Commission on Domestic Mission and Evangelism - $75,000 in the Executive Council budget.
  1. To allow progress on discrete projects and careful listening across the Church (A066) for the renewal, enrichment, and revision of our common worship - $75,000.
  1. The Executive Council is also asked to plan, in conjunction with the Diocese of Haiti and the Dominican Republic, for the amelioration of the exploitation of immigrants and refugees on the Haitian-Dominican border (A010; $30,000).

Also, all requests by Committees, Commissions, Agencies and Boards to fund their activities are included in full. An additional $53,000 was required.

The General Convention Office line item is reduced by $240,000, and half that amount is added to the House of Deputies line item to cover assistance to the President of the House of Deputies.

The total changes increase the Canonical portion of the Budget by a net of $259289,000.

No changes are made in the Corporate (administrative support) portion of the Budget.

The following changes were made in the Mission portion of the Budget:

  1. Planning and Evaluation is closed as a separate program section, for a saving of $149,000. (This function will occur within each separate program area.)

SUMMARY OF ACTIONS TAKEN (continued)

  1. This budget allocates $250,000 for the Episcopal Youth Corps for servant ministry throughout the Anglican Communion; the Corps will be housed within the VFM (Volunteers for Mission) section, with consultation and assistance from the Ministry with Young People cluster. The funding is included under Mission Personnel - $250,000.

3.4.In Overseas Partners & Covenants, there is an additional cost of $96,000 for the triennium in order to restructure covenant payments to Mexico.

  1. 5. In Domestic Appropriations, the budget amount for Historically Black Colleges, which demonstrates the Church’s commitment to our historic mission for higher education for African Americans and a response to broadly supported requests for additional funding, is increased by $1,200,000.
  1. In Domestic Missionary Partners, although no increase is included, the dioceses receiving base budget support are: Idaho, Eastern Oregon and Western Kansas.
  1. In Native American Block Grants, although no increase is included, funds for base budget support are for: North Dakota, South Dakota, Alaska, and Navajoland.

Congregational Ministries (CM) will continue to address the needs and issues of women’s ministries and various ethnic ministries including Asian, Black, Hispanic and Native American concerns. Increased attention will be given to adult leadership development, church growth, diversity, worship, outreach and inclusiveness.

Congregational Ministries will continue to strengthen the developing collaborative partnership with dioceses, provinces and networks and will provide team support for production of appropriate resources for the following initiatives as well as new materials for existing programs. CM will also:

  • Implement GC 2000’s call for programmatic support for the Alleluia Fund and stewardship development across the church.
  • Address the unique needs of Province IX for program development by working in cooperation with exploring the establishment of a parallel congregational ministries team. The team would assist in developing appropriate materials for training in ministry areas such as stewardship, evangelism, youth, and women in support of lay discipleship.
  • Continue to develop materials for racial, ethnic and generational stewardship.
  • Continue to partner with the Domestic Missionary Partners, a coalition of dioceses including many of those with Native American ministries and dioceses receiving base budget support.

SUMMARY OF ACTIONS TAKEN (continued)

  • Continue relationships with ministry development networks including Living Stones, New Directions and Solo Flights.
  • Further ministry development with National Episcopal Health Ministries, Episcopal Appalachian Ministries, Episcopal Migrant Ministries, Episcopal Conference for the Deaf, the National Episcopal AIDS Coalition and Episcopal Society for Ministry on Aging.
  • Implement a reserve fund for the 20/20 initiative following results of an Executive Council study. $200,000
  • Continue to move towards database driven electronic communication encouraging all networks, ministries, and dioceses to move towards cost effective communication methods.
  1. This budget also allocates $22,500 to increase congregational development and leadership training to the deaf and the aging. In addition, grant funds for ITTI (Institute of Theological Training for Indigenous Peoples) are transferred to Domestic Appropriations.
  1. Peace and Justice Ministries will continue advancement of ecumenical work in Social Responsibility in Investments (SRI). In response to the will of GC 2000, will increase intentional anti-racism training for greater numbers in the church, funding that work through this cluster.

11.The Executive Council is also asked to plan, in conjunction with the Diocese of Haiti and the Dominican Republic, for the amelioration of the exploitation of immigrants and refugees on the Haitian-Dominican border (A010; $30,000).