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Serial: |
AC04-B01-01 |
PEP Argument Briefing Paper
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Title: |
Shifting
Priorities in 2005 Budget
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Applicable to: |
2005
Diocesan Budget |
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Author: |
Joan
R. Gundersen |
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Date: |
10/26/2004 |
The
proposed budget for 2005 shows a projected decrease in income from the
convention-approved budget of 2004, although approximately $27,000 more than
the “revised” budget approved after convention last year. A change in budget
priorities, however, is evident, with much less money going to local outreach
and missions and money being reallocated from Episcopal Church programs to
network or international programs. Apparently, staff compensation increases are
regularly distributed after convention and the budget revised to reflect them.
More substantial changes were made this year, however. (No “revised” 2003
budget was presented to the convention last year.)
·
The original 2004 diocesan budget was
built on the assumption that the diocese would receive funding from new
parishes joining the diocese from outside diocesan bounds. This did not happen,
and the budget was revised downward to reflect lower income. The revised budget
made use of a one-time carryover from 2003 of $93,500, which obviously was not
available to the diocese this year. The 2005 budget projects basically flat
income except for a $26,000 increase in assessments from parishes. Increases in
some budget lines thus require substantial cuts in others. The expenditure side
reallocates funds by cutting the Congregational Mission and Transformational Networks
areas—both of which distribute funds locally—and increasing the money spent on
the Office of the Bishop.
·
On a macro level, the cuts look
reasonable because the diocese is still budgeting more in these areas than it
spent in 2003 (i.e., two years ago). However, when one looks at the specifics,
a pattern emerges. Although Congregational Mission receives a $60,898 cut
overall, it masks a pay increase done quietly after convention last year for
Canon Hays. The “revised” budget for 2004 (not the one seen at convention)
included an $8,000 compensation increase (salary and benefits) for Canon Hays.
This increase is scaled back (probably based on actual spending in 2004), so
that the budget for 2005 shows only a $4,400 increase over the original 2004
budget and a decrease of $3,550 from the revised budget. Since the cuts come in
benefit costs, this cut does not affect the Canon’s take home. The Canon’s
secretary also receives a slight increase driven by rising costs of several
benefits and the new overtime laws. What is affected is actual mission. The
budget zeroes out the support for a youth minister at St. Stephen’s
·
The Tranformational Networks budget is
reduced by almost $80,000 over the revised budget from last year and is $40,000
below the original 2004 budget. Bishop Scriven’s salary is assigned to this
section of the budget. Like Canon Hays, the “revised” budget prepared after
convention gave Bishop Scriven a pay increase of about $8,000. The 2005 budget
holds the compensation basically level (with about a $300 decrease due to a
substantial drop in life insurance costs). Clergy conference also receives a
$5,000 increase. The “revised” budget for 2004 managed to add $25,000 for the
New Priest Initiative, while cutting overall. This sum is now cut back to
$15,000 in the 2005 budget. The biggest decrease (over $70,000) was achieved by
eliminating the Development Director. A number of programs received increases
in this category, including the commission on racism, hospital ministry, and
expenses associated with ordinations. However, Education for Ministry, though
not a large item, has no diocesan funding for next year.
·
The category of “Contributions Beyond the
Diocese” appears at the macro level to be generally stable (with a $3,000
increase, or about 1%). However, support for the Lambeth 0.7% solution is
eliminated (perhaps a reason to have placed the resolution supporting this
expenditure in the ‘”let’s not talk about it” group of resolutions) and the
apparently corresponding funds are marked as “undesignated.” This is a $12,000
item designated only for “international” purposes. The Episcopal Church
received no budgeted funds from the diocese last year, and the same is true
again this year.
·
The Office of the Bishop again appears to
be a stable budget item if one compares the macro level “revised” 2004 budget
with the 2005 budget. Once again, the major change came between the 2004
convention budget and the “revised” budget. Compensation increases for the
Bishop ($7,000), bishop’s secretary ($3,000), and Director of Communications
($3,000) were made in the 2004 revision. The Director of Communications is
receiving a $2,000 increase over the “revised” budget. Lower and shifting of
benefit costs for personnel results in those categories making it appear that
there is a slight decrease in personnel cost. The major savings (nearly $10,000),
however, was achieved through elimination of the Bishop’s clerk position. Costs
for production of Trinity and support for the Web site are up; no
funding is indicated for Now. This increases the
Communications/Publications portion of the Office of the Bishop budget by over
$10,000.
·
The Office of Administration budget is
dominated by personnel costs and includes compensation for Nancy Norton, her
secretary, the accountant, receptionist, and archivist. Office costs are mostly
for office supplies and copying, archive supplies, building rent, and
technology. The pattern seen elsewhere is apparent here as well, with increases
in compensation done almost entirely during the 2004 budget revision. Office
costs are also shown as increasing by $14,000. Half of this is a rent increase
for the