The Episcopal New Yorker |

By the REV. JERRY KEUCHER

At the beginning of the Budget and Finance Committee’s work, the Rev. Michael Phillips, chairperson,
reminded the group that an organization depends on strengths in three areas: strength of vision, strength of personnel, and strength of financing. Bishop Mark Sisk articulates the vision and employs the personnel, and the Budget and Finance Committee makes recommendations about the financing.

The Budget Process

The Diocesan Council prepares the budget to present to the Convention. The Council’s Budget and Finance Committee drafts the budget for Council. The Committee has 15 members, both lay and clergy, representing each of the diocesan regions and reflecting our diversity.

Every staff and program committee submits an “asking” for the Committee to review. A Committee member is assigned to speak to the person/group who prepared the request. For the first time this year, the committee decided to reassign askings to the same committee member who reviewed it last year. It was thought this would make the process easier and facilitate better understanding of the mission of the group preparing the request. The committee member then presents the asking to the full committee. Bishop Sisk also meets with the committee to emphasize his priorities for the upcoming year. This year’s deliberations were especially
difficult as the committee was asked to trim over $400,000 in worthwhile askings in order to bring the projected expenses in line with income.

The Income Side

The Committee projects that 78% of 2007 revenue will be provided by congregations through Diocesan assessments as outlined in Canon 18. The assessment is a progressive formula that has two aspects that help congregations whose income is increasing.

First, the canon calls for averaging two years’ parochial report income before applying the assessment formula. The 2007 assessment is based on the average of the 2004 and 2005 parochial reports. Parish income in 2005 increased to almost $60 million. The average of the 2004 and 2005 parochial reports is up by 6.4% from the 2003/2004 average.

Second, Canon 18 provides that “no congregation’s apportioned share for any year shall increase by more than 12.5%”. Of the 142 congregations that contribute, a record 66 parishes will benefit from that cap in 2007.

Projected income from assessments in 2007 is up $410,000 or 4.6% from 2006. Total assessments continue to rise more slowly than the assessment base.

The contributions from the Congregational Support Plan (CSP) parishes are expected to decrease in 2007. Several congregations, including Mediator, Bronx, St. Andrew’s, Montgomery, and Virgen de Guadalupe, Poughkeepsie, are expected to receive support from other lines in the budget.

One difference in revenue is the line “invested funds and rental income.” The Executive Director of DIT, Michele Kearney, is a diocesan employee, but DIT reimburses the budget for the cost of personnel.
The amount of $86,000 has been added to this income line to cover the salary/benefits for DIT employees. This is offset by increases totaling $86,000 in expenses in: administration-salaries [line 188] and retired lay employees [line 200].

Expenses

The CSP line is again the single largest line in the budget but it was reduced by $120,000 from 2006 because of the congregations that will be leaving the Plan.

Diocesan support for the National Church is projected to increase by $125,000 in 2007. As we ask our parishes to pay their full Diocesan assessment, we think that it our responsibility as the Diocese
to set the example by fully funding our National Church assessment.

In 2006, the Bishop identified as one of his priorities, the Public Voice initiative, to increase the visibility of the Diocese and the Bishop in the public eye. To further this priority, the Bishop has proposed a staff reorganization plan that would allow him to employ a senior lay person to be responsible for this initiative and other public relations. This person’s salary/ benefits would be covered in line 188, as part of expenses formerly attributed to the Chief Administrative Officer.

Another new expense item is “Mission Initiatives” [Line 15]. .
Other lines where there were changes:
The Canons for Congregational Development
[line 28] increased by 48% or $20,000 to allow the Canons to continue their work when a grant that they had secured expires.

The “0.7% goals” [line 52] was increasedto $18,000 for 2007. Although a 50% increase, this is far short of the $63,000, needed to fund the line fully.

The chaplain at NYU was increased to full-time and hence the $17,000 increase in line 75.

THE EPISCOPAL NEW YORKER
Section	September/October 2006
Budget continues our work together

By the REV. JERRY KEUCHER At the beginning of the Budget and Finance Committee’s work, the Rev. Michael Phillips, chairperson, reminded the group that an organization depends on strengths in three areas: strength of vision, strength of personnel, and strength of financing. Bishop Mark Sisk articulates the vision and employs the personnel, and the Budget and Finance Committee makes recommendations about the financing. The Budget Process The Diocesan Council prepares the budget to present to the Convention. The Council’s Budget and Finance Committee drafts the budget for Council. The Committee has 15 members, both lay and clergy, representing each of the diocesan regions and reflecting our diversity. Every staff and program committee submits an “asking” for the Committee to review. A Committee member is assigned to speak to the person/group who prepared the request. For the first time this year, the committee decided to reassign askings to the same committee member who reviewed it last year. It was thought this would make the process easier and facilitate better understanding of the mission of the group preparing the request. The committee member then presents the asking to the full committee. Bishop Sisk also meets with the committee to emphasize his priorities for the upcoming year. This year’s deliberations were especially difficult as the committee was asked to trim over $400,000 in worthwhile askings in order to bring the projected expenses in line with income. The Income Side The Committee projects that 78% of 2007 revenue will be provided by congregations through Diocesan assessments as outlined in Canon 18. The assessment is a progressive formula that has two aspects that help congregations whose income is increasing. First, the canon calls for averaging two years’ parochial report income before applying the assessment formula. The 2007 assessment is based on the average of the 2004 and 2005 parochial reports. Parish income in 2005 increased to almost $60 million. The average of the 2004 and 2005 parochial reports is up by 6.4% from the 2003/2004 average. Second, Canon 18 provides that “no congregation’s apportioned share for any year shall increase by more than 12.5%”. Of the 142 congregations that contribute, a record 66 parishes will benefit from that cap in 2007. Projected income from assessments in 2007 is up $410,000 or 4.6% from 2006. Total assessments continue to rise more slowly than the assessment base. The contributions from the Congregational Support Plan (CSP) parishes are expected to decrease in 2007. Several congregations, including Mediator, Bronx, St. Andrew’s, Montgomery, and Virgen de Guadalupe, Poughkeepsie, are expected to receive support from other lines in the budget. One difference in revenue is the line “invested funds and rental income.” The Executive Director of DIT, Michele Kearney, is a diocesan employee, but DIT reimburses the budget for the cost of personnel. The amount of $86,000 has been added to this income line to cover the salary/benefits for DIT employees. This is offset by increases totaling $86,000 in expenses in: administration-salaries [line 188] and retired lay employees [line 200]. Expenses The CSP line is again the single largest line in the budget but it was reduced by $120,000 from 2006 because of the congregations that will be leaving the Plan. Diocesan support for the National Church is projected to increase by $125,000 in 2007. As we ask our parishes to pay their full Diocesan assessment, we think that it our responsibility as the Diocese to set the example by fully funding our National Church assessment. In 2006, the Bishop identified as one of his priorities, the Public Voice initiative, to increase the visibility of the Diocese and the Bishop in the public eye. To further this priority, the Bishop has proposed a staff reorganization plan that would allow him to employ a senior lay person to be responsible for this initiative and other public relations. This person’s salary/ benefits would be covered in line 188, as part of expenses formerly attributed to the Chief Administrative Officer. Another new expense item is “Mission Initiatives” [Line 15]. . Other lines where there were changes: The Canons for Congregational Development [line 28] increased by 48% or $20,000 to allow the Canons to continue their work when a grant that they had secured expires. The “0.7% goals” [line 52] was increasedto $18,000 for 2007. Although a 50% increase, this is far short of the $63,000, needed to fund the line fully. The chaplain at NYU was increased to full-time and hence the $17,000 increase in line 75.

Budget continues our work together