Diocesan Budget 2009

1. Diocesan Budget 2009

2. Bishop Tom’s Letter • Heard financial concerns from congregations • New coverage and oversight • Reorganization • Mission Strategy is still central

3. Organization of Diocesan Operations • Five Functional Areas: • Deaneries, Congregations, and Clergy • Congregational Resources and Training • Strategic Ministries • Episcopal and Diocesan Support • Administrative Services(see pp. 11 – 13)

4. Episcopal Oversight and Responsibilities • Oversight of congregations and deaneries aligned with visitation schedules • Some specialized roles • Distributed oversight of Strategic Ministries • Other assignments shared among bishops

5. Budget Overview • Core versus Supplemental Budgets • Financial Reserve for 2009

6. Core versus Supplemental • Core Budget • Funded from assessments and income from Diocesan investments • Supplements • From fundraising, grants, and bishop’s discretionary funds • Additional funding for Mission Strategy • And a place for experimental programs

7. Financial Reserve for 2009 • 2009 budget is not “business as usual” • Intentional scaling back of staff and programs to provide flexibility to address economic challenges ahead • Diocesan leadership – the bishops and the Diocesan Council – will act on this

8. Projected Core Revenue

9. Projected Core Operating Revenue: $6,937,871 Trust Income $ 905,360 (new spending policy) Agency Income $ 807,511 Interest Assessments and Voluntary Contributions $ 5,185,000

10. Projected Core Expenses

11. Projected Core Expenses: $6,809,779 RESERVE DEAN’Y, CONG, & CLERGY CONG RES’R’S & TRAIN’G EPIS & DIO SPT STRATEGIC MINISTRIES ADMIN SERVICES DIOCESAN LEADERSHIP TEAM THE EPISCOPAL CHURCH

12. Expenses by Area (pp. 14-15) • Diocesan Leadership Team • Deaneries, Congregations, and Clergy • Congregational Resources and Training • Strategic Ministries • Episcopal and Diocesan Support • Administrative Services(Detailed projections found on pp. 27 – 31)

13. DIOCESAN LEADERSHIP TEAM Bishops Shaw, Cederholm, and Harris, and the Canon to the Ordinary DIOCESAN LEADERSHIP TEAM $ 671,181 for compensation expenses

14. DEANERIES, CONGREGATIONS, & CLERGY Staff contacts for congregations and clergy 3 administrative assistants for the bishops Canon for Transition Ministry Staff Officer for Ordained Vocations Area administrative assistant New position to help with transition ministry Commission on Ministry Support for Deaneries Transition Ministry Programs for Clergy DEAN’Y, CONG, & CLERGY $ 985,396

15. CONG RES’R’S & TRAIN’G CONGREGATIONAL RESOURCES AND TRAINING Mission Strategy Goal: “Provide practical resources and training for opportunities for congregations in evangelism, stewardship and congregational development and Christian formation.” Staff resources New position: Director Three existing staff positions Grant programs – cuts in funding from 2008 levels Learning events and workshopsSpring event at BU Fall Resource Day at Bentley Business consultants and congregational coaches Opportunities to identify areas for additional support $ 966,379

16. STRATEGIC MINISTRIES Ministry areas that receive significant diocesan support Jubilee Ministry and other Mission Initiatives Supported Missions Ethnic Ministries College Chaplaincies Young Adult Intern Programs Urban Ministriessupport for new initiative in Dorchester and for continuing Hispanic ministry in Salem after Urban Residency ends Youth Programs Connections with related and affiliated organizations STRATEGIC MINISTRIES $ 1,392,900

17. EPISCOPAL AND DIOCESAN SUPPORT Episcopal Church Assessment Convention, Diocesan Council, Standing Committee Expenses for Bishops Registrar-Historiographer and Archives Diocesan Communications (FYI, Episcopal Times) EPIS & DIO SPT $ 537,552 + $1,190,000 = $ 1,727,552 THE EPISCOPAL CHURCH

18. ADMINISTRATIVE SERVICES Treasurer’s Office Human Resources Information Technology Lease payment to Cathedral for office space and services Fee income for accounting services to DIT, Cathedral, and for diocesan health insurance program ADMIN SERVICES $ 1,076,371

19. CORE OPERATING RESERVE Restraint by Budget Committee not to allocate every last dime of projected revenues Provides Bishops and Diocesan Council with some flexibility to address special circumstances that may arise in 2009 – it is not intended to go into savings Diocesan Council and Executive Committee committed to a process to consider how to use this reserveRemember, a budget is a set of projections of both revenues and expenses – we need to see how both sides of the ledger actually turn out RESERVE $ 128,092

20. Key Factors Leading to Reserve • New spending policy for trust income • Staff and program cuts in diocesan communications • Reductions in core operating costs of youth ministry, Micah Project, and college chaplaincies • Elimination of Assistant Controller position • Elimination of advocacy grant to ECM • Cuts in diocesan grant programs

21. RESERVE DEAN’Y, CONG, & CLERGY CONG RES’R’S & TRAIN’G EPIS & DIO SPT STRATEGIC MINISTRIES ADMIN SERVICES DIOCESAN LEADERSHIP TEAM THE EPISCOPAL CHURCH

22. Staffing Costs in Core Budget

23. STAFFING IN DIOCESAN OPERATIONS by area ~ 80% 59% 50% 39% 23% 100% ( 0 %)

24. Comments on Core Budget

25. RESERVE DEAN’Y, CONG, & CLERGY CONG RES’R’S & TRAIN’G EPIS & DIO SPT STRATEGIC MINISTRIES ADMIN SERVICES DIOCESAN LEADERSHIP TEAM THE EPISCOPAL CHURCH

26. Supplemental Sources and Uses (pp. 16-17) Bishop’s Discretionary Funds Development Office staff and programs New Veterans’ Ministry project Development Goals Annual Fund (to support Mission Strategy) Urban Residents Program Relational Evangelism Program

27. Unallocated Reserves For Diocesan Council to respond to upcoming challenges

28. Three Sources of Reserves • Core Operating Reserve ($ 120,000) • Accumulated House of Mercy Funds ($ 180,000) • Anticipated additional fundraising capacity ($ 100,000)

29. Core Operating Reserve • Projected Revenues exceed Projected Expenses by $128,000 • Diocesan Council may want to wait to see how actual experience in 2009 turns out

30. House of Mercy Reserves • Annual income from trusts to be used “for the work of the Church for women in need” • About $ 140,000 accumulated now, with an additional $ 40,000 expected in 2009 • Sending Serving Grants committee solicited proposals in spring 2008 for new programs

31. House of Mercy Reserves (2) • New economic challenges led to reconsideration of SSG initiative • New Idea for Council: Since most parishes have current programs that satisfy terms of trust, why notdistribute funds widely to parishes with minimal paperwork ? • Council is wrapping up existing SSG initiative

32. Annual Fund Reserve • Historical Experience with Annual Fund(and its exclusion in 2009 from core budget) • Reorganization provides some flexibility with anticipated proceeds from Annual Fund • Diocesan Council to discuss targeted appeal to help parishes, possibly with long term initiatives

33. Three Sources of Reserves • Core Operating Reserve ( $ 120,000 ) • Accumulated House of Mercy Funds ($ 180,000 ) • Anticipated additional fundraising capacity ($ 100,000) • Total: $ 400,000

34. Summary • We heard the financial concerns from congregations and responded • Reorganization is reflected in the budget • A focus on the core budget • Three sources of financial reserves available • Mission Strategy remains central and essential