[UPDATE: As of 11/8/08, I still have yet to hear definitively regarding the discussion as noted in the second half of this post, below, on the matter of the $700,000. I'm going to suggest as this point that there wasn't much that was going to be said definitively until the dioceses of Quincy (now having voted the same way San Joaquin and Pittsburgh did), and presumably Fort Worth following suit also this month.]
(slightly revised as of 10/28, in order of paragraphs)
As stated at the Episcopal San Joaquin Convention this past weekend, the vestry of St. John’s, Tulare, and I are here to assist in helping the diocese grow and develop in the mission and ministry of Jesus Christ, as we hope all would see themselves. The convention itself offered many examples of people working together to “right the ship”, as Bp Lamb offered in his address.
St. John’s convention delegates, George Sutton and Robert Sutton (not related, BTW), and I have seen immediately that this would be a good place to start, and so we offer the following in that spirit of labor together:
We call on the members and leaders of the diocese to recognize the need to make our way based on what God has provided us as we go on our way, with good Christian stewardship and hefty Spirit-informed prayer in the Name of Jesus, and without undue reliance on grants from a resource that is seeing measurable financial decline.
Every diocesan treasurer’s moment of pain is when a delegate gets up to amend a line item in the presented diocesan budget. Or when a delegate comes to the microphone at Convention and says, “This budget is no good. It’s not balanced.”
Diocesan budgets can be difficult and complex matters, not the least of which is that diocesan conventions are required to pass submitted budgets. It can be seen, primarily, as an approval vote. Budgets are not crafted at Convention itself. The Canons require Diocesan Council to submit a budget to Convention; delegates generally are asked to trust the process Council develops using the Canons as guide. No matter how “open” you make the process in regard to submission of requests, and hearings, etc., including providing some kind of Q & A at a pre-Convention deanery or convocation meeting as well as at Convention itself, the great bulk of delegates are not involved, nor avail themselves of the process of building a budget. Rectors and Vicars are included in that voluntary and involuntary disenfranchisement; experienced congregational leaders have also usually found that only a very small percentage of people even have a glancing interest in the ongoing finances of the dioceses — except on hotspot issues like camps, staff wages, youth programs, newspapers, campus ministries, and assessments. And whether the budget is balanced or not. So the Treasurer has the responsibility of selling the budget to Convention as something everyone can trust is a valid symbol and tool of the life and ministry of the diocese. “Trust me.”
When a budget is presented in such fashion it is not helpful to present any facet of which can be questioned and elicits a response of “it is anticipated”, or “we are hoping that”, or “we’ll know next month if”, or “we won’t know until next month”, or “it is unknown at this time”, etc., etc. It is especially unhelpful in the development of trust to apply those uncertain phrases to the income side of the budget.
Parish and Mission annual budgets are no different, but often less complicated in regard to underlying agendas, intentions, hidden costs, etc. Our average, normal small congregation (all denominations) usually is pretty bare bones. Even there, if the treasurer or rector or vicar gets up at the annual meeting and says in the face of some noticeable difference between income and expenses, “I’m sure it will all work out”, you can count on not a few arteries to get hardened. Prior to that moment, responsible vestries and bishop committees will provide contingency plans for deficits, which might include Budget A, and Budget B, where Budget A is balanced for the sake of presentation, and Budget B reflects the hopes and anticipations, including the necessary element of Faith. (There is a difference that can exist between diocesan and congregational budgets when bylaws allow for the vestry (usually) to submit a budget for presentation at the annual meeting that has already been approved and does not require ratification.)
On the diocesan level, especially because it can be more complex, a realistic, only-figure-expenses-from-what-the-canons-define-as-revenue kind of budget demands balancing. And I’ll tell you now in case you aren’t familiar with the appropriate Canon (you should look it up yourself – see the Episcopal San Joaquin diocesan webpage for links, or ask your Rector or Vicar for their printed copy), grants to the diocese via requests to TECUSA Executive Council or General Convention itself are not listed there. It doesn’t say you can’t ask. But the fiscally responsible thing to do – even given the irregular situation we are in – is to provide a balanced budget based solely on what revenues can be expected as a regular course of assessments and proceeds from available trusts and investments. We have no hope of understanding our realistic viability if we do not.
Broken down to numbers based on the revenue Canon, our Episcopal San Joaquin diocesan budget for 2009 would be somewhere in the $175K to $240K range. Factor in your episcopacy, and whatever left goes to barebones essentials. We grow from there.
In any case, a budget was passed this past weekend at Convention for approximately $600,000 (without factoring in litigation costs), that depends on funds being granted through Executive Council (a minimum of approximately $375,000 to $425,000 needed to meet presented budget expenses), which I can only presume was a possibility raised through conversation engaged well before Council first began budget deliberations. Some kind of narrative would be helpful in such situations. But the fact that conversations from the summer could not remotely be factored into dollars and cents until after Executive Council heard from TEC Treasurer (last week) and a resolution for such grant requests could finally be moved. There was no guarantee, except for the benefit of a very high priority on the part of the Presiding Bishop and most of Executive Council for making sure the San Joaquin situation does not fail. Even then, what was passed by Executive Council was not immediately clear as to the meaning of “up to $700,000″ for four dioceses mentioned - as evidenced by comments made during the consideration of the budget in Hanford on Saturday wondering if that meant the $700,000 would be split “three ways” (people weren’t counting Quincy). Now that I’ve seen the resolution and commentary (see below, hat tip to Fr. Jim Simons, from his weblog in Pittsburgh), especially the identification of $3M in appreciated income at the end of the Explanation, it is quite possible they meant that each of the 4 dioceses could be afforded the $700,000.
“Up to” also provides a means for the Treasurer and the Presiding Bishop as the signatories to these funds to say ”yay” or “nay” to any line item in the budget expenses they might question. I would submit that most of the request for budget grant will be rubber stamped; the possibility of withholding still exists, though, which makes the request not a 100% sure thing.
But the contingency plan? What if TECUSA Executive Council had said, “Sorry”, days before heading into our convention? Even if Diocesan Council or Treasurer Tom (God bless him) had something ready to print up and pass out, we can’t possibly believe that Executive Council will continue to bail out a diocesan budget that continues to budget for more expenses than normal, Canonical revenue/income. Without saying “We should have had….”, which is not particularly helpful at this point, what would be helpful is an immediate consideration of a 2009 (yes, 2009) budget based only on Canonical revenue definition, disbursed to all congregations for complete transparency, and with the invitation (perhaps the charge) for each congregation at least at board level to discuss the implications of such a barebones budget, brainstorm responses, and get those back to Council prior to when a normal budget discernment process would begin for 2010 budget, just past the Feast of the Resurrection of Jesus Christ.
Further, we would say right away, besides the recommendation made above, we pray and work toward a strong “Legacy Program”, a la Diocese of Olympia, as presented in one of the convention workshops by Olympian Carl Knirk. We will attempt to implement this program in our own parish in January. Any congregations that would like to do the same might work with us for encouragement and support, and sharing of ideas.
God move in our midst.
The following is the resolution of the Executive Council recognising and supporting those in the Diocese of Pittsburgh and San Joaquin, committed to staying in the Episcopal Church. The Executive Council is “General Convention at rest”.
Resolved, That up to $700,000 of undistributed accumulated income and appreciation be made available in calendar year 2009 from one or more of the following trust funds established to support the missionary work or mission work of the Church,
TF#756 Lloyd, Ethel. S., Bequest of (1996)
TF#200.2 The St. leger Fund (1909)
TF#492 Hopkins, Theresa B., Bequest of (1936)
TF#723 Zabriskie Memorial Fund (1961)
TF#814 Boyd, Lizzie E. Fund (1978)
TF#656 Monteagle, Lydia Paige, Bequest of (1953)
TF#678 Olden, Sarah E., Bequest of (1955)
TF#860 Gregg, Ellen F., and David McM. Memorial Fund (1982)
TF#540 Seager, Schuyler F., Gift of (1941)
And be it further
Resolved, That these funds be used to provide financial assistance during calendar year 2009 in the Diocese of San Joaquin, the Diocese of Pittsburgh, and other similarly situated dioceses for clergy salaries and other expenses; and be it further
Resolved, That in the light of the action of the Presiding Bishop in deposing the Rt. Rev. Robert W. Duncan as Bishop of Pittsburgh for abandoning the communion of this Church, the Executive Council joins with the Presiding Bishop in recognizing the Rev. James Simons, the Rev. Jeffrey Murph, and Ms. Mary Roehrich as the current Standing committee of the Diocese of Pittsburgh, and designates a portion of the funds referred to in the first Resolve be sued to provide financial assistance during calendar year 2009 to the current leadership of the Diocese of Pittsburgh for clergy salaries and other expenses; and be it further
Resolved, That the Executive Council joins with the Presiding Bishop in recognizing The Rev. Keith Axberg, The Rev. Glenn Kanestrom, Ms. Cindy Smith, Mr. John Ledbetter, The Rev. John Shumaker, Mr. Richard Jennings, Ms. Beryl Simkins, and The Rev. Tim Vivian as the current Standing committee of the Diocese of San Joaquin and designates a portion of the funds referred to in the first Resolve be used to provide continued financial assistance to the current leadership of the Diocese of San Joaquin, as well as to the leadership of other similarly-situated dioceses, for clergy salaries and other expenses during the calendar year 2009; and be it further
Resolved, That the Executive Council of The Episcopal Church commends the work of all those involved in supporting the efforts by Dioceses to exercise their pastoral and fiduciary responsibilities in regard to the ownership of properties and funds; and be it further
Resolved, That the disbursement of these funds from one or more of the above trusts be made by the Presiding Bishop and the Treasurer.
Explanation:
Some members of the Episcopal Church in the Dioceses of San Joaquin and Pittsburgh have opted to leave the Church. The remaining members of these dioceses-lay and ordained-find they have reduced resources from which to care for one another and to reach out to those who do not know the Gospel of Christ. Ordained ministers, who provide an ongoing pastoral presence to the continuing Episcopalians, not face insecurity with respect to their salaries.
The mission of the Church is to restore all people to unity with God and each other in Christ—through prayer and worship, proclaiming the Gospel, and promoting justice, peace and love. These dioceses have become fertile areas for mission work.
The Executive Council authorized a draw of up to $500,000 to fund similar work in 2008. Through October, nearly $421,000 had been expended to support mission in the dioceses of San Joaquin, Fort Worth and Pittsburgh. These disbursements were reviewed and approved by legal counsel, who confirmed that the disbursements complied with the terms and conditions of the trusts.
The undistributed appreciation in the above named trust funds totaled an estimated $3.0 million as of 9/30/08.
(This copy of the resolution is not a “certified” copy, but reproduced from the hard copy of the resolution in the same language passed by Council on October 23, 2008 in Helena, MT.)