Episcopal News Service March 4, 2007
Executive Council approves 2007 budget, adopts resolutions on mission, ministry
By Mary Frances Schjonberg
[ENS] The Executive Council of the Episcopal Church March 4 approved a revised 2007 budget for the church's mission and ministry.
The Council also issued a letter to the Church concerning the Primates' Meeting in Tanzania. An ENS story on the letter will follow.
While anticipated diocesan commitments have increased by 1.1 percent, to continue the mission and ministry of the Episcopal Church would have resulted in a $3.8 million deficit with some change to the 2007 budget.
So as not to have to reduce programs for the Church's mission and ministry, the council agreed in Resolution AF-21 to raise the investment income payout rate for 2007 from 5 percent to 5.5 percent, creating a one-year exception to the rate established in June 2005, and to take up to $2.3 million from short-term reserves to add to the 2007 budget's income.
Treasurer and Chief Financial Officer N. Kurt Barnes told the council March 3 that, while he generally supports leaving the payout rate at 5 percent in order to protect the endowment funds against "de-capitalization," the funds can withstand a one-year increase. Assuming the current 3.2 percent rate of inflation, the fund could withstand a 17 percent loss and still be able to make a 5 percent payout in 2008 from the income, he said.
Executive Council Standing Committee on Administration and Finance chair Josephine Hicks (Diocese of North Carolina) said that the two steps were a "hard swallow" on the part of the committee but that the only other choice was to cut the budget for mission. That was not an option, she said.
The shortfall, which is larger than the $820,000 predicted when the budget was approved in June by General Convention, is due in large part of "lower diocesan commitments on the revenue side," Barnes said. The dioceses of Newark, Pennsylvania and Southwest Florida account for most of that reduction.
In addition, income anticipated from the rental of two and a half floors of the Episcopal Church Center will not begin in 2007. The Church Center is currently negotiating with a potential tenant with the aim of occupancy in 2008.
Full story and photo: http://www.episcopalchurch.org/3577_83072_ENG_HTM.htm
-- The Rev. Mary Frances Schjonberg is national correspondent for the Episcopal News Service. The Rev. Jan Nunley, deputy for communication, contributed to this story.
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