The Joint Standing The Joint Standing Committee of Program, Committee of Program, Budget, and Finance Budget, and Finance

Program, Budget and FinanceProgram, Budget and Finance

Canonically charged with presentingCanonically charged with presenting

to General Convention, for its to General Convention, for its approval, a balanced budget approval, a balanced budget reflecting the mission and ministry of reflecting the mission and ministry of the Church.the Church.

MembershipMembership

27 Members27 Members• BishopBishop• Two elected deputiesTwo elected deputies• 9 Provinces9 Provinces

• Ex officio:Ex officio: Secretary of GCSecretary of GC Treasurer of Executive Council & GCTreasurer of Executive Council & GC President, House of DeputiesPresident, House of Deputies Presiding BishopPresiding Bishop

Province IVProvince IVPB&F representativesPB&F representatives

The Rt. Rev. Keith WhitmoreThe Rt. Rev. Keith Whitmore Deputy Tom O’BrienDeputy Tom O’Brien Deputy Tess JudgeDeputy Tess Judge

PB&FPB&FDuring the TrienniumDuring the Triennium

Meets in Committee electronically,Meets in Committee electronically,two meetings of committee of the whole.two meetings of committee of the whole.

Acts as advisor to Executive Council in Acts as advisor to Executive Council in maintaining balanced budget policies set maintaining balanced budget policies set by previous General Convention.by previous General Convention.

Two members serve on Audit Committee.Two members serve on Audit Committee. Receives DRAFT budget proposal from Receives DRAFT budget proposal from

Executive Council 4 months prior to GC.Executive Council 4 months prior to GC.

Budget Formation ProcessBudget Formation Process

Narrative Draft Budget and Mission Narrative Draft Budget and Mission statement sent to all deputies in statement sent to all deputies in Spring, 2009 along with Blue Book.Spring, 2009 along with Blue Book.

Deputations prepare for General Deputations prepare for General Convention:Convention:• Study narrative Draft BudgetStudy narrative Draft Budget• Study Blue Book and resolutionsStudy Blue Book and resolutions

Comments on BudgetComments on Budget

Email link to comment on budget, Email link to comment on budget, offer suggestions for program and offer suggestions for program and funding:funding:

draftbudgetcomments@episcopalchurch.orgdraftbudgetcomments@episcopalchurch.org

PB&F is charged with presenting GC a PB&F is charged with presenting GC a mission driven balanced budgetmission driven balanced budget

Prior to and at Convention, PB&F works in Prior to and at Convention, PB&F works in Sections – Sections –

Corporate/CanonicalCorporate/CanonicalProgram/MissionProgram/MissionFundingFundingPresentationPresentation

Decision making by committee of the whole Decision making by committee of the whole AFTERAFTER

Opening Hearings on Priorities, Spending, Opening Hearings on Priorities, Spending, FundingFunding

Legislative Committee work and decision making Legislative Committee work and decision making by both Houses of Conventionby both Houses of Convention

Budget Process (con’t) Budget Process (con’t)

PB&F presents Budget resolution for PB&F presents Budget resolution for funding and spending for the succeeding funding and spending for the succeeding triennium 2010-2012:triennium 2010-2012:• July 15, 2009July 15, 2009

Concurrent approval by both HousesConcurrent approval by both Houses Jt Rules of Order Section 15:Jt Rules of Order Section 15: ““after the adoption of the budget of after the adoption of the budget of

The Episcopal Church, no resolution calling The Episcopal Church, no resolution calling for the expenditure of any moneys shall be for the expenditure of any moneys shall be in order.”in order.”

Deputy ResponsibilityDeputy Responsibility Education prior to ConventionEducation prior to Convention Attend Hearings on Priorities, Spending and Funding.Attend Hearings on Priorities, Spending and Funding.Open HearingsOpen Hearings

Priorities: July 7, 2009Priorities: July 7, 200912:30 – 1:30 pm12:30 – 1:30 pm

Spending: July 9, 2009Spending: July 9, 20097:30 – 9:00 pm7:30 – 9:00 pm

Resource/Funding: July 10, 2009Resource/Funding: July 10, 20097:30 – 9:00 pm7:30 – 9:00 pm

After Convention, deputies and bishops are responsible for After Convention, deputies and bishops are responsible for taking information to Diocese on budgetary issues – taking information to Diocese on budgetary issues – especially funding issues.especially funding issues.

The General Convention BudgetThe General Convention Budget2010 – 20122010 – 2012

Drafting ProcessDrafting Process

Draft Budget 2010 – 2012: Draft Budget 2010 – 2012: BackgroundBackground

The triennial budget:The triennial budget: Reflects the Church’s mission and Reflects the Church’s mission and

prioritiespriorities Includes input from staff and Includes input from staff and

Executive CouncilExecutive Council Must be balanced financiallyMust be balanced financially

Draft Budget 2010 – 2012: ProcessDraft Budget 2010 – 2012: Process

Summer Summer 2007:2007:

Budget Committee of Executive Budget Committee of Executive Council is appointedCouncil is appointed

Fall 2007:Fall 2007: Format for budget input is Format for budget input is developeddeveloped

February February 2008:2008:

EC holds think sessions to identify EC holds think sessions to identify ministry and mission needs, ministry and mission needs, opportunities, goals and prioritiesopportunities, goals and priorities

June 2008: June 2008: EC address overall mission goals and EC address overall mission goals and priorities for the budgetpriorities for the budget

Summer Summer 2008:2008:

Initial budget requests are received Initial budget requests are received from staff and CCABsfrom staff and CCABs

October October 2008:2008:

EC evaluate whether initial budget EC evaluate whether initial budget requests address mission prioritiesrequests address mission priorities

January January 2009:2009:

EC adopts proposed budget for EC adopts proposed budget for 2010-20122010-2012

Draft Budget 2010 – 2012: PrioritiesDraft Budget 2010 – 2012: Priorities

Priorities are equally important – Priorities are equally important – not rankednot ranked

• Claiming Our IdentityClaiming Our Identity• Doing Justice & Alleviating Poverty Doing Justice & Alleviating Poverty • Growing CongregationsGrowing Congregations• Promoting Anglican PartnershipsPromoting Anglican Partnerships• Strengthening Governance and Strengthening Governance and

Foundations for MissionFoundations for Mission• Interfaith partners and beyondInterfaith partners and beyond

Draft Budget 2010 – 2012: Draft Budget 2010 – 2012: Challenges and AssumptionsChallenges and Assumptions

Currently witnessing economic Currently witnessing economic conditions not seen since the Great conditions not seen since the Great Depression of the 1930sDepression of the 1930s

Initial spending requests were $23 Initial spending requests were $23 million more than expected incomemillion more than expected income

Assumes that diocesan giving, the Assumes that diocesan giving, the major source of income, will increase major source of income, will increase by one percent in 2010 and by two by one percent in 2010 and by two percent in each of the remaining two percent in each of the remaining two years of the trienniumyears of the triennium

Draft Budget 2010 – 2012: Draft Budget 2010 – 2012: Challenges and AssumptionsChallenges and Assumptions

Requires deferring major debt Requires deferring major debt repayment; freezing Church Center repayment; freezing Church Center salaries in 2010; making $300K in salaries in 2010; making $300K in additional staff cost reductions; and additional staff cost reductions; and cutting most non-personnel cutting most non-personnel expenditures, while making certain expenditures, while making certain exceptions as rent and insurance exceptions as rent and insurance paymentspayments

Ignores neither the concept of Ignores neither the concept of abundance nor the concept of being abundance nor the concept of being good stewards for all those who come good stewards for all those who come after usafter us

Draft Budget 2010 - 2012: Funding Draft Budget 2010 - 2012: Funding AssumptionsAssumptions

Total revenue is down $2.5 mill compared to Total revenue is down $2.5 mill compared to the current triennium forecastthe current triennium forecast

Diocesan Commitments up $5 mill assumed Diocesan Commitments up $5 mill assumed to grow 1%, 2% and 2% in 2010, 2011, 2012to grow 1%, 2% and 2% in 2010, 2011, 2012

Asking continues at 21% of diocesan Asking continues at 21% of diocesan operating income. If all dioceses could operating income. If all dioceses could pledge at 21%, there would be $7 million pledge at 21%, there would be $7 million annually of additional funds for missionannually of additional funds for mission

Investment income down $5 mill even with Investment income down $5 mill even with higher 5 ½% dividend rate due to impact of higher 5 ½% dividend rate due to impact of 33% decline of endowment in 2008 33% decline of endowment in 2008

Government revenue and expenses vary with Government revenue and expenses vary with refugee arrivals but reflect currently known refugee arrivals but reflect currently known contractscontracts

Draft Budget 2010 – 2012: Revenue Draft Budget 2010 – 2012: Revenue $161.8 million$161.8 million

Diocesan Commitments

59%

EBaR1%

Gross Rental After Taxes

2%

Episcopal Life3%

EMM Government

Revenue14%

Ordination Exam Fees

0%

Mission Funding Fee Generation

1%

Other Income (i.e., GC2009)

1%

EMM Non-Gov't

Revenue(Incl. IOM)1%

Investment Income

18%

Proposed Budget 2010 – 2012: SpendingProposed Budget 2010 – 2012: SpendingHonors Executive Council PrioritiesHonors Executive Council Priorities

Claiming Our Identity Claiming Our Identity Funding to live our history and save it: $170K+ for Funding to live our history and save it: $170K+ for

Archives digital content managementArchives digital content management To brand ourselves and communicate strategically through To brand ourselves and communicate strategically through

new media tools and delivery: $600K+new media tools and delivery: $600K+ To translate more resources: $650K+To translate more resources: $650K+

Doing Justice & Alleviating PovertyDoing Justice & Alleviating Poverty Funding for environmental stewardship; economic justice; Funding for environmental stewardship; economic justice;

and people living with disabilitiesand people living with disabilities Increases for Jubilee ministries: $150KIncreases for Jubilee ministries: $150K

Growing CongregationsGrowing Congregations Resources for congregational development and Resources for congregational development and

revitalization across the Evangelism & Congregational Life revitalization across the Evangelism & Congregational Life Center focus areas and geographic areasCenter focus areas and geographic areas

Stewardship resources and programs tailored for parishes Stewardship resources and programs tailored for parishes of under 70 and over 70 average Sunday attendanceof under 70 and over 70 average Sunday attendance

Emphasizes church planting and evangelism programsEmphasizes church planting and evangelism programs

Proposed Budget 2010 – 2012: SpendingProposed Budget 2010 – 2012: SpendingHonors Executive Council PrioritiesHonors Executive Council Priorities

Promoting Anglican PartnershipsPromoting Anglican Partnerships Partnerships Center Grants and programs of the Partnerships Center Grants and programs of the

represents 17% of total spending: $20+ millionrepresents 17% of total spending: $20+ million Work in peace, migration and missionary programs Work in peace, migration and missionary programs

represents an additional 18%: $23+ millionrepresents an additional 18%: $23+ million The new position of Deputy to the Presiding Bishop for The new position of Deputy to the Presiding Bishop for

Anglican Relations is continued through the trienniumAnglican Relations is continued through the triennium

Strengthening Governance and Foundations Strengthening Governance and Foundations for Missionfor Mission

Enhanced technology -- replacing 15-year old Enhanced technology -- replacing 15-year old telephone switchboards; 8-year old computers; and telephone switchboards; 8-year old computers; and accounting software that is no longer supportedaccounting software that is no longer supported

Improved technology for General Convention Improved technology for General Convention legislation; and a reformulated Church legislation; and a reformulated Church Deployment/Transitions ministry websiteDeployment/Transitions ministry website

Major support of the Mission Funding development Major support of the Mission Funding development office to renew and revitalize the Church: $4.5+ millionoffice to renew and revitalize the Church: $4.5+ million

An ongoing program of strategic/scenario planningAn ongoing program of strategic/scenario planning

Draft Budget 2010 – 2012: Expenses $ 161.8 million

Finance9%

Communication8%

Mission Coordination

56%

General Convention

9%

Presiding Bishop's Office

6%

Administration12%

Draft Budget 2010 – 2012: Expenses $ 161.8 million

DFMS 2010-2012 Draft Expenses $ 161.8 million

Program $104,221,961

65%

Corporate $33,117,183

20%

Canonical $24,452,033

15%

Draft Budget 2010 – 2012: SummaryDraft Budget 2010 – 2012: Summary

The triennial budget:The triennial budget:

Is balanced financiallyIs balanced financially• Spending and revenue, both at $161.8 million Spending and revenue, both at $161.8 million • Revenue will be subject to diocesan commitments Revenue will be subject to diocesan commitments

and investment market performance and investment market performance

Reflects the Church’s mission Reflects the Church’s mission Includes input from staff and volunteersIncludes input from staff and volunteers Commits our resources responsiblyCommits our resources responsibly Does not include the cost of relocating the Does not include the cost of relocating the

ArchivesArchives

Is a Draft Budget really a Draft?Is a Draft Budget really a Draft?

Program, Budget and Finance Program, Budget and Finance committed to transparency:committed to transparency:• Email link for commentsEmail link for comments• ENS articlesENS articles• President, House of Deputies deputy President, House of Deputies deputy

online forumonline forum• Hearings at General ConventionHearings at General Convention