The 2020 budget was developed again this year with a focus on Becoming Beloved community. The Budget Committee continued to focus the budget application on these principals. The budget also aligns itself with the Vision Statement adopted by Diocesan Council.
[su_box title=”VISION STATEMENT” style=”glass” box_color=”#85518d” radius=”2″]A church turned inside out, to love and serve Jesus Christ in our communities in relevant ways, both new and traditional.[/su_box]
This vision statement is to guide our diocese in discerning its mission priorities and direction; the budget also reflects and aligns with this vision
The budget committee felt it was important to
- Align with diocesan goals
- Align with General Convention / Episcopal Church goals
- Align with issues in the wider church and world
- Additionally, budget applicants were asked to consider the three Jesus Movement priorities adopted by General Convention. The priorities are Evangelism, Reconciliation, and Creation Care.
The Episcopal Church continues to support the Sustainable Development Goals as a guide to our mission and ministry in the world. This budget includes programs and ministries that address these global concerns. (Click here for more info)
In aligning the budget to the diocesan vision statement, General Convention goals and initiatives of the church and wider community this budget expresses the mission and ministries of the Diocese of Southern Ohio.
There are big changes in the 2020 budget.
Mission share continues to fluctuate. The 2020 estimate reports lower income to the operating budget than in 2019. Mission share is projected to be $2,605,795 which is $76,321 lower than 2019. Preliminary estimates project mission share to decrease into the future.
Over a seven-year period mission share has fluctuated greatly.
Other operating income
The 2020 budget includes resources from investment income (4.3% draw rate), interest income, and rental income. It also includes grant resources like the UTO and Roanridge grants that fund Becoming Beloved Community. Similar to grants, income related to our intentional community, Brendan’s Crossing, is restricted for use by Brendan’s Crossing. Additionally, the Cathedral provides offsetting revenue to pay its portion of shared staff between the Bishop’s office and the Cathedral.
Commission on Congregational Life
COCL has done significant work in transforming its mission and support of congregations. The committee experienced a decrease in financial need in 2019 as compared to previous years. The 2020 budget has been reduced to reflect this reduced need. Additionally, COCL plans to use some of its 2019 budget to fund 2020 grants. These grant advances in part will make up for the planned 2020 reductions.
Resolution on Funding for Church Planting
The 144th convention passed resolution R2018-2 to set aside 2% of the mission share allocation for church new starts. The 2020 includes this set aside. COCL will be responsible for overseeing these funds
Communications and Connections
In light of the requests from congregations for more support from our communications team the Communication budget was reduced. The printing of Connections was reduced from six printed editions a year to two printed editions a year. Not only is this a considerable cost saving, but it will also free up the communications team to be more available to congregations and focus on other projects. (See note from Bishop Breidenthal)
La Iglesias Episcopal del Espíritu Santo – (IEES)
The 2019 budget includes funding for this new ministry. Started in 2018, the La Iglesias Episcopal del Espiritu Santo is the investigation and development of a Latino church plant in the northwest Cincinnati (Forest Park, Ohio). This initiative has received a grant from the Domestic and Foreign Missionary Society for $100,000. The 2019 budget includes funding from both the mission share budget and the Wm. Cooper Procter fund for this new ministry start.
Collaboration with Cathedral
The budget includes expenses and offsetting income relating to collaboration with the Cathedral. These efforts, underscoring that the whole is greater than the sum of its parts, are initially focused on three key components:
- Enhancing Creativity and Individual Impact
- Strengthening Community
- Leveraging Our Leadership Roles
Putting this understanding into practice is the impetus behind the collaboration efforts now being undertaken. The efforts of the staff of each organization will be more effectively executed with collaboration. For example, the additional resources that each organization can bring to the other, whether tangible or intangible, will enhance communication initiatives, human resources practices and facility management procedures. Sharing resources as it relates to operations will also improve our individual capacities to demonstrate best practices that can be replicated for the benefit of other churches.
New staffing related to the collaboration include a shared administrative assistant and shared facility director.
Summary of Major Program Reductions
The 2020 budget experienced significant challenges in order to balance the budget. Many ministries, mission, programs and services were reduced from their previous year funding levels.
Additionally, reductions to administration expenses were reduced. Some areas were reduced based on actual historical spending. Other areas will make operational changes in order to achieve cost savings. All staff travel was cut from the budget. Staff may apply for a professional development grant through the Bishop’s Discretionary Fund.
Becoming Beloved Community
The 2020 budget includes funding for the Becoming Beloved Community. In its second year the ministry has expanded and completed many projects. The task force has successfully attained two additional grants to support the ministry initiatives. Programs continue in 2020 largely due to this grant funding.
Budget Reserves and Set asides
Funds continued in 2020 to be set aside for the General Convention. Formally added to the 2020 is an allocation for the Bishop Search set aside. The Budget Committee was presented with information from around the church putting the cost of a Bishop search between $150,000 and $200,000.
Every budget includes the cost of operations. For the diocesan budget this area includes staff, building maintenance, repair, and operations. Insurance, utilities, supplies, software, and professional development are included in this area. Communications, information technology, and finance are major back office functions of the diocesan operating budget. The budget includes increases for health benefits and a 1.3% cost of living adjustment.
Retirements, resignations and program changes impact staffing. For the Bishop’s office this occurs annually. Significant changes have been made in staff assignments. These changes often occur during the fiscal year. This staff report represents staffing at the beginning of each budget year (what is planned in the budget). The budget reports full compensation costs. The budget also reports offsetting income for positions shared with the Cathedral.
National Church Pledge
General Convention sets forward an annual request for funding from dioceses. Southern Ohio consistently provides funding to DFMS at the budget amount required at General Convention. The 2020 budget includes the full ask from the church at $431,486.
The budget committee completed its work to Diocesan Council by making two recommendations:
- Recommend that Diocesan Council reconvene a special mission share task force to review the mission share formula. The most recent mission share resolution called for a midterm review of the formula. The Budget Committee asked that the committee be reconvened early in light of calculation issues they noticed with respect to the factors of income and expenses used in the formula and as it related to the number of parishes included in the calculation of the formula as the number of churches decline in the diocese.
- Recommend that the finance committee be asked to review parochial reports annually and report if discrepancies are encountered and empower the finance committee to make adjustments to the parochial reports once audited.
The Convention or Mission Share budget totals $3,158,045 for fiscal year 2020. The total consolidated budget, which includes the WCProcter fund, totals $6,029,121. The full budget was adopted by diocesan council and the mission share budget is presented to convention for approval.
The budget committee worked tirelessly over the summer to review budgets and met with budget administrators. Difficult discussions and difficult decisions were made relative to declining income and the need to reduce mission and program items.
Chair, Budget Committee
2020 Mission Share Rate
[pdf-embedder url=”http://www.dsoconnections.org/wp-content/uploads/2019/10/2020-Mission-Share-rate.pdf” title=”2020 Mission Share rate”]
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2020 Consolidated Budget
[pdf-embedder url=”http://www.dsoconnections.org/wp-content/uploads/2019/10/2020-Budget-Diocesan-Council-approved-100520192.pdf” title=”2020 Budget – Diocesan Council approved 10052019]
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