With Revenue Down, $1.8 Million Deficit Looms for Council

From The Living Church:

10/29/2007

Some $1.8 million will need to be trimmed from the 2008 budget when the national Executive Council meets in Quito, Ecuador, next February.

The deficit, which includes up to $550,000 in additional expenses for staff reorganization, was discussed during meetings of Executive Council’s Administration and Finance Committee. Council met Oct. 26-28 in Dearborn, Mich.

The majority of the deficit is due to an updated forecast of revenue about 2 percent less than the $50.4 million approved in the budget by the 75th General Convention in 2006. The remainder is due to additional estimated expenses of $444,000 attributed to the Church Center staff reorganization.

Treasurer Kurt Barnes said some of the lower-than-expected revenue would be offset by applying money available from lower-than-budgeted expenses this year. He expects similar savings on expenses in 2008, but that amount is set by General Convention until expenses are realized.

Expenses tied to the reorganization would be ongoing to fund the regional satellite offices and staff salary increases commensurate with greater managerial responsibilities at the regional centers. During the Administration and Finance Committee meetings, Mr. Barnes and Linda Watt, chief operating officer, said the reorganization would update Church Center management structures previously unchanged for decades and ultimately result in significant savings.

In response to a question by a reporter, Presiding Bishop Katharine Jefferts Schori said New York City’s relatively high cost of living could be turned to The Episcopal Church’s advantage by reassigning staff to areas of the country where the cost of living is lower, and perhaps leasing more floor space at its Manhattan headquarters, prime real estate near the United Nations.

Bishop J. Jon Bruno of Los Angeles supported the regional satellite office concept. This will enable headquarters to extend its reach beyond Wall Street, he said during debate in the closing plenary on Sunday.

Steve Waring