Policy receives unanimous support from Executive Board

By Christie M. Wills

While some have characterized the $120,000 shortfall in this year’s budget as an opportunity to re-examine diocesan structure, it has also been a looming threat to the continuation of current diocesan ministry.
On the positive side, the urgency of the shortfall has given energy to a review of diocesan structure, especially for the budget process. This review, completed in the summer by an ad hoc committee created by Annual Council, suggested changes to the way the diocese does business including: a more up-front role for the bishop at convocation meetings, an additional convocation meeting in the spring and a Mutual Ministry Review that will feed a Long-Range Planning committee.
On the negative side, the shortfall, $40,000 as of mid-October, threatens current ministry and imperils the ability to support new ministry in the future. The shortfall has been whittled down significantly thanks to the generosity of over 60 sponsors who have given nearly $20,000 in individual gifts and churches that have made one-time gifts. Although Annual Council delegates approved the use of a line of credit to bridge a possible funding gap before year-end, the bridge may not be long enough to reach through 2007.

The 2007 proposed budget that has been presented to convocations contains all of the askings of diocesan programs for their ministries. It also contains a potential shortfall of $157,000. In order to fund this proposed budget, parishes would be called on to increase their giving to the diocese by 20% over what they pledged for 2006. But if churches follow the trend in recent years and only increase giving by 4%, the projected shortfall next year will still be $128,000.
The Executive Board has been wrestling with this immediate financial situation for the 2007 budget as it waits for church pledges to be turned in by December 15.
“We have cut funding for program and staff positions every year that I have been bishop,” said Bishop Neff Powell. “Our overhead is about as thin as it can get.”
“We are being forced into making choices among ministries,” said diocesan administrator Alan Boyce. “We shouldn’t have to keep making choices among the good programs we provide.”
Voluntary Proportionate Giving, in effect since it was approved at Annual Council in 1965, has allowed parishes to decide for themselves how much to pledge to the diocese. Because it has become clear that this current funding plan has not yielded adequate support for diocesan ministry, the Executive Board has taken a step to stabilize future funding.
At their September 16 meeting, the Executive Board unanimously passed a policy for Funding the Mission of the Diocese. It states that the minimum standard of giving for each parish will be based on the following percentages of their plate and pledge income:

Plate and Pledge Income:

• $400,000 and up —14% or greater
• $200,000- $399,999 —12% or greater
• $0- $199,999 —10% or greater

Currently, 15 of the 56 parishes in the diocese already meet or exceed this proposed formula. Of the 42 parishes that would be asked to stretch to increase their giving, most of them (36 parishes) are within $8,000 of their targeted pledge.
The funding plan does have a greater expectation of churches with more resources. Some Executive Board members and delegates at the Roanoke Convocation would have preferred to see every parish give an equal 10% to the diocese. “We’ve run the numbers on that,” said Executive Board member Bud Hooss, St. Stephen’s, Forest.
“If we went to a flat 10% across the board, we would only receive about $720,000 which is about $100,000 less than we need,” said Hooss.
“Bill Gates can afford to give away a lot more money than I can,” said diocesan treasurer John Hall.
“To whom much is given, much is required,” echoed Powell.

In comparison to other dioceses, Southwestern Virginia’s parish pledging is extremely modest. Among 14 dioceses with a similar number of parishes and baptized members, Southwestern Virginia’s operating income was at the bottom of the list, with about $150,000 less to work with than the next least-funded diocese (Western Louisiana).
In addition, only ten dioceses out of 80 continue to use a voluntary plan for giving to the diocese. In contrast, 25 dioceses assess all of their churches between 16-25% of their total operating income. Another 27 use graduated formulas depending on the size of the parish, similar to the policy approved by the Executive Board.
“My vision for the diocese is for a seamlessness of ministry, from youngest to oldest parishioners,” said Powell.
To support current ministry and grow into new ministry God may be calling us to do, the diocese must have “a floor, a minimum expectation of what parishes will be pledging to the diocese to prevent the sudden ups and downs in funding,” said Powell. The Ad Hoc committee calls for planning multi-year budgets in the future; therefore, Powell says, the diocese requires predictability in year-to-year funding.
“Uncertain funding means not only are we paralyzed from looking at that vision for the future but we are also on tenuous ground for preserving the gifts that we must be stewards of today,” said Boyce.
The 2007 budget and the proposed funding policy are being discussed at all Fall Mission Day meetings in the convocations and will be taken up by delegates at Annual Council. //

Executive Board members will be visiting parishes in teams of two between October 25-December 15 to reconnect parishes with the diocesan story.
The 2007 proposed budget summary and detailed budget are available at www.dioswva.org.