The Joint Standing Committee of Program, Budget, and Finance

Program, Budget and Finance Canonically charged with presenting Canonically charged with presenting to General Convention, for its approval, a balanced budget reflecting the mission and ministry of the Church.

Membership Membership 27 Members 27 Members BishopBishop Two elected deputiesTwo elected deputies 9 Provinces9 Provinces Ex officio:Ex officio: Secretary of GC Secretary of GC Treasurer of Executive Council & GC Treasurer of Executive Council & GC President, House of Deputies President, House of Deputies Presiding Bishop Presiding Bishop

Province IV PB&F representatives The Rt. Rev. Keith Whitmore The Rt. Rev. Keith Whitmore Deputy Tom O’Brien Deputy Tom O’Brien Deputy Tess Judge Deputy Tess Judge

PB&F During the Triennium Meets in Committee electronically, Meets in Committee electronically, two meetings of committee of the whole. Acts as advisor to Executive Council in maintaining balanced budget policies set by previous General Convention. Acts as advisor to Executive Council in maintaining balanced budget policies set by previous General Convention. Two members serve on Audit Committee. Two members serve on Audit Committee. Receives DRAFT budget proposal from Executive Council 4 months prior to GC. Receives DRAFT budget proposal from Executive Council 4 months prior to GC.

Budget Formation Process Narrative Draft Budget and Mission statement sent to all deputies in Spring, 2009 along with Blue Book. Narrative Draft Budget and Mission statement sent to all deputies in Spring, 2009 along with Blue Book. Deputations prepare for General Convention: Deputations prepare for General Convention: Study narrative Draft BudgetStudy narrative Draft Budget Study Blue Book and resolutionsStudy Blue Book and resolutions

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

PB&F is charged with presenting GC a mission driven balanced budget Prior to and at Convention, PB&F works in Sections – Prior to and at Convention, PB&F works in Sections –Corporate/CanonicalProgram/MissionFundingPresentation Decision making by committee of the whole AFTER Decision making by committee of the whole AFTER Opening Hearings on Priorities, Spending, Funding Opening Hearings on Priorities, Spending, Funding Legislative Committee work and decision making by both Houses of Convention Legislative Committee work and decision making by both Houses of Convention

Budget Process (con’t) PB&F presents Budget resolution for funding and spending for the succeeding triennium : PB&F presents Budget resolution for funding and spending for the succeeding triennium : July 15, 2009July 15, 2009 Concurrent approval by both Houses Concurrent approval by both Houses Jt Rules of Order Section 15: Jt Rules of Order Section 15: “after the adoption of the budget of The Episcopal Church, no resolution calling for the expenditure of any moneys shall be in order.” “after the adoption of the budget of The Episcopal Church, no resolution calling for the expenditure of any moneys shall be in order.”

Deputy Responsibility Education prior to Convention Education prior to Convention Attend Hearings on Priorities, Spending and Funding. Attend Hearings on Priorities, Spending and Funding. Open Hearings Priorities: July 7, :30 – 1:30 pm Spending: July 9, :30 – 9:00 pm Resource/Funding: July 10, :30 – 9:00 pm After Convention, deputies and bishops are responsible for taking information to Diocese on budgetary issues – especially funding issues. After Convention, deputies and bishops are responsible for taking information to Diocese on budgetary issues – especially funding issues.

The General Convention Budget 2010 – 2012 Drafting Process

Draft Budget 2010 – 2012: Background The triennial budget: Reflects the Church’s mission and priorities Reflects the Church’s mission and priorities Includes input from staff and Executive Council Includes input from staff and Executive Council Must be balanced financially Must be balanced financially

Draft Budget 2010 – 2012: Process Summer 2007: Budget Committee of Executive Council is appointed Fall 2007: Format for budget input is developed February 2008: EC holds think sessions to identify ministry and mission needs, opportunities, goals and priorities June 2008: EC address overall mission goals and priorities for the budget Summer 2008: Initial budget requests are received from staff and CCABs October 2008: EC evaluate whether initial budget requests address mission priorities January 2009: EC adopts proposed budget for

Draft Budget 2010 – 2012: Priorities Priorities are equally important – not ranked Claiming Our IdentityClaiming Our Identity Doing Justice & Alleviating PovertyDoing Justice & Alleviating Poverty Growing CongregationsGrowing Congregations Promoting Anglican PartnershipsPromoting Anglican Partnerships Strengthening Governance and Foundations for MissionStrengthening Governance and Foundations for Mission Interfaith partners and beyondInterfaith partners and beyond

Draft Budget 2010 – 2012: Challenges and Assumptions Currently witnessing economic conditions not seen since the Great Depression of the 1930s Currently witnessing economic conditions not seen since the Great Depression of the 1930s Initial spending requests were $23 million more than expected income Initial spending requests were $23 million more than expected income Assumes that diocesan giving, the major source of income, will increase by one percent in 2010 and by two percent in each of the remaining two years of the triennium Assumes that diocesan giving, the major source of income, will increase by one percent in 2010 and by two percent in each of the remaining two years of the triennium

Draft Budget 2010 – 2012: Challenges and Assumptions Requires deferring major debt repayment; freezing Church Center salaries in 2010; making $300K in additional staff cost reductions; and cutting most non-personnel expenditures, while making certain exceptions as rent and insurance payments Requires deferring major debt repayment; freezing Church Center salaries in 2010; making $300K in additional staff cost reductions; and cutting most non-personnel expenditures, while making certain exceptions as rent and insurance payments Ignores neither the concept of abundance nor the concept of being good stewards for all those who come after us Ignores neither the concept of abundance nor the concept of being good stewards for all those who come after us

Draft Budget : Funding Assumptions Total revenue is down $2.5 mill compared to the current triennium forecast Diocesan Commitments up $5 mill assumed to grow 1%, 2% and 2% in 2010, 2011, 2012 Diocesan Commitments up $5 mill assumed to grow 1%, 2% and 2% in 2010, 2011, 2012 Asking continues at 21% of diocesan operating income. If all dioceses could pledge at 21%, there would be $7 million annually of additional funds for mission Asking continues at 21% of diocesan operating income. If all dioceses could pledge at 21%, there would be $7 million annually of additional funds for mission Investment income down $5 mill even with higher 5 ½% dividend rate due to impact of 33% decline of endowment in 2008 Investment income down $5 mill even with higher 5 ½% dividend rate due to impact of 33% decline of endowment in 2008 Government revenue and expenses vary with refugee arrivals but reflect currently known contracts Government revenue and expenses vary with refugee arrivals but reflect currently known contracts

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

Proposed Budget 2010 – 2012: Spending Honors Executive Council Priorities Claiming Our Identity Funding to live our history and save it: $170K+ for Archives digital content management Funding to live our history and save it: $170K+ for Archives digital content management To brand ourselves and communicate strategically through new media tools and delivery: $600K+ To brand ourselves and communicate strategically through new media tools and delivery: $600K+ To translate more resources: $650K+ To translate more resources: $650K+ Doing Justice & Alleviating Poverty Funding for environmental stewardship; economic justice; and people living with disabilities Funding for environmental stewardship; economic justice; and people living with disabilities Increases for Jubilee ministries: $150K Increases for Jubilee ministries: $150K Growing Congregations Resources for congregational development and revitalization across the Evangelism & Congregational Life Center focus areas and geographic areas Resources for congregational development and revitalization across the Evangelism & Congregational Life Center focus areas and geographic areas Stewardship resources and programs tailored for parishes of under 70 and over 70 average Sunday attendance Stewardship resources and programs tailored for parishes of under 70 and over 70 average Sunday attendance Emphasizes church planting and evangelism programs Emphasizes church planting and evangelism programs

Proposed Budget 2010 – 2012: Spending Honors Executive Council Priorities Promoting Anglican Partnerships Partnerships Center Grants and programs of the represents 17% of total spending: $20+ million Partnerships Center Grants and programs of the represents 17% of total spending: $20+ million Work in peace, migration and missionary programs represents an additional 18%: $23+ million Work in peace, migration and missionary programs represents an additional 18%: $23+ million The new position of Deputy to the Presiding Bishop for Anglican Relations is continued through the triennium The new position of Deputy to the Presiding Bishop for Anglican Relations is continued through the triennium Strengthening Governance and Foundations for Mission Enhanced technology -- replacing 15-year old telephone switchboards; 8-year old computers; and accounting software that is no longer supported Enhanced technology -- replacing 15-year old telephone switchboards; 8-year old computers; and accounting software that is no longer supported Improved technology for General Convention legislation; and a reformulated Church Deployment/Transitions ministry website Improved technology for General Convention legislation; and a reformulated Church Deployment/Transitions ministry website Major support of the Mission Funding development office to renew and revitalize the Church: $4.5+ million Major support of the Mission Funding development office to renew and revitalize the Church: $4.5+ million An ongoing program of strategic/scenario planning An ongoing program of strategic/scenario planning

Draft Budget 2010 – 2012: Expenses $ million

Draft Budget 2010 – 2012: Summary The triennial budget: Is balanced financially Is balanced financially Spending and revenue, both at $161.8 millionSpending and revenue, both at $161.8 million Revenue will be subject to diocesan commitments and investment market performanceRevenue will be subject to diocesan commitments and investment market performance Reflects the Church’s mission Reflects the Church’s mission Includes input from staff and volunteers Includes input from staff and volunteers Commits our resources responsibly Commits our resources responsibly Does not include the cost of relocating the Archives Does not include the cost of relocating the Archives

Is a Draft Budget really a Draft? Program, Budget and Finance committed to transparency: Program, Budget and Finance committed to transparency: link for comments link for comments ENS articlesENS articles President, House of Deputies deputy online forumPresident, House of Deputies deputy online forum Hearings at General ConventionHearings at General Convention