Approve 2021 Budget for The Episcopal Church
Resolution text
Resolved, That the Executive Council approves the 2021 Budget for The Episcopal Church.
Explanation
Resolution ECEC-005 A Plan for Emergency Management of the Current General Convention Budget (2019-2021) https://extranet.generalconvention.org/governing_and_interim_bodies/executive_council/ resolution?id=197 adopted by EC on June 8, 2020, served as a road map in preparing the 2021 budget.
EC understands that due to the economic impact of Covid-19, dioceses, congregations, and Episcopal institutions are making tough budget choices about ministry, program, and staffing. The Council wants to offer relief, so the 2021 budget
- Continues to fully fund all granting programs,
- Continues fully funding block grants to dioceses within and beyond The Episcopal Church and to our Anglican and ecumenical partners
- Adds $1 million to the Assessment Waiver pool in hopes that dioceses will apply for relief, as needed (line 4a). These funds come from the projected triennial surplus, due in large part to the savings identified by staff in the 2020 budget.
- Projects a COLA for staff of up to 3%; percentage to be determined by management in consultation with the chair of JSC on Finance by the end of 2020 when the income picture might be clearer.
Income to the budget is based on a 15% assessment on dioceses and 5% draw on investments.
One of the Plan’s guiding principles is that expenses be reduced “in stages and only when necessary due to loss of income related to the Covid-19 pandemic and the resulting economic dislocation experienced by dioceses, congregations, organizations, and individuals.”
To date, DFMS has not experienced a loss of income, and as the Treasurer and FIN have reported, reserves are strong, and at this point there is a projected surplus for the current triennium. The draft budget reflects this current reality. And EC stands ready to adjust the budget throughout 2021, based on the Plan Guiding Principles and Strategies, should that reality change.
As Council was reminded through its 2020 budget adjustments process, the GC budget is a living document which can be adjusted as new information is received. In line with the Plan’s Guiding Principles, Executive Council is committed to exploring all aspects of budgeting, including rigorous scrutiny of all expenses and exploring all sources of funding moving forward.