The Acts of Convention

House of Deputies

The House of Deputies Committee on Dispatch of Business moved the suspension of Rule 3.5.V for the seventh legislative day, in order that the House of Deputies Committee on Program, Budget and Finance Report #1 of Resolution A005 (Adoption of the Budget) could be made immediately following the Committee of the Whole.

Motion carried

Rules suspended

The Secretary announced that the House had reached the time certain for the Special Order allowing for a Committee of the Whole on Resolution A005.

The President explained the purpose of the Committee of the Whole and then invited the House to engage in informal conversation around their respective tables for fifteen minutes.

The President announced that the time for informal conversation had expired and announced the beginning of the second portion of the Committee of the Whole, which allowed for debate but not amendments or substitutions. Debate ensued.

The President announced that the time for debate had expired. The President then called on Deputy Pollard of New York and members of the House of Deputies Committee on Program, Budget and Finance to respond to questions from members of the House.

The President announced that the time for responding to questions had expired.

House of Deputies

The House of Deputies Committee on Program, Budget and Finance presented its Report #1 on Resolution A005 (Adoption of the Budget) and moved adoption of a substitute.

Original Text of Resolution

(A005)

Resolved, the House of Bishops concurring, that the 77th General Convention adopt the 2013–2015 Budget for the Episcopal Church as presented by the Joint Standing Committee on Program, Budget and Finance.

Committee Substitute

Resolved, the House of Bishops concurring, that the 77th General Convention adopt the 2013–2015 Budget for the Episcopal Church as presented by the Joint Standing Committee on Program, Budget and Finance.

1.0 The Budget for the Episcopal Church for the period January 1, 2013 through December 31, 2015, which shall be a unified budget including Canonical, Corporate, and Program (mission) portions, is adopted at a total of $111,546,000.00.

1.1 The Canonical portion, providing for the contingent expenses of the General Convention, the stipend of the Presiding Bishop and the expenses of that office, the expenses of the President of the House of Deputies, and Church Pension Fund assessments is adopted at a total of $ 20,125,000.00 as follows:

For the year 2013 $ 5,871,000.00

For the year 2014 $ 5,941,000.00

For the year 2015 $ 8,313,000.00

1.2 The Corporate portion, providing for the for the administrative support of the Domestic & Foreign Missionary Society offices, is adopted at a total of $33,997,000.00 as follows:

For the year 2013 $ 11,226,000.00

For the year 2014 $ 11,325,000.00

For the year 2015 $ 11,446,000.00

1.3 The Program (mission) portion, providing for support for the mission and ministry (restricted and unrestricted) of the Church, is adopted at a total of $57,394,000.00 as follows:

For the year 2013 $ 18,882,000.00

For the year 2014 $ 19,061,000.00

For the year 2015 $ 19,451,000.00

2.0 The funding policy for the period January 1, 2013 through December 31, 2015 is adopted based on a single Asking of the dioceses. After a $120,000 exemption from total income, a single asking shall be applied at a flat rate of 19% of the balance of income to the diocese, reported in the diocesan financial statements for the year two years prior to the year to which the pledge is applied [e.g.: 2013 Askings are to be based on 2011 actual income figures]. “Income” includes (1) all congregational giving to the diocese, (2) all unrestricted investment and endowment income to the diocese, (3) restricted investment and endowment income to the diocese which covers costs in the operating budget, and (4) other earnings from investments or enterprises. It is intended that income shall include revenues that fund normal operating and program expenses of the dioceses. It is not intended to include pass-through income that is used for expenses for programming that are simply administered by the dioceses, or that would not be otherwise funded by contributions from parishes or out of investment income.

2.1 We rejoice with dioceses that have moved toward, and those that give at and above 19%. Such giving creates a strong financial basis for vital mission and witness of the Episcopal Church. We encourage all our dioceses to adopt the 19% Asking; then we could allocate an additional $8.2 million dollars each year toward fulfilling the mission priorities which we have embraced in this 77th General Convention.

2.2 For the budgetary period income from diocesan commitments, totaling $73,500,000.00 is anticipated as follows:

For the year 2013 $ 24,752,000.00

For the year 2014 $ 24,507,000.00

For the year 2015 $ 24,241,000.00

2.3 For the budgetary period 2013-2015, payment by the dioceses of the Askings shall be made in twelve equal monthly payments.

2.4 All additional income, other than from the Askings of the dioceses, totaling $38,046,000.00, is projected as follows:

For the year 2013 $ 12,292,000.00

For the year 2014 $ 12,292,000.00

For the year 2015 $ 13,462,000.00

2.5 A General Ordination fee is hereby authorized, which fees shall be added to the funding from dioceses and applied to the expenses of examination as appropriated in the budget. A candidate for Holy Orders eligible for examination and so certified by the diocesan bishop shall not be disqualified for examination because the fee has not been paid.

2.6 General Convention registration and exhibitors fees are hereby authorized, which fees shall be added to the funding from dioceses and applied to the expenses of the 2015 General Convention, and for no other purpose.

3.0 In the exercise of their respective authorities, the Executive Council of the General Convention and the Joint Standing Committee on Program, Budget and Finance shall be subject to the following policies:

3.1 Each year, the Executive Council, with the advice of the Joint Standing Committee on Program, Budget and Finance, shall adjust the budget to the assured income of the Executive Council so as to carry out the Budget for the Episcopal Church for that year on a balanced budget basis.

3.2 The fiscal year shall begin January 1.

3.3 If in any year the total anticipated income for budget support is less than the amount required to support the budget approved by the General Convention, the Canonical portion of the Budget for the Episcopal Church shall have funding priority over any other budget areas.

3.4 Undesignated bequests and legacies received during the budgetary period shall be set aside in the general endowment fund of which only the income shall be used for the general purposes of the Society.

3.5 Designated bequests and legacies received during the budgetary period shall be set aside in specific funds of which only the income shall be used for the purposes so designated.

3.6 Each Committee, Commission, Agency and Board (CCAB) proposing to the General Convention any resolution with funding implications shall present to the Standing Committee on Program, Budget and Finance a detailed budget in support of its plan(s), including cost estimates from contractors and suppliers for all goods and services, by no later than six months before the opening day of the General Convention

3.5 Subsequent editions of the Report and Proposal of the Presiding Bishop and Executive Council to the General Convention contain the following information for each year of the preceding triennium:

• A description of the actual income and expenditures of the DFMS, relating the expenditures to the Church's priorities with accompanying narrative.
• Endowment balance and total investment return, with accompanying narrative.
• Posting of this report on the DFMS website when it is released to the Bishops and Deputies.

Deputy Russell of San Diego moved to amend the resolution.

Proposed Amendment

Reduce line 380 by 25% to $41.2 million.

Deputy King of Western New York moved the previous question.

Motion carried

Debate terminated

A vote was taken on the amendment.

Motion defeated

Amendment defeated

Deputy Miller of Southern Ohio moved to amend the resolution.

Proposed Amendment

Add $500,000 to income line item 20 (p.1), misc income & and add $500,000 to expense line item 50, digital communications (p. 2).

Deputy Hart of Pennsylvania moved the previous question.

Motion carried

Debate terminated

A vote was taken on the amendment.

Motion defeated

Amendment defeated

Deputy Harris of Delaware moved to amend the resolution.

Proposed Amendment

Add after line 96, “No Committee or Commission may seek funding from sources outside the budget without express permission of Executive Council.”

Deputy Ross of Michigan moved the previous question on the amendment and the main motion.

Motion carried

Debate terminated

A vote was taken on the amendment.

Motion defeated

Amendment defeated

A vote was taken on the main motion.

Motion carried

Substitute resolution adopted

(Communicated to the House of Bishops in HD Message #209)