Diocesan Profile » Finances

Preparing the Budget

For the past several years, the Diocese has used an inclusive process to develop the annual budget. Ministries, missions, canonical committees and administrative departments participate, as does the Bishop, Diocesan Treasurers, the Canon to the Ordinary and the Business Manager. The Diocesan Council drafts a budget that is then reviewed by the four regional deaneries, and after feedback is received, the Council formally approves the revised budget and submits it to the annual Diocesan Convention for adoption.

The operating budget does not include the two Diocesan limited liability corporations, Bosque Center LLC and Bishops Ridge LLC. Revenues and expenditures for these entities are captured in separate subsidiary budgets that are reported in the Consolidated Financial Statement of the Diocese.

Revenue Sources

Revenue sources

Total revenues projected for 2017 total $1,577,040. Not having extensive endowments, the Diocese depends heavily on Fair Share contributions to support its operations. As seen in the chart, 18% of revenues come from investments and endowments. These revenues are projected to decline further to only 8% of the budget over the next three years as one of the current supporting funds is exhausted.

To offset this projected decrease in revenues, an increase in the Fair Share contribution rate was approved by the 2016 Annual Convention. Starting in 2017, the rate for larger congregations is 15.5 percent, 14.5 percent for medium congregations, and 14 percent for the smallest. Future increases in the Fair Share rate may be required, as will efforts to increase income from the two subsidiary LLCs.

Projected Expenditures

Expenditures

Less than 33% of expenditures go to support Diocesan operations and general administration. Due to projected revenue limitations, efforts to control expenditures persist, while making every effort to support mission and outreach programs. The primary operating budget for 2017 reflects a surplus of approximately $28,000; however, an increase in contributions to deferred expenses creates a modest projected deficit of $37,000 for the year.

Those who are generous are blessed, for they share their bread with the poor. (Proverbs 22:9)