C028 Adjusting Assessments for Mission
Resolved, the House of Bishops concurring,
That the 81st General Convention approves an assessment formula (Canon I.4.6.b) for the period January 1, 2025 through December 31, 2027 based on a single assessment of each diocese. In each year, 2025-2027, the diocesan total adjusted operating income, as reported in the annual diocesan financial report (Canon I.4.6.j and Canon I.6.4) for the year two years prior to the year to which the assessment is applied [e.g., 2025 assessments are to be based on 2023 actual income figures], shall be reduced by a $200,000 exemption. A single assessment shall be applied to the remaining amount (balance) at a flat rate of 13.5%; and be it further
Resolved, That the 2025-2027 Episcopal Church budget shall be adjusted and managed as set forth in the Canons, Rules of Order, and Executive Council policies and procedures; and be it further
Resolved, That the 81st General Convention of the Episcopal Church asks Executive Council to set a plan for lowering the diocesan assessment to 10% by 2030.
Explanation
This resolution calls for action to be taken by the 81st General Convention to lower diocesan assessments and asks the Executive Council of The Episcopal Church to do the hard and discerning work of planning for the future of our Church. This work includes determining what programs and resources are most necessary to our common life and what best empowers each of our local ministries for mission in their communities.
The first and second resolves to be submitted to the General Convention are modifications of the adopted Resolution A228 of the 80th General Convention, which set the 2023-2024 budget for The Episcopal Church. The present resolution decreases the assessment rate from 15% to 13.5%, leaving more funds available at the diocesan level for local mission and ministry. The third resolve calls for a two-triennium plan to be created by The Executive Council to reduce the assessment rates to 10%.
With over $600,000,000 in trust assets, The Episcopal Church (DFMS) has a $50,000,000 annualized budget. Based on Line Item 9 of The Episcopal Church’s approved budget, Diocesan Commitments make up over $28,000,000 of that amount. That amount is 15% (the previous assessment rate) of $192,000,000. This means that over 20% of all DFMS and diocesan expenditures each year ($242,000,000) are done at the DFMS level, which we think is an unsustainable proportion given the current state of our Church.
In our diocese, there are underfunded churches in rural, suburban, and urban contexts. In many of these communities, The Episcopal Church may be the only church that fully welcomes all persons. Ministering on these margins requires local and diocesan financial resources for viability. The more resources are centralized at higher levels of our church structure, the fewer remain for ministry among the marginalized communities our congregations serve.
Many organizations are currently reconfiguring toward sustainability for future generations and it is imperative The Episcopal Church do the same. It is out of love for The Episcopal Church, its ministry, history, and future, that we submit this resolution.