Delegates to Pennsylvania’s March 25 special convention rejected the budget proposed by diocesan council that would have drawn upon $950,000 of unrestricted net assets to fund the diocese’s programs. The approved budget reduces the draw to $550,000 and prohibits council from amending the budget unless approved by convention.
The Rt. Rev. Charles E. Bennison, Jr., called the single-issue convention to resolve a budget impasse that arose after the 2005 annual convention rejected a proposed $4.9 million budget.
Diocesan Council offered a $4.36 million budget. Convention substituted the proposed budget with a $4.15 million budget offered by a coalition called “Concerned Pennsylvania Episcopalians.”
The adopted budget reduces the number of diocesan staff by 40 percent, eliminating 10 positions by July 1, cuts the diocese’s communications and conference center budgets, and reduces the diocese’s contribution to the program budget of the General Convention by $225,000 to $525,000.
Seven of the 10 staff redundancies will occur at the Wapiti retreat center. The approved budget funds only the salary of the conference center’s executive director in a “minimal caretaker function.”
In addition to spending cuts, the approved budget resolution directed the diocese to audit past diocesan expenditures and directed council not to amend the budget without prior approval by convention.
On March 23, after meeting with Bishop Bennison the standing committee passed a resolution withholding its consent for the “use of proceeds from real estate or other current undesignated assets to meet the needs for the 2006 program budget.” Proceeds from any asset sale “will be needed to reimburse certain funds improperly spent” and to cover prior year’s deficits and as a reserve for legal expenses,” the committee said.
The Standing Committee also released a March 17 report prepared by two former diocesan controllers that cautioned Convention against approving the Diocesan Council’s budget. If a program budget funded by a $950,000 draw upon the diocese’s unrestricted net assets were approved, the report stated, the diocese would have to find nearly $3.7 million in cash to fund this deficit.
“Currently, it is believed we have at most $300,000 in available cash to fund the diocesan-wide deficit-less than 10% of our needs,” the report stated.
Discussion of the other business at the special convention, including the dispute between Bishop Bennison and the standing committee, was ruled out of order by the diocesan chancellor.
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