Budget Process Overview
The budget process in the Diocese of Southern Ohio begins in late March, when the Budget Committee sends application forms to budget owners – the people responsible for each area of the operating budget. Each budget owner is asked to utilize zero-based budgeting to develop their requests: a process by which each expense is evaluated and projected based on the need for the upcoming year rather than as an adjustment of the previous year’s amount. Budget applications are due by May 1 each year.
Once it has received budget requests, the Budget Committee develops the budget in accordance with Canon XIII of the Diocese of Southern Ohio’s Constitution and Canons. As it does so, the Budget Committee confers with the Trustees and diocesan finance staff to ensure that the forecasts for income from congregational mission share, investments, and diocesan funds are accurate.
Once the Budget Committee has completed the budget, the Convention Budget is submitted to Diocesan Council for review and approval. Then it is submitted to the diocesan convention. Once the new budget is approved, the Finance Committee, along with Diocesan Council, oversees its implementation.
More than 41% of the income available to fund the diocese’s mission and ministry comes from congregations in the form of missions share assessments. Patrick Hreachmack, chair of the Budget Committee, emphasizes that the committee leaders and diocesan staff involved in the budget process want to work with congregations that may be experiencing sudden interruptions in income or unexpected expenses that might make it difficult to fulfill mission share commitments. Committee leaders are also available to assist congregations that have difficulty complying with diocesan financial reporting requirements. Contact information for each committee chair and staff member is available on the diocesan website.
2024 Budget Overview
For the 2024 budget, the amount of funds requested by budget owners represented an increase of 14.5% over the requests received for 2023. The Budget Committee was able to fund 84% of the requests submitted, creating a budget for diocesan programs and operations that is less than half a percent lower than in 2023.
The 2024 budget is structured in the same way as the 2023 budget and will provide for diocesan staff and programs to continue while Bishop-elect Kristin White learns about the diocese and has the opportunity to develop a vision for its future.
Highlights of the 2024 budget include:
- Funds released from the Bishop Ordination/Relocation Designated Fund will support our new bishop’s relocation to the diocese and ordination on February 17.
- The New Clergy Program and Placement budget has been increased to support seminarians who intend to return to the diocese for a residency or curacy period.
- Formation program expenses have been reassigned to the Faith in Life budget, allowing grants that support formation programs to be distributed by the Faith in Life Committee.
- The Latino Ministry budget includes funds to hire an experienced Latino priest to develop this area of the diocese’s ministry.
- Health insurance costs for staff are projected to rise 6.5% in 2024, and a 3% cost of living adjustment to staff compensation is budgeted.
The 2024 budget includes a modest increase in the amount of mission share income available to the diocese from congregations. The formula for calculating mission share contributions is based on operating income from the 2022 Parochial Report, so the 2024 numbers reflect a slight rebound in congregational income in 2022. Over time, however, we expect mission share contributions to continue decreasing.
W.C. Procter Fund and endowment income are calculated on a 12-quarter rolling average and fluctuate with market volatility. The 2024 budget shows a slight decrease in the amount available from these funds based on a 3.5% rate of draw for both the W.C. Procter Fund and 3.5% for the Endowment Fund, which is recommended by the diocese’s investment advisors. The Trustees will continue to monitor the effect of market volatility on these and other investment funds. 3
The 2024 budget also makes use of $946,551 drawn from various designated funds and endowed accounts. Those funds are detailed on page 1 of the budget spreadsheet.
The income available to support the Diocese of Southern Ohio in 2024 is shown in three columns on the budget spreadsheet:
- The Convention Budget, which includes Mission Share contributions from the congregations of the diocese; a 3.5% draw on the Endowment Fund of the Diocese of Southern Ohio (previously called 30 Funds (Consolidated Endowment Funds)); and other income and donations. The Convention Budget makes up 48% of the consolidated budget.
- The William Cooper Procter Memorial
- includes a 3.5% draw from this fund, which was given to the diocese in 1954. The W.C. Procter Budget makes up 38% of the consolidated budget, and according to the terms of the bequest, its use is restricted to expenses that meet four specific criteria.
- The Endowed and Other Funds Budget, which makes up 14% of the consolidated budget, and includes: A 3.5% draw on the Faith in Life fund, which supports formation expenses.
- A 2.8% draw on the Charlotte Elizabeth Procter Trust, which supports the salary and benefits of the bishop. As the Standing Committee announced in March, the bishop will receive annual initial cash compensation of $220,000, plus the income from a housing fund, which is about $9,000 annually at present. The cash compensation will be subject to cost-of-living increases, as set by the Standing Committee and Trustees. Under the new terms by which the Charlotte E. Procter Fund is managed, it, rather than the diocesan convention budget, will fund the bishop’s health care, dental insurance and other items pertaining to the office of the bishop. Once the new bishop’s letter of agreement is finalized, the amount of these other expenses will be approved by the Trustees and this line of the budget will be updated.
- The Bishop’s Residence Fund, the interest of which provides for the bishop’s housing allowance;
- A 3.5% draw on The Blanchard Fund, which supports Episcopal Community Ministries;
- Income from diocesan programs, and income released from designated funds held in reserve to support particular projects or events;
- Donations to Episcopal Community Ministries and New Hope Church
Mission Share Contributions
Each congregation in the diocese makes a contribution to the Convention Budget in the form of Mission Share. The amount each congregation pays is calculated using a formula approved by Diocesan Convention. The formula for 2022 through 2024 is available here.
The formula, which uses income and expense data submitted by each congregation on the Episcopal Church’s annual parochial report, is designed to provide an equitable way for every congregation to support the diocesan budget.
- In short, the formula tallies the total amount of normal operating expenses (Box E) and income (Box A) of every congregation in the diocese and calculates each congregation’s share of those amounts.
- The resulting “Share Ratio” is used to determine the percentage of the congregation’s normal operating income that it is expected to pay to the diocese.
- The congregation with the lowest ratio pays 4%, and the congregation with the highest ratio pays the most—14.5%. The median congregation pays 11.5%.
The diocese’s two congregations that share status with other denominations are assessed using a special formula.
In 2024, the diocese will invest $6.6 million in operations, formation, outreach, congregational ministries, and other programs and initiatives.
- $400,000 of this amount, drawn from the W.C. Procter Fund, is allocated to the Procter Camp and Conference Center.
- $300,000 of this amount, drawn from the W.C. Procter Fund, is allocated to the Church Foundation, which makes grants to congregations for capital expenses and emergency building repairs.
The diocese’s 2024 expense budget is organized in the same way as the 2023 budget, which was the first year for this structure. It includes six categories:
DSO Operations/Bishop’s Office
The budget for the bishop’s office will increase slightly in 2024. This area of the budget includes transition and relocation expenses for the new bishop, as well as a full year of salary and benefits for the bishop. We continue to budget for a Missioner for Black Ministries, a position that has been created in collaboration with the Reparations Task Force and that we hope will be filled in 2024.
- The 2024 budget includes $225,000 in funding to support the bishop transition and relocation and the ordination service scheduled for February 17.
- The facilities budget includes $100,000 toward the cost of an elevator modernization planned for the diocesan offices at 412 Sycamore Street in Cincinnati. The total project cost is estimated to be considerably more; additional funds will come from non-budget sources of income.
- The facilities budget also shows $20,000 in savings due to a new phone contract for the offices at 412 Sycamore Street in Cincinnati. The total project cost is estimated to be $275,000; additional funds will come from non-budget sources of income.
- The diocese’s 15% apportionment to the budget of The Episcopal Church is budgeted to be $438,582 in 2024. All dioceses in the Episcopal Church pay a 15% assessment on reported diocesan income for the year before last, less an exemption of $200,000.
This area of the budget includes $20,000 for the work of the committee planning the diocese’s 150th anniversary, which will be observed and celebrated in 2025.
Formation
This budget category consolidates the diocese’s focus on formation and represents 14% of the budget.
- Beginning in 2023, this area of the budget expanded to include the work of the Becoming Beloved Community initiative. As this area of the Formation Team’s work evolves in 2024 with the participation of the new bishop, it will be less dependent on outside contractors.
- The campus ministry budget includes funding for grants to campus ministry programs in Cincinnati, Columbus, Dayton and Athens, and a stipend for a convener.
- Across the formation ministry centers of the budget, program funding has been reallocated to the Faith in Life Committee’s budget so that grants that support formation programs can be distributed by the Faith in Life Committee.
- The budget continues to invest in the development of New Episcopal Communities, and in 2024, just over $80,000 is allocated for grants to new mission cohorts, worshipping communities, and other alternative communities grounded in the core values and practices of The Episcopal Church. This initiative seeks especially to reach campus communities and young adults.
Ordained/Licensed Ministry
The area of the budget that supports people in discernment for ordained ministry and seminarians will increase by 11.4%, to $270,131, based on the number of seminarians in their final year who plan to return to the diocese for a two-year residency experience. Although the diocese’s policy no longer requires seminarians to return, many of our newly ordained, or soon-to-be ordained, clergy wish to do so, and we are budgeting to make that possible.
Outreach and Ministry Support
Outreach and Ministry Support includes funds that the diocese provides to congregations and grants awarded to outside organizations. This accounts for 11.6% of the diocese’s budget. In 2024, the funds allocated for missioners have been reduced slightly based on the amount of funds spent in 2023 for missioners in the Columbus, Northwest and Southeastern regions of the diocese and for the River Churches. In addition, the funds allocated to Latinx ministry in past years have been moved from this budget group to the Congregational Ministries section of the budget. 7
Governance and Episcopal Church Membership
This area of the budget will increase by 35.3% in 2024 to pay for the travel and expenses of the bishop and deputies who will attend General Convention in Louisville, Kentucky in June. It also includes money to support resolutions of Diocesan Council that call for the diocese to fund Sustainable Development Grants.
Transitions & Congregational Ministry
This area of the budget will decrease slightly—approximately 2.8%—in 2024. It supports:
- La Iglesias Episcopal del Espíritu Santo, a congregation that serves mostly Latinx immigrants and their families in suburbs of Cincinnati. In 2024, the budget will increase to support hiring a full-time priest to lead the congregation, as well as to continue offering ESL classes and support community events and programs.
- New Hope Church, a congregation that serves the East Dayton community, and its church planter, the Rev. Emmanuel Tuyishime. In 2024, the congregation’s Christian Education programs will be supported by Faith in Life grants, and the funds for that ministry have been reallocated to the Faith in Life section of the Formation budget.
- The budget for the Finance Office’s support of parishes, which provides technical assistance in the areas of financial management and human resources, has been reduced slightly in keeping with demand and need for funds in other diocesan programs.
Download/print this budget narrative.
