Woes of the District Budget!

The Connectional Budget may not be easy, but most rightly lament the size of the District Budget (plus). From presiding elder sheets, they land with pastors and church finance committees who pour over the items and grand total required at the designated reporting time. Like government taxes, most do not like Connectional or Episcopal District/AC/PE District assessments. Also like taxes though, some of these contributions are really necessary.

THE NEGATIVE SIDE
Many districts and annual conferences have not done a good job of apportionment. Demographic realities are often overlooked, and the ever changing condition of congregations can result in gross, destructive inequities. The burden is not equal.

In some places, the District/Annual Conference budgets equal or exceed the Connectional Budget. The unrealistic expectations of some churches cannot only discourage pastors/congregations, but also result in morale crushing delayed maintenance, cancelled ministries and ultimately, a total nonpayment of any denominational support.

The intentional fog around that which is mandatory or voluntary denies opportunity for self-adjustment. While some may cut an important voluntary item, like assistance for struggling congregations or disaster relief, others use the opportunity to say to the folks at the top, “we love you and want to, but we have already sacrificed and it just isn’t here.”

Our negative, uninformed views about assessments does not help. We sometimes act as though “our institution” can exist without funding. Just as governments need taxes to function, the church lives on the financial commitment of the faithful. Rather than blanket cries about what we cannot afford, we need to study what is truly happening with the District Budget with an eye to efficiency.

THE REALITY
It costs a lot to run a District. The categories suggest how fast the totals add up. Executive maintenance (housing, car, health and other insurances), Office Space (own or rent, not free), Clerical and logistical Personnel (yard/building maintenance & repair); these alone could be more that $200,000k depending on the size of the district. Those audits we demand: $10k+. Here is my favorite: $1,000-$1,500 for the District lawyer to tell the auditor there are no pending cases against the District! You would be shocked by the cost of those pretty, full color bulletins and booklets we leave on the chair: $1,000s not $100s. A large District may easily spend more than $50k on graphics and printing so we can “present.” Professional Fees (accounting other than auditing, legal, development); AND those Projects (colleges, seminaries, camps, etc.). In the blink of an eye, even a small district can generate a tab of $500k. This is all yet WITHOUT ANY “GIFT” TO THE BISHOP!”

Many have never seen their District’s Budget, let alone participated in the formation and approval of a budget. Greater transparency could lead to more acceptance of District/AC budgetary needs, and control excessive spending. Sometimes we need more than the cute summary on a PowerPoint. We need to see THE BUDGET to gain confidence that the folk in charge know what they are doing.

We need to demand a realistic budget with reasonable income and expense expectations. The day is coming when districts, like churches, will have to ask “can we meet the minimum financial requirements to exist, or must we close/merge?”

The lack of serious scrutiny of the budget at both the General Conference and the General Board is not an omen of hope.  The masses see themselves as helpless, and the will to do better has been deflated by sharp, political points. Episcopal gifting is a protected category while vital areas of ministry and administration are cut. A key is transparency in the process.

Some Conclusions

  1. If the people want a Bentley, show them the cost and let them pay without a fuss.  If an electric bicycle is closer to their budgetary appetite, let them claim it and ride with pride! Transparency!
  2. Accept that it costs to be a church.  Stop looking for someone else to pay a bill you made out of pride and excess. Embrace the costs!
  3. Stop lamenting Episcopal Compensation/Gifting if you are not going to do something about it.  You are wearing out yourself and people of goodwill inside and outside the church. No need in blaming the Connectional Budget when you are truly upset about an executive gift and/or unfair planning/distribution of a local budget.
  4. You want missions? Pay up.  You want evangelism/expansion? Give. You want social action/involvement? Contribute. You want to dance? Pay the drummer.  You don’t trust the process? Fix it or shut it down. Whining is so undignified for a child of God!
  5. District Budgets should be on every AC Agenda along with the District Audit. Take care of business with the laws on the books. One element of integrity is a realistic plan of church support and a mind to enforce the fair plan. As we “ooo and ahhh” Episcopal Gifting/Compensation/Support, let us look at the reality of institutional support.  If we are going to be a Church, we must pay whether or not we repair the breaches.  Otherwise, turn off the lights, lock the door, go in peace, and stop complaining.

Episcopal Compensation

One of the biggest mysteries, and exaggerations, in our Zion is: how much bishops receive! No one knows for sure except each recipient, and some of them do not know exactly how much they get because of the way the compensation and gratuities arrive. Be sure, it is less than you think and more than you can imagine. The following will give you an idea.

The Official Compensation from the Budget: Salary ($63,067), Travel ($21,022/2021-2024), Social Security Match, Annuity, & 403-B.

Bishops in Districts 1-13 may also receive (most, not necessarily all): Housing/Residence, car, & medical insurance. These benefits vary in Districts 14-20.

The “Extra” Compensation: Then there is the “Extra” Compensation which usually comes in the form of “gifts” from annual conferences, District Meetings (Midyear, Christian Ed, Planning, etc.), preaching honoraria, holidays, and unspecified. For reflection, these are organized into categories.

Minimum (no District among 1-13 pays less) – $ 75k Low – $150k – $200k Mid – $200k – $350k Mid/High – $350k – $500k High – $500k+

Districts 14-20: Two Districts “may” provide from $5k – $20k of extra compensation over and above what bishops may receive as honoraria preaching in the USA. Little to no additional compensation is available in five of the Districts 14-20.

Analytical Thoughts

  1. A bishop who serves in Districts 14-20 receives at least $50k per year less than every bishop in Districts 1-13.
  2. A bishop in District 1-13 in the low range makes less than half what a bishop in the high range receives.
  3. Adding the common salary to the “Extra Compensation” puts some bishops at earnings less than a few pastors and presiding elders across the connection.
  4. Guessing how high the total may be for a bishop is so inexact as to be useless. Some say 1 or 2 receive more than $1m per year. While I doubt that, I could be wrong.
  5. Thinking we could/should pay all of the bishops $150k, $250k or $300k per year would be a “cut” for at least 1/2 of the bishops in Districts 1-13. While the other 1/2 may welcome the increase, some of them have an eye on getting to a high end district one day…they will not support change. To pay all bishops more than $300k would be a real budget buster.

The General Resentment harbored over Episcopal Compensation is unfair to those in the low/none category. Too proud to admit it, a few bishops are just making it. As an example, I made $10k less per year in my first 4 years than I was making as a pastor at election. For nine years I was in the minimum group, and for three years through 2028, I am in the “below minimum” category where the compensation barely equals what I earned as a modestly paid pastor (less than $100k).

Folk are more fairly angered by those who receive more than $500k at a great sacrifice to the people they serve. The masses are frustrated when the District “extras” far exceed the Connectional Budget with properties deteriorating, disciples decreasing in number, and the laboring ox can barely find feed to be energized in the treading of the corn.

Until we are ready to hold bishops to the law (which means filing charges) and demand transparency with fiscal restraint at the annual conference level, standardizing compensation is just not going to happen. Even a few tweaks have no chance of adoption as we really lack will and courage to effect change. Some possibilities? 1. Shift 100% of Episcopal Compensation to the Districts (1-13). This would focus on true cost/benefit. Bishops should negotiate compensation with districts under the oversight of a connectional eye for fairness. 2. Mandate that all “in District” gifts and honoraria pass through a single portal. This will establish the truth in the total and provide for tax compliance. 3. Pay bishops in Districts 14-20 substantially more than the current common salary. $150-$200k would make it less burdensome for bishops to be assigned to Districts 14-20 AND it may be an added incentive for an indigenously elected person to want to remain in their indigenous region. 4. No bishop should be earning more than $500k or less than $150k. There should be both voluntary and mandatory standards to curb the excesses.

Desire for greater service; personality differences; influence/power mongering; conflicting perspectives on ethics, theology, ecclesiology; and, ego may drive some of the strife among the bishops. At the end of the day, don’t forget to look at the money!

In the next post I invite you to look more realistically at District Budgets.