Diocesan Operating and Missionary Budgets

Download 09 Budget

Totaling over $9 million, the annual funding of the work of the Episcopal Diocese of Texas is divided into an Operating Budget and a Missionary Budget to provide our congregations with the highest standard of accountability and transparency.

The diocesan operating budget provides the resources for the canonical requirements of our common life. Though this budget we fund the compensation of our bishops and diocesan staff, the work of the diocesan center office and support of other administrative functions such as our monthly newspaper The Texas Episcopalian. Most significantly, about fifty-percent of this budget pays for the health insurance coverage for all clergy canonically resident in this diocese and their dependants. Our churches support this budget through their mandatory diocesan assessments. In addition, this budget also receives a portion of its funding from grants and reimbursements from our diocesan foundations.

Our Missionary Budget is entirely comprised of our congregations’ voluntary contributions to the missionary work of the diocese. Through this budget we fund the support mission congregations of the diocese, our college work, diocesan support and outreach ministries and cooperative projects developed by our churches working in concert with one another. Over the last decade we have seen tremendous growth in this budget stemming directly from the involvement of our churches in determining how each ministry is supported through Mission Funding.

Calculating the Assessment

The Diocesan Assessment is comprised of two components: 1) the Total Operating Revenue of your church from the last year’s reported Parochial Report and 2) the estimated total medical insurance expense for the forthcoming year. The calculation is summarized as follows:

Part I – The Base Factor

The Total Operating Revenue is multiplied by a percentage factor, which is based on the revenue size of the church. This total now becomes the Base Factor.
The Base Factor is assessed so as not to increase or decrease more than 10% of the prior year’s Base Factor, BUT UNDER NO CIRCUMSTANCES to be less than 10% or more than 20% of Total Operating Revenue.
If it does change more than 10% of last year’s rate, it is capped and the cap will become the current year Base Factor.
For 2008, this figure is then divided 32.6% for Part I of the Assessment, and 67.4% for the Missionary Asking.

Part II – The Medical Factor

The Total Operating Revenue (TOR) for all churches is summed together. Mission churches' TOR is limited to 75%.
The TOR for your church is then divided by the total for all churches to obtain the percentage factor for your church.
This percentage factor is multiplied by the estimated total medical insurance expense for the forthcoming year. This figure is the Medical Assessment Factor.
This amount is added to Part I calculated above for the total Assessment.

Notes

The Medical Factor, for most churches, is slightly higher than the Part I rate, due to the cost of insurance in America.
The Medical Assessment does not consider the number of clergy members at your location. This figure is an allocation based on your church’s revenue, and is enabling coverage to retired clergy, dependents, and to smaller churches who might not be able to cover the medical insurance on their own. Therefore, yes, larger churches are helping to fund smaller churches and retired clergy members.
Clergy members are required to use the insurance through the Diocese, provided by the Medical Trust. There is no provision to not use the insurance and rely solely on a spouses’ insurance. This does not save the Diocese money, and is for your clergy’s protection.

For questions contact Mona Crowley, Controller at 713.353.2139.

Examples

2008 estimated medical insurance to cover: $4,510,500 (includes group health coverage and insurance reserve, which covers mental health assessments and miscellaneous medical needs).

Total Operating Revenue of all churches $67,208,273

Church Size and Factors Part I - Base Part II - Insurance

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Large Church:

Total Operating Revenue $600,000 $600,000 $ 600,000 Div by

Multiplier Factor: 16.75% X .1675 $ 67,208,273

Prior year Base Rate = $100,000 $100,500 not exceeding = .0089275 Factor

10% of last year X $4,510,500

X .326 $ 40,267

$ 32,763

Total Assessment $32,763 + $40,267 = $73,030

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Medium Size Church:

Total Operating Revenue $220,000 $220,000 $ 220,000 Div by

Multiplier Factor: 15.75% X .1575 $ 67,208,273

Prior year Base Rate = $30,000 $ 34,650 does exceed = .0032734 Factor

10% of last year X $4,510,500

Cap at 10% over prior year $ 33,000 $ 14,765

X .326

$ 10,758

Total Assessment $10,758 + $14,765 = $25,523

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Small Church:

Total Operating Revenue $100,000 $100,000 $ 100,000 Div by

Multiplier Factor: 15.25% X .1525 $ 67,208,273

Prior year Base Rate = $18,000 $ 15,250 less than = .0014879 Factor

10% of last year X $4,510,500

Cap at 90% of prior year $ 16,200 $ 6,711

X .326

$ 5,281

Total Assessment $5,281 + $6,711 = $11,992

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Mission:

Total Operating Revenue $50,000 $ 50,000 $ 50,000

Multiplier Factor: 14.75% X .1475 X .75 *

Prior year Base Rate = $7,000 $ 7,375 not exceeding $ 37,500 Div by

10% of last year $ 67,208,273

X .326 = .0005580 Factor

$ 2,404 X $4,510,500

$ 2,517

Total Assessment $2,404 + $2,517 = $4,921

* Note: Missions Total Operating Revenue is assessed at 75% for the Medical Assessment.