Financial Needs for 2003
Joe Ferrell, Finance Committee Chair

Although the vestry has not yet formally begun to develop budget priorities for 2003, it seems likely at this point that the focus will be on sustaining our current programs and outreach while beginning the exciting journey toward establishing a new Episcopal congregation in Orange County.

The new Orange County Mission effort is the charge of the Rev. Lisa Fischbeck who joined the clergy staff of the Chapel of the Cross on September 16. Funding for the mission’s first three years has been secured by $100,000 set aside by the Chapel of the Cross from undesignated gifts and bequests and from funds contributed or pledged by the Church of the Holy Family; St. Matthew’s, Hillsborough; St. Stephen’s, Durham; and the Diocese of North Carolina. The mission will have no impact on our 2003 operating budget and none is anticipated before 2005 at the earliest.

Next year’s operating budget will be affected both by anticipated increases in expenditures and by anticipated reductions in non-pledged income. For the past two years, the vestry has chosen to transfer the entire yield of the Buildings and Grounds Endowment to the operating budget to enable expansion of our lay staff. This seemed appropriate in view of the fact that we had been able to address a large backlog of deferred maintenance from unusually large undesignated gifts and bequests. It now seems prudent to begin to accumulate endowment income for future capital needs and major maintenance costs rather than spend it for current operating costs. If the vestry decides on that course of action, the net reduction in revenue available to the operating budget would be $25,000. Also, actual experience through August suggests that the vestry should reduce its 2002 estimates of other non-pledged revenue by at least $20,000. The net effect is the likely need for an additional $45,000 in pledged income just to generate the revenue stream needed to maintain the status quo.

Anticipated increases in expenditures could come to as much as $112,000. Among them are:

- an $8,000 increase in our share of the diocesan budget;
- $24,000 to fund the Christian education director’s position for a full 12 months;
- $18,000 for a modest 3.25% cost-of-living salary increase for our clergy and lay staff;
- as much as $14,000 for increased health insurance costs if premiums increase by 25% as many analysts predict;
- $7,200 to fund our pension commitment to our retired housekeeper, Doris Cotton;
- up to $20,000 to fund predictable increases in program support and physical plant costs; and
- at least $16,000 to address needs that were identified last year but did not receive funding.

The bottom line is that we need to increase our pledged giving to the mission and ministry of the Chapel of the Cross by at least $150,000. That is approximately 15% of last year’s total canvass, including the second asking that enabled us to fill the vacant Christian education director position for the last six months of the year.

In times of financial stress it is tempting to focus on what we lack rather than to give thanks for all that we have. Let’s look at our glass as almost full and fill it to the brim. Bishop Curry has challenged all of us to "Go. Make Disciples. Make a Difference." We have the resources to do that if we will. Let’s rise to the challenge.