2) Several of you have begun to hear whispers of the financial challenge that the diocesan ministries will be facing in the year ahead. The impact of our nation’s economy has impacted all of us and will contribute to a significant tightening of all of our budgets.
The unique challenge facing our diocesan ministries are twofold:
First, 30% of the diocesan budget is funded by investment income. We have been able to develop new and innovative ministries during the times of growth in our investment portfolio. These, as we all know, are difficult times for such income resources. Our income will be greatly reduced.
Secondly, the diocese took out a sizeable loan to buy properties on the gulf coast for the rebuilding of the congregations following Hurricane Katrina. When the original beach front properties are sold the loan will be repaid. Until such sale we are liable for a substantial interest payment. Until now, we have been able to pay the interest from contributions for post-Katrina recovery. Those funds are now depleted.
I have made the decision, and will ask the Executive Committee to concur, that to be “one church” means that we are willing to bear one another’s burdens. To ask any of these three churches to assume their share of the indirect payment would be to crush them as they seek to recover and rebuild. Thus, I am prepared to make the necessary sacrifices within our common life and ministries to give these congregations relief from the unsustainable debt burden until their properties are sold.
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