Resolution C:
Amendment to Canon XVIII 18.02. Support of the Diocesan Operating Fund

Resolution Text:

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Sec. 18.02. Support of Diocesan Operating Fund.

(a) It is the unqualified obligation of the Cathedral and each parish and organized mission in union with the Convention of this Diocese to provide its proportionate share of the expenses of the Diocese as set forth in the budget for the Diocesan Operating Fund adopted by the Diocesan Convention.

(b) Such proportionate share of expenses not otherwise provided by endowment income, grants and other sources shall will be assessed upon on the Cathedral and each parish and organized mission in proportion to its total annual operating income as recorded in the financial section of the annual parochial report of each such parish and organized mission, except as modified below assessable funds, calculated as follows:

(i) Excluding any amounts received by an organized mission from the Diocesan budget through the Congregational Development Committee; Assessable funds are defined as the “Normal Operating Income” reported in the most recent annual parochial report, consisting of (a) plate, pledge, and other unrestricted contributions to the general support of the congregation; (b) investment income used for operations; (c) other operating income used for day-to-day operations; and (d) unrestricted bequests used for operations. Assessable funds do not include (e) assistance from the Diocese for the congregation’s operating budget; (f) restricted gifts to capital funds; (g) additions to endowment and other investment funds; (h) contributions to outreach and mission programs; or (i) donations or offerings received for transmittal to other religious or nonprofit organizations. When applicable, assessable funds will be reduced by the total compensation and benefits (including pension assessments) for any new professional programmatic staff position created by a parish or mission, subject to the phased exclusion schedule described in subsection (iii) below. The definition of assessable funds is governed by this canon and will not be altered by changes in the format or terminology of the churchwide parochial report.

(ii) In the case of the Cathedral, “total annual operating income” shall be assessable funds are all amounts received through pledges by the Cathedral congregation in the fiscal year covered by the most recent annual parochial report; and

(iii) In the event that a For any parish, or an any organized mission (with the approval of the Congregational Development Committee and the Bishop), that create creates a new full– or part–time position which has a scope of responsibilities solely devoted solely to the professional, programmatic life of said the parish or mission (as opposed to clerical administrative, janitorial, or non-programmatic responsibilities), the calculation of income of said parish or mission for purposes of the Diocesan assessment shall not include the total compensation plus related employee and benefits for said that employee will be excluded from the assessable funds calculation as follows: 100% exclusion in the first two and secondyears of his or her employment,; 50% of said cost exclusion in the third year,; and 25% of the costexclusion in the fourth year. This subsection shall be is limited to the equivalent of one full-time employee per congregation; it shall does not apply to the Cathedral.

(c) Assessments under this section shall will be assigned to each parish and organized mission on a graduated basis, so that units congregations having a lower total operating income assessable funds will be assessed a lesser percentage of their total operating income assessable funds. The Finance Committee shall must recommend to Diocesan the Convention each year a schedule of two or more levels of total operating income assessable funds and corresponding percentages of such income as the basis for assigning assessments to each parish and organized mission. Such That schedule shall will be effective for assessments for the ensuing year, unless modified by resolution of Diocesan the Convention.

(d) If a parish or organized mission fails to pay its full assessment for the twelve full months immediately preceding Convention, the voting privileges of its Delegates to the Diocesan Convention may, at the discretion of the Bishop, be suspended in proportion to the unfilled obligation, provided that no such suspension shall result in reducing the voting representation of any such parish or organized mission below one Delegate.

(e) Any proposed amendment to the Canons concerning support of the Diocesan Operating Fund or the methodology for Diocesan assessments shall be submitted to the Finance Committee on or before the first day of April. The Finance Committee shall consider the potential effect of the proposed amendment on the Diocesan Operating Fund and the operations of the Diocese, and report its conclusions to the Diocesan Convention, prior to any vote on the proposed amendment.

Proponent’s Explanation

The proposed amendment to Canon 18.02(b) is intended to preserve the Diocese’s longstanding approach to calculating assessments, not to introduce a substantive change. Historically, the Diocese has relied on the “Normal Operating Income” line of the parochial report as the basis for determining assessable income. However, recent changes to the financial section of the parochial report have altered or eliminated categories that previously aligned with our canonical language and assessment methodology.This amendment is designed to restore clarity and continuity by codifying the definition of “assessable funds” in a way that tracks the traditional understanding of “Normal Operating Income” as it has been used in diocesan practice. It ensures that the Diocese continues to assess congregations in a manner consistent with past practice, while providing transparency and alignment with the current reporting structure.The amendment also retains existing provisions regarding exclusions for new programmatic staff and the special treatment of the Cathedral, ensuring that no substantive policy changes are introduced.

Submitted by:

Christopher Hayes, Chancellor of the Diocese and Canon to the Bishop.