The Executive Council, which met in Portland, Oregon, also called for the establishment of a task force "to look at steps and strategies necessary to achieve a balanced budget in 2008 and 2009" without increasing the payout ratio or drawing down reserves.

Josephine Hicks, chair of the Administration and Finance Committee, (Diocese of North Carolina) said, at a press conference, that the task force would probably not be seeking enforcement powers, but rather ways to contact affected dioceses and engage them in conversation about ways in which their lack of participation harms the ability of the church to complete its mission plans.

The shortfall is larger than the $820,000 predicted when the budget was approved, in June, by General Convention. It is due directly from lower diocesan commitments from the dioceses of Newark, Pennsylvania and Southwest Florida, which accounted for most of the reduction.

The only other choice was to cut the budget for mission work. That was not an option, said Hicks.

Treasurer and Chief Financial Officer, N. Kurt Barnes, told the council that, while he generally supports leaving the payout rate at 5 percent in order to protect the endowment funds against "de-capitalization," the funds can withstand a one-year increase. Assuming the current 3.2 percent rate of inflation, the fund could withstand a 17 percent loss and still be able to make a 5 percent payout in 2008 from the income, he said.

Some anticipated income from the rental of two and a half floors of the Episcopal Church Center will not begin in 2007. The Church Center is currently negotiating with a potential tenant for occupancy in 2008.

The Rev. Emmanuel Sserwadda, interim Africa officer, will not be made full-time at any time in the near future because the executive council needs to trim more than $200,000 in personnel costs at the Episcopal Church Center in order to balance the 2007-2009 budgets.

During the 2007-2009 triennium, The Episcopal Church will spend $13.3 million in support of overseas partnerships and covenants. That amount includes, among other budget items, $6.1 million in support of 12 overseas dioceses with current or past ties to The Episcopal Church and $5.2 million in overseas covenant payments to three autonomous provinces of the Anglican Communion.

Mexico, the Philippines, Central America and Liberia were part of The Episcopal Church. All but Liberia are now autonomous provinces and sent primates to the recent meeting in Dar es Salaam, Tanzania. As part of the negotiations, which led to their autonomy, The Episcopal Church agreed to provide annual grants, over a period, which varies by province of between 10 and 40 years. Over the next three years, the Province of Mexico will receive $1.5 million, the Philippines will receive $466,670 and Central America will receive $2.6 million. Liberia is not an autonomous province, but will receive $645,000.

Some of these provinces have struggled as the multi-year covenant grants call for the annual grant payments to decline, as the termination of the covenant agreement nears. In the case of Liberia, the payments have continued after the covenant agreement expired. The covenant agreements negotiated earliest tend to be for the shortest periods of time, prompting the Rev. Ian Douglas of Massachusetts to ask about "covenant creep."

"If we say one thing on paper, another for the purpose of the budget, and in practice do a third thing, I'm wondering if we don't need to revisit the whole idea of covenants," he said.

The Rev. Mark Harris of Delaware said the overseas covenant relationships should not be considered outreach, but integral to the identity of the Domestic and Foreign Missionary Society.

HOMOSEXUAL EPISCOPALIANS

The Executive Council has sought to reassure Homosexual Episcopalians. The primates' ultimatum, to end same-sex blessings and the consecration of homosexual candidates for bishop, did not sit well with the church's liberals. The Executive Council approved three resolutions in support of sexual minorities.

The first was to postpone public debate on the requests made of The Episcopal Church in the Feb. 19 communique until its June 2007 meeting.

Resolution NAC-009 reaffirmed the Church's commitment to human rights for homosexual persons. The council quoted from the Windsor Report, which stated in part "any demonizing of homosexual persons, or their ill treatment, is totally against Christian charity and basic principles of pastoral care."

Resolution NAC-014 urged the Joint Standing Committee on Planning Arrangements not to propose, for General Convention's approval, a site for the triennial meeting, which is located in a state that prohibits domestic partnerships.

During this time, several executive council members have expressed anger and dismay about a proposed Nigerian law that would prohibit advocating for civil rights on behalf of homosexuals in that country. Many consider the proposed law, which appears to have the backing of the Anglican Church of Nigeria, to be as egregious a violation of the Windsor Report as anything that the 75th General Convention did or did not do.

In response, Resolution NAC-020 asks The Episcopal Church to help in the resettlement of persecuted lesbian, gay, bisexual and transgendered persons. A supplementary handout, included with the approved resolution, contained a statement of concern about the proposed Nigerian law from the United Nations.

Toward the end of the final plenary session on Sunday afternoon, several council members expressed dissatisfaction with the choices presented to The Episcopal Church in the primates' Feb. 19 communique as well as with the lack of reassurances to gay and lesbian members in a draft statement to the church on the council's work during the meeting.

It is apparent that the Executive Council sees no relationship to declining diocesan income, dipping into endowments, departing Episcopalians, an unbiblical sexual agenda and The Great Commission.

END