Budget discussion

James Kalustian, treasurer of the Diocesan Council, joined by fellow member Papken Megerian, discussed the budget.

In 2006, the Diocese ended with a $164 million surplus, which included a $200 million accrual related to an estate. Expenses were consistent with the 2005 actual and 2006 budget. The Archbishop’s Annual Appeal 2006 met its goal, but there were fewer donors giving larger gifts. “That is one concern we will be working on as we go forward,” Kalustian said.

For the 2007 budget, Kalustian said the proposed revised 2007 budget included some adjustments for change for the better. The reason for the revised budget is because the Council decided to delay a few of the proposed hires, making the new budget $1.06 million less than last year’s budget of $5.8 million. There are three areas with most of the reduction: consulting fees, reduction in the number of development staff needed, and scaled back growth in center rental fees. Additionally, rather than hire five regional program coordinators, the Council sees hiring one in 2007 and two in 2008.

Delegates accepted the changes to the 2007 budget.

The proposed 2008 budget sees expenses grow slightly from $4.8 million to $5.1 million, partially because of the hiring of a regional program coordinator and increased costs for items such as heating and insurance. Also built into the budget is the establishment of a defined contribution program for clergy to invest in for retirement, and have funds matched from their parishes. The Diocese will cover the administrative costs of this program.

Delegates asked the Council to look into providing long-term disability plans for the clergy. Also, they asked the Council to explore making matching retirement contributions for staff.

Asked about proposed increase in facilities rental income, Kalustian said that comes from the possible catering use of the St. Vartan Cathedral plaza which would also boost rental of the existing halls.

Posted by Jake at May 4, 2007 05:29 PM