Budget woes plague Episcopal diocese

By Steph Wiechmann

The Episcopal Diocese of Southwestern Virginia faces a severe budget crisis in 2006, a major concern as the diocese plans to meet for its annual convention this weekend. Its financial situation may spell trouble for a diocese-owned summer camp and education center that will be cut out of this year's expenses.

The diocese comprises 57 churches, including R.E. Lee Memorial in Lexington. On the agenda of the 87th Annual Council, scheduled for Friday through Sunday at the Hotel Roanoke, is a proposed budget with a $137,000 deficit.

In an undated message on the diocese’s Web site, Bishop F. Neff Powell calls the budget “the most challenging we have faced for many years.”

“We anticipated a $36,000 increase in giving from churches,” Powell said, “but instead received a decrease of $101,000 resulting in a tremendous gap of $137,000.” That gap is roughly 13 percent of the total budget.

In an interview with The Rockbridge Report, Powell said that last year the diocese asked the parishes for a “slight increase” in their yearly gifts. However, at year’s end, those contributions came up short.

Of the eight parishes that decreased their pledges, Powell wrote that the largest decrease was from St. John’s parish in Roanoke, the largest contributor to the diocese. According to the diocese’s proposed budget for 2006, released on Jan. 9, St. John’s congregational pledges have dropped 59 percent, or $106,948, from last year.

St. John’s has had a rocky year because of controversy within the church leading to leadership changes and a drop in contributions. Its rector, the Rev. Bob Beasley, left the parish in May after his leadership style and views on controversial issues created tension between parish leadership, Beasley, and members of the church.

In the summer of 2003, the Episcopal Church’s General Convention consecrated Gene Robinson as bishop of New Hampshire, making him the first openly gay bishop in the church’s history. With Robinson’s appointment, the convention effectively endorsed same-sex unions -- a move that angered conservative Episcopalians and some members of St. John’s congregation. According to The Roanoke Times, Beasley supported Robinson’s promotion and the blessing of same-sex unions within the church.

Powell said that there is no official diocese position on homosexuality and he has not authorized blessings on same-sex unions. "They [priests] should consult with me and consult with leadership before they take action” he said.

Faced with a rector who did not reflect everyone’s views, some members of St. John’s congregation decreased their annual contributions. During the same period, The Roanoke Times reported a 13 percent drop in attendance at Sunday morning services.

The diocese has had to look hard at its budget because of the lack of income and what to do to combat the large deficit. In Powell’s message, he specifically mentions that the diocese is considering “eliminating support to Phoebe Needles Center immediately.”

The Phoebe Needles Camp and Conference Center is a diocese-owned retreat center in Franklin County, just outside of Callaway. The property is used for retreats, conferences, and summer camp.

This year, the center will be part of the Franklin County educational system as it begins to host an alternative education program for the district. Students expelled from area schools will use the center to continue their studies.

The Rev. John Heck, rector of St. Peter’s in Callaway, serves as the center’s director. According to this year’s proposed budget, the diocese will continue to fund the director’s salary, but will not contribute to any of its operating costs. The center will be financially strapped without support from the diocese, said Heck.

Heck said the center gets 25 percent of its financial resources from the diocese. All other support, according to its Web site, comes from contributions from individuals, businesses, civic organizations and grants from foundations.

The center is currently in the middle of expansion and renovation projects. Phoebe Needles may be able to fund a planned sewage treatment facility, but plans for a new lodge building and renovations to the original school building may have to be postponed.

“That’s about three years off, unless money falls out of the sky,” said Heck.

In addition to cutting support to Phoebe Needles, the diocese is considering one more option. It has secured a $114,000 line of credit to help with the overall deficit, though using the money is a last resort for Powell. In his Web site message, he wrote, “The Executive Board has committed to work to raise the difference by year-end so we pray we will not have to borrow from the line of credit.”
 

The Episcopal Diocese of Southwestern Virginia

The Phoebe Needles Center

The 87th Annual Council Agenda
 

 

Produced by Washington and Lee journalism students.

Lead supervisor:      Prof. Claudette Artwick

Reporting supervisor: Prof. Doug Cumming

Editing supervisor:  Prof. Pamela Luecke

Technical supervisor:  Michael Todd