Task Force on Assessment Review

The Task Force on Assessment Review was charged by the 1999 Diocesan Convention to work over a three-year period to study how revenue is raised in the Diocese of Maine and to ultimately make recommendations about how it might be raised in the future.  The Task Force proposed three resolutions (the fourth would be to keep the current 17.1 percent assessment rate) to come before Diocesan Convention on October 25 at the Bangor Civic Center.  After the options were presented a straw poll was taken with results posted during the lunch hour.  After lunch time to debate the options was allotted.  Approval of the 5% on the First $10,000 was passed on the first vote. Available below is the description and spreadsheet that illustrate the impact the formula on congregations in the diocese and a transition plan for 2003.

October 2002 report from Interim Chair Maribeth Barney

A Letter for Spring 2002 from Chairman Ralph Moore

Chairman Ralph Moore's 2001 report

April 2001 Statement from the Task Force

Text of 1999 Resolution /  Chairman Ralph Moore's 2000 report /

Task Force members 

Assessment review process transforms members…

Four proposals for how the Diocese raises money to be presented at Convention

"Do not be conformed to this world, but be transformed by the renewing of your minds, so that you may discern what is the will of God—what is good and acceptable and perfect. For by the grace given to me I say to everyone among you not to think of yourself more highly than you ought to think, but to think with sober judgment, each according to the measure of faith that God has assigned. For as in one body we have many members, and not all the members have the same function, so we, who are many, are one body in Christ, and individually we are members one of another. We have gifts that differ according to the grace given to us: prophecy, in proportion to faith; ministry, in ministering; the teacher, in teaching; the exhorter, in exhortation; the giver, in generosity; the leader, in diligence; the compassionate, in cheerfulness." —Romans 12

Over the three years spanning the Task Force on Assessment Review’s (TFAR) work, we have come to a better understanding of the sentiments of Romans, and have embraced them as our own. In our early meetings, a number of us couldn’t imagine how it could possibly take us three years to fulfill our mission. It was apparent we had among us financial wizards, people with oodles of experience with numbers, formulas, and diocesan operations.

But, as we began to talk about the information, numbers, and formulas in front of us, little pieces of our oneness emerged. Opinions were shared and challenged. Stories were told, and myths were dispelled. We realized that we needed to talk to more people and listen to their opinions and stories. We discussed the idea of area meetings long before they became a reality. As we heard more, we learned more, and the words from Romans became real to us.

We are, indeed, one body. The Diocese is not in a building in Portland, it resides within us. Each one of us carries it with us wherever we go, and we represent the Diocese in whatever we do. It became clear to us that whether small or large, north or south (or east or west), rich or poor, each and every congregation wanting to exist in Maine needs to exist. There is no choice—it’s not about choice. It’s about keeping all of our body parts healthy (not just alive) because we value the function of each one, even though its function may be different from our own.

Talking about money stirs up many tensions within and among us. Money seems to be our shame, our glory, our worry. In excess, any of these feelings dampen the brilliance of the grace of our gifts, as do excessive pride and covetousness. Because we have come to understand the value of each and every member of our body, we became committed to our effort to share the brilliance of our gifts with one another in a positive light. Not all of our members are gifted with abundant financial resources. As an entire body, however, we have an abundance of such gifts to share with one another. Our goal has been to seek a creative solution for the sharing of financial resources throughout the Diocese of Maine. We are aware that any plan will require our members to become better stewards of each of their gifts. Our hope is that the journey that was begun with a financial focus will continue with a growing awareness of the many gifts in this Diocese. So we present for consideration at Convention in October, not one recommendation for raising revenue to support the health of our oneness, but four options. We also ask that you consider not only the impact each option has on your own congregation, but that you also take the time to discern your own grace-given gift and be assured that you are using it to the best of your ability to support the oneness of our body in Christ.

Impact of each formula during Year 2003. 

To reach the full $1,339,659 a flat rate of 17.1% will be required. 

The Three Step Formula: An initial percentage (the "starting percentage") is applied to the first $50,000 of NOI; a percentage two (2) percentage points above the starting percentage is applied to the next $50,000 of NOI; and a percentage six (6) percentage points above the starting percentage is applied to all NOI in excess of $100,000. The starting percentage shall be determined by using this formula to raise the total funds specified in the annual budget to be provided by the annual assessment upon congregations.

Under the Three-Step Formula, 21 of the 66 congregations enjoy an effective assessment rate of 14.3%. Another 29 enjoy an effective assessment rate below or at the current 17.1% rate. This leaves 16 with effective rates above the current rate. Of these, however, nearly three-quarters (11) incur effective rates of 18% or more, topping out with the Cathedral in Portland at 19%.

The 5% on the First $10,000 of NOI Formula: (a) $10,000 of NOI of each congregation is multiplied by 5%. (b) All reported NOI in excess of $10,000 for each congregation is multiplied by a percent sufficient so the combination of each of these steps applied to all congregations in the Diocese raises the total funds specified by the annual budget.

Under the 5% on the 1st $10,000 of NOI Formula, 37 congregations (56%) enjoy a decline in the assessment, with three experiencing a reduction of 71%. Another 16 have a reduction of between 10.8% and 47.2%. Twenty-nine congregations incur an increase in the annual assessment, but for 19 congregations the increase is held to less than 3%. The largest increases will be at Bangor, Brunswick and the Cathedral, ranging between 3.8% and 4.3%.

The Multiple Strengths Formula:

• 10% of the total amount of the annual budget funded by assessment is raised by (a) dividing 10% of such amount by the total number of communicants-in-good standing reported on the Parochial Report for the calendar year ending one year prior to the start of the budget year for all congregations in the Diocese to establish a charge per communicant-in-good standing; and (b) multiplying that dollar amount by the number of communicants-in-good standing reported by each congregation on its applicable parochial report.
• 5% of the total amount of the annual budget funded by assessment is raised by (a) dividing 5% of such amount by the total number of average Sunday attendees reported on the applicable parochial report for all congregations in the Diocese to establish a charge per average Sunday attendee; and (b) multiplying that dollar amount by the number of average Sunday attendees reported by each congregation on its applicable parochial report.
• The first $20,000 of NOI reported by each congregation is multiplied by 5%.
• All reported NOI in excess of $20,000 of each congregation is multiplied by a percent sufficient so the combination of each of these steps applied to all congregations in the Diocese raises the total funds specified by the annual budget.

Under the Multiple Strengths Formula, nearly two-thirds of the Diocese, 42 congregations, experiences a reduction in the annual assessment ranging between 0.1% up to 50.9%. One congregation has no change and the other 23 incur an increase in the annual assessment ranging between 0.1% and 38.5%. The largest percentage increase is imposed on the congregation with the smallest NOI, namely Messiah in Dexter. St. Paul's in Brunswick experiences an increase of 11.1%, while St. Alban's in Cape Elizabeth has an increase of 13.7%.

A LETTER FOR SPRING, 2002

Easter Joy and the blessings of renewed life in Christ!

We are very thankful for the very active participation of all who were able to engage in very special conversations at three meetings to which our task force invited about seventy participants from nearly half of the congregations in Maine, well representing large-, small- and medium-sized congregations. We desired honest feedback and that is what we received. We asked for all who came to consider themselves joined with us in the search for solutions and we believe many have made valuable and faithful efforts to help.

My report today is that a striking pattern has emerged in our work. If it has not been obvious before, it certainly is before us in bold relief now. On the one hand, we recognize that there is a high level of enthusiasm for the work of our Diocese, for our Bishop, for the creative and committed people who serve the tasks of staff, commissions and other forms of our program and outreach. On the other hand, we find that our Diocese is not as well organized as it should be for the financial support of this mission. Our task force was created by the Diocesan Convention of 1999 due to concerns about the way that the assessments each parish gives are determined. But there is there is no avoiding the fact that funding the mission that we share in Maine pertains to many forces, concepts and habits other than assessments.

The work of our task force, therefore, overlaps and links up with several other very important currents that are actively rushing forward right now. A very strong group is addressing the raising of resources through a capital campaign. A very strong group is addressing the securing of adequate compensation for clergy leadership. The need is urgent for creative efforts to increase faithful stewardship in each congregation. Attention is now being given to organizing the diocesan budget in such a way that we all can embrace it as an exciting expression of missionary commitment in the name of Christ. And, above all, many of us are discovering what it means to be a truly inter-related family—that is, the Diocese of Maine as one church body with many varied and equally important parts.

Since our task force’s work is one of several efforts to fund the larger mission that we share as Episcopalians in Maine, we recognize that the question of method for determining assessments will be open to review for many years to come, as other efforts strengthen support in other ways. At this point, therefore, I share some conclusions we have reached as a result of the three meetings we held. I hope that more dialogue will take place in six more gatherings that are going to take place in the next few weeks. In each of the five regional meetings members of our task force will participate, and in the convocation on May 4 at the Bangor Theological Seminary we will participate in a workshop.

Sorting out all of the feedback and inquiry of the past few weeks, we are convinced that the present method of a single percentage for all assessments has a very high negative impact on congregations with smaller financial resources. We are offering, therefore, some other models for calculating assessments. These achieve some relief for smaller congregations and there is less increase in assessment for larger congregations than resulted in previous models that we reviewed. They can be found on our web site. Note that our models continue to use "Net Operating Income" of the parochial report as the basis of calculation. We looked again into the challenges to this concept and have found no other way of doing it that comes as close to being universally fair. This has been the experience of all other dioceses. Also, a word about the question of voluntary giving of at least a portion of what has heretofore been an assessment calculated on a single percentage of parish NOI. The experience around the Episcopal dioceses all around our country has been consistent. Only those one or two dioceses that have enormous endowment funds or investment income that can support inevitable shortfalls have been able to give parishes the option of supporting diocesan program on a voluntary basis without suffering destructive cutbacks. We do not see how the Diocese of Maine can go in that direction at the present time.

We urge you to look at these models, discuss them and continue the search with us for ways that we can all embrace. We sincerely hope that you will continue to pledge your good will and genuine commitment to this search that we together are making. And, please, actively participate in one of the regional meetings and in the May 4 convocation. We can keep up the dialogue in each of those gatherings.

I once again offer genuine gratitude to you and prayers for your ministries.

In Christ,

Rev. Ralph Moore Chair,
 Task Force on Assessment Review

A Report from the Task Force on Assessment Review
October 2001
"Driven by a strong vision of mission"

April 2001 Statement from the Task Force

The current assessment rate is applied equally to all parishes and missions in the Diocese. This means of raising revenue is, in essence, a flat tax, and regressive in nature. The Diocese is making an implicit assumption that this structure is fair. Study, prayer and thought may reveal whether this is an appropriate assumption for a Diocese as economically diverse as ours.

Assessment Review Task Force tackles the big job
October 2000

by the Rev. Ralph Moore, Chair

We invite the questions, comments and suggestions of all.

Members of the Task Force on Assessment Review

Members of the task force welcome comments, questions and suggestions.

The Rev. Ralph Moore, Chair
Mr. George Coleman
Ms Belle Traver
Mr. Bob Taylor
The Rev. Canon Linton Studdiford
Mr. Alan Shaver
Ms Linda Roebuck
Ms. Laurie Kazilionis
The Rev. Don Hastings
Mr. Bill Clark
The Rev. Edwin Cox
Mr. Peter Bickford
Ms Maribeth Barney
Mr. Dick Salisbury
Mr. Ken Barrett

The following special rule shall govern the consideration of Resolution 7:
At 11 a.m. on Friday, October. 25, when Resolution 7 is submitted to the Convention by the Resolutions Committee, the Convention will form
itself into a Committee of the Whole, and the Convention will stand in recess until the Committee of the Whole has completed its work. The Committee of the Whole will proceed according to the following:

The first item of business will be the election of a Chair of the Committee. The Bishop will act as Chair of the Committee until a Chair has been elected.

After the election of a Chair, the Committee will hear presentations of each of the four alternatives contained in the Resolution. Each alternative will be presented by a member of the Task Force in a presentation lasting no more than 3 minutes. Following each presentation, questions for clarification only (not debate) will be allowed on that alternative for a period of 10 minutes. No speaker will be allowed more than 2 minutes to speak, and no speaker will be allowed to speak twice to any one alternative if any person who has not spoken desires to speak. No motion to amend or modify any alternative, or to offer any new alternative, will be in order.

After the fourth alternative has been presented and the questioning period ended, a straw vote will be taken by means of a written ballot containing all four alternatives. After the ballots have been collected, the Committee will be in recess until 1:30 pm. The Chair will endeavor during the recess to have the straw vote ballots counted and the results published. At 1:30 p.m. the Chair will call the Committee of the Whole to order. Debate on all four alternatives will be allowed for a period of 30 minutes, subject to the speaker limitations above. No motion to modify or amend any alternative, or to offer a new alternative, will be in order.

Upon completion of debate, the Committee will proceed with voting to determine which of the four alternatives the Committee will recommend to the Convention. All votes will be by written ballot. All four alternatives will be on the first ballot. The first alternative that receives a majority vote of those voting will be the alternative recommended to the Convention. If no alternative receives a majority vote on the first ballot, a second ballot, on which all four alternatives are listed, will be cast.

If no alternative receives a majority vote on the second ballot, that alternative receiving the fewest number of votes will be eliminated and a third ballot will be cast for the remaining three alternatives. If no alternative receives a majority vote on the third ballot, that alternative receiving the fewest number of votes will be eliminated and a fourth ballot will be cast for the remaining two alternatives. That alternative receiving the higher number of votes on the fourth ballot will be the alternative recommended to the Convention by the Committee.

After the balloting has been completed, the Chair will adjourn the Committee of the Whole, and the Bishop will reconvene the Convention. The Bishop will call the Convention to order and ask the Chair of the Committee of the Whole to report to the Convention the recommendation of the Committee. The Committee Chair will report to the Convention that the Committee recommends approval of the alternative determined by the Committee.

The Bishop will then ask for a vote of the Convention to accept the report of the Committee and approve the alternative contained in that report. If a majority of the Convention votes in favor, it will constitute the action of the Convention.

RE: To Select an Assessment Formula by which to raise funds for the Diocese of Maine - Central Diocesan Fund from congregations.

SUBMITTED BY: Task Force on Assessment Review

RESOLVED that this Convention select one of the formulas described below, to be applied beginning with calendar year 2003, as the means by which funds will be raised from the congregations in the Diocese sufficient to fulfill the requirements of the Central Diocesan Fund Budget adopted by the Convention.

BE IT FURTHER RESOLVED that this assessment will be based, at least in part, upon a percentage of the total Normal Operating Income (Parochial Report Line A) reported for the year two years prior to the year to which the assessment is applied for each congregation.

BE IT FURTHER RESOLVED that the Convention select one of the following formulas:

1. The Three Step Formula: An initial percentage (the "starting percentage") is applied to the first $50,000 of Normal Operating Income (NOI) as reported on the applicable Parochial Report; a percentage two (2) percentage points above the starting percentage is applied to the next $50,000 of NOI; and a percentage six (6) percentage points above the starting percentage is applied to all NOI in excess of $100,000. The starting percentage shall be determined by using this formula to raise the total funds specified in the annual budget to be provided by the annual assessment upon congregations.

2. The Multiple Strengths Formula:

· 10% of the total amount of the annual budget to be funded by assessment upon congregations shall be raised by (a) dividing 10% of such amount by the total number of communicants-in-good standing reported on the applicable parochial report for all congregations in the Diocese to establish a charge per communicant-in-good standing; and (b) multiplying that charge by the number of communicants-in-good standing reported by each congregation on its applicable parochial report.

· 5% of the total amount of the annual budget to be funded by assessment upon congregations shall be raised by (a) dividing 5% of such amount by the total number of average Sunday attendees reported on the applicable parochial report for all congregations in the Diocese to establish a charge per average Sunday attendee; and (b) multiplying that charge by the number of average Sunday attendees reported by each congregation on its applicable parochial report.

· The first $20,000 of NOI reported by each congregation on the applicable parochial report will be multiplied by 5%.

· All reported NOI in excess of $20,000 of each congregation will be multiplied by a percent sufficient so the combination of each of these steps applied to all congregations in the Diocese will raise the total funds specified by the annual budget.

3. The 5% on the First $10,000 of NOI Formula: (a) First $10,000 of NOI reported by each congregation on the applicable parochial report will be multiplied by 5%. (b) All reported NOI in excess of $10,000 for each congregation will be multiplied by a percent sufficient so the combination of each of these steps applied to all congregations in the Diocese will raise the total funds specified by the annual budget.

4. Level Percentage (Current Method): The NOI reported by the congregation on the Parochial Report for the calendar year ending one year prior to the start of the budget year will be multiplied by percentage sufficient to raise the total funds specified by the annual budget.

BE IT FURTHER RESOLVED that if no one of the formulas described above receives approval by at least a simple majority of the delegates at the Convention the existing method for determining the annual assess 

ment, established by Convention in 1997, shall remain in effect until further action of the Diocese in Convention assembled shall so determine.

BE IT FURTHER RESOLVED that whichever formula receives approval by at least a simple majority of the delegates at the Convention shall remain in effect until further action of the Diocese in Convention assembled shall so determine.

At Convention in 1999 a resolution was adopted requesting the Bishop to appoint a task force to examine and study the means by which the Diocese raises funds. A Task Force on Assessment Review was appointed by the Bishop and has engaged in study, research, prayer, analyses and discussion since it was first established. The Task Force reported to Convention in 2000 and 2001, and by the terms of the resolution in 1999, was directed to return to Convention in 2002 with its report and recommendations.

The Task Force has presented to the Diocese and Convention three different formulas by which the annual assessment on Congregations might be applied. The Task Force has declined to make a determination, or to recommend to the Convention which of the three is the most "fair". The Task Force believes that is the responsibility of the Diocese assembled in Convention.

The Task Force has presented to the Diocese in a number of meetings over the past year, and in materials distributed and posted on the Diocesan website, examples of how each of the three formulas would affect every congregation in the Diocese, and compared each of them to the existing formula that has been in use since 1997. The delegates from each congregation can not only determine how each formula would impact his or her congregation, but can also discern how each impacts every other congregation in the Diocese. It is in that careful examination and comparison that a determination of what is most "fair" lies.

Finally, it should be understood that the starting percentage in the three-step formula and the final percentages used in both the other two formulas are not fixed or unchanging. As each year presents the Diocese with a new budget and an estimated total amount to be raised from congregations, a calculation will have to be made to determine what those percentages must be to raise the funds required.

The Task Force on Assessment Review recognizes adoption of a new assessment formula may impose an initial heavy burden on a few congregations in the Diocese. Therefore, the Task Force suggests that Convention, after formally selecting an assessment formula for calendar year 2003, consider adopting a transition plan to be available to congregations that may need some assistance in adjusting to the new formula.

The Plan proposed by the Task Force is as follows:

• The Diocesan budget for calendar year 2003 include a line providing $5,000 for transition assistance.

• Relief from the full impact of the new assessment formula would be available to congregations meeting the following criteria:

1. The increase in total annual Diocesan assessment – over what the assessment would have been had there be no change in the formula – must be the greater of either (a) five percent (5%) of what the assessment would have been under the old system, or (b) $2,500.

2. Application for relief from the full burden of the new assessment formula must be made in writing by a congregation seeking relief on or before April 30, 2003, thereby being in time for the regular May meeting of Diocesan Council.

• The application for relief will be reviewed initially by the Diocesan Finance Committee which will recommend to Diocesan Council either approval, or disapproval.

• The largest amount of relief that may be granted to any congregation seeking such will be only on the portion of the Diocesan assessment that exceeds the greater of five percent (5%) or $2,500. [For example, if the total increase in annual assessment due to the change in the formula is $4,500, the maximum relief that could be granted is $2,000.]

• Decision by Diocesan Council is final and not subject to appeal.

• In the event the aggregate total of the applications for relief is greater than $5,000, the relief granted will, if necessary, be pro rated among the applicants approved in proportion each applicant’s request for relief bears to the aggregate total of all applications for relief in accordance with procedures determined by Diocesan Council.

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