And so now we have a three ring circus. The Standing Committee has its own website (linked off of the Diocesan website) to counter the spin from Bennison, with their own lawyer. Then there is the new diocesan chancellor Francis Helminiski. Bill Bullitt (former chancellor) is working voluntarily with the new chancellor on transitional matters but beyond that is contributing to the general diocesan dialogue strictly as an active member of the diocese, VirtueOnline was told. Bennison may yet have to retain his own personal lawyer because a diocesan lawyer has a conflict of interest in being the bishop's personal chancellor as well as speaking for the diocese. Finally we have a group of Concerned Episcopalians (conservative and liberal clergy and laity) who have their own website and lawyer Spencer Frank working for them, and it's off to court we go.

Bennison, increasingly under pressure to resign, put out yet another letter this week saying that there is much going on in the diocese that is difficult, painful and confusing. "I believe that all who are concerned about our life and work as a diocese are good hard-working committed servants of Christ and his church. Admittedly, we have differing values and visions for our church. To deliberate about our direction as a community has been the purpose of the Diocesan Council meetings of November 19, December 15, January 12, February 9, and March 9, and of the pre-convention deanery meetings last month. I was present for all those meetings and was deeply impressed by the openness, reasonableness, articulateness, generosity, civility and democratic spirit of the debate. To engage in similar deliberation will be our purpose on March 25."

Bennison said the debate will be about the 2006 Program Budget Resolutions. "My overriding budget concern is that we fully fund our pledge to the wider Episcopal Church." Bennison cited two reasons. "First, it's a duty we assumed when we approved the funding formula at General Convention. Second, at a time when some other dioceses are reducing their giving because they oppose the Episcopal Church's direction, we will cause great harm if we, one of its wealthier dioceses and one that supports its direction, fail to meet our obligation."

Bennison produced another note from the Wapiti Board of Directors addressing questions that have been raised in recent Diocesan Council and pre-convention deanery meetings. Wrote Bennison: "It is being sent, not to influence a change in the funding for Wapiti in the proposed Program Budget, but simply to inform you of the Board's efforts since last November's Convention to revise the site plan and scale back the construction program at Wapiti."

Sources tell VirtueOnline that the camp is a financially losing proposition and may have to be mothballed as part of the financial overhaul of the diocese. "It's losing money, there is no way it can stay open without a major injection of money," said a source.

Bennison then blasted a document setting forth recommendations to the Standing Committee and himself in response to a request for a process of mediation made to the Right Reverend Clay Matthews of the Office of Pastoral Development following the Committee's request that he step down.

"The document contains a significant number of errors and inaccuracies of fact and interpretation. If I had been permitted to be present when Bishop Matthews listened to the Concerned Pennsylvania Episcopalians, the deans, and members of the Standing Committee in order to hear or respond to what was said, or had Bishop Matthews listened to a broader segment of our diocese, a fairer and more balanced assessment of our reality may have emerged, and Bishop Matthews may have concluded he could be of further help to us," Bennison whined.

"As expressed in my letter of January 26 where I stated my decision to continue my ministry in the diocese, I said that I would enter into a rigorous long-term process to address our issues and work for reconciliation. I reiterate and stand by that commitment."

VirtueOnline has been told that reconciliation is now impossible with Bennison and the purpose of mediation is simply to work out the financial terms of his departure.

When Bennison was a priest at St. Luke's in Atlanta he was fired there as well. A former parishioner said the issues were not theology, morality or stealing money, but simply because he was so disagreeable and alienated everybody personally.

"The vestry demanded his resignation and they were supported by the revisionist bishop Frank Allen. Bennison refused to go but was persuaded by the withdrawal of his salary to accept a generous parachute. At the point he moved on to Episcopal Divinity School in Cambridge, Massachusetts," said the source.

END

The Program Budget Deficit: The Tip of the Iceberg!

By Bill Powell, Former DIOPA Controller and Joe Suprenuk, Former DIOPA Interim Controller.

March 17th, 2006

Since the Diocesan Convention’s rejection of a program budget calling for a $1.3 million deficit (and use of Diocesan savings) in November, 2005, there has been exclusive focus on the program budget deficit without regard for the Diocesan-wide deficit we face in 2006.

Don’t get us wrong, the program budget is important. However, it only accounted for less than 45% of the total Diocesan deficit in 2005. Piecing snippets of information together (as none is available on a Diocesan-wide basis) we conclude the Diocese over-spent its cash revenue in 2005 by $4.7 million. (if you have the stomach for numbers our calculations is are on the next page). There are DIOPA reports informing us that the 2005 program budget deficit was approximately $2.0 million. If the 2005 program budget deficit was approximately $2.0 million, one should ask, “where did the rest of the money go (the difference between $4.7 and $2.0 million)?” Good question. The answer is the $2.7 million of deficits not incurred through the program budget were incurred by unbudgeted expenditures not reported against the program budget, some excessive legal fees in the episcopate budget, and expenditures on Wapiti ‘brick and mortar’ and Wapiti salaries and operating expenses.

The point we are trying to make is that even if the program budget has a “0” (zero) deficit in 2006 and if there is no plan (and we haven’t seen one) to address our non-program budget spending habits DIOPA will need to come up with $2.7 million in cash in 2006.
If a program budget deficit of $ 950,000 is approved for 2006, the Diocese will have to find nearly $3.7MM in cash to fund this deficit. Currently, it is believed we have at most $ 300,000 in available cash to fund the Diocesan-wide deficit.-less than 10% of our needs.

You probably are asking yourself, “surely, someone would not permit this level of spending if these deficits would occur”. Our response is our Diocese has developed a culture of spending first, then scrambling to raise the necessary cash. This is evident with the Wapiti, Holy Experiment, venture where we committed to spend $30 million while we only had $3 million in cash to appropriately fund this project.

What can you do? Start by calling your Diocesan delegates and let them know what you think. Some questions and issues which must be raised are:

(1) Will the Diocesan Council over-ride the convention-approved budgets, as they have in the past two years, granting the Bishop several hundred thousand of additional spending slack?
(2) We need a Diocesan-wide budget of the total deficit for 2006 including all entities such as Wapiti so can know our total exposure
(3) How much will be spent on Wapiti brick and mortar (capital) in 2006?
(4) How much will be spent of Wapiti salaries and operating expenses totally in 2006 (not just the amount included in the program budget)?
(5) We need to eliminate the ‘unbudgeted’ category of expenses which eliminates
accountability for spending and allows million dollar deficits to fly undetected
under the radar.

Total DIOPA-Wide Cash Deficit Calculation 2005
Millions of Dollars
2005

Withdrawals from Savings: Millions of $

To fund Program Budget + Unbudgeted Expenses 2.75
To fund Wapiti as a Grant 0.75 Source: Jan CFO report
To fund Operations through year end 0.75
To fund Wapiti through Year end 0.15
Total Withdrawn from savings 4.40 Sub Total

Decrease of Cash on Hand 0.30 Feb CFO report p 30 & 2004 audited financial statements
Increase of amount owed 0.04 Feb CFO report p 30 & 2004 audited financial statements
Net cash deficit 4.74 Total Net Cash Deficit