The diocese of Toronto, feeling the sting from the slump in financial markets, is facing a gap this year of $750,000 between anticipated income and the budget forecast approved by synod in 2001. The diocese has narrowed the gap to $400,000 by stopping $350,000 in planned expenditures this year. A group of clergy and laity will look at making further cuts, but they will have to be weighed against the diocese's ability to carry out its mission. "Synod expects us to have balanced budgets," said Alison Knight, chief administrative officer.