ELCA NEWS SERVICE November 18, 2003 ELCA Council Sets 2004 Churchwide Spending; Programs, Staff Reduced 03-208-JB CHARLOTTE, N.C. (ELCA) -- The Church Council of the Evangelical Lutheran Church in America (ELCA) adopted a 2004 current-fund spending authorization of $81.5 million, a reduction from the $84.3 million budget adopted by the 2003 ELCA Churchwide Assembly. As a result, 25 positions within the ELCA churchwide organization are directly affected, including 13 employees who were in those positions. In addition, funding for some programs will be eliminated, and there will be no pay increases for churchwide employees, mission developers and missionaries in 2004. The Church Council is the ELCA's board of directors and serves as the legislative authority of the church between churchwide assemblies. The council met here Nov. 13-16 at the invitation of the ELCA North Carolina Synod, and joined in a celebration of the synod's 200th anniversary Nov. 15 at Wake Forest University, Winston-Salem, N.C. Churchwide assemblies are held every other year; the next is Aug. 8-14, 2005, in Orlando, Fla. The council adopted a spending authorization of $16.25 million for the ELCA World Hunger Program for 2004 -- the same as the budget adopted by the churchwide assembly. The ELCA's 2004 fiscal year begins Feb. 1. In a report to the council, Linda J. Brown, council member and chair of the council's budget and finance committee, Moorhead, Minn., said estimates for 2004 had to be revised from what the churchwide assembly approved. She cited projected declines in two key areas -- mission support from congregations through synods and investment income -- as the reasons to revise current fund spending down $2.8 million. The ELCA's 10,721 congregations are organized into 65 synods across the United States and Caribbean. Mission support for 2004 is projected to be $67.2 million, a decline of nearly $2.3 million, and investment income is projected to be $900,000, a $400,000 decline, she said. A "short-term response" was needed to address the revised estimates, Brown said. She also said she is confident that a reorganization of the ELCA churchwide offices, expected in about one year, will help its overall health. To meet the income projections, the presiding bishop's planning team -- made up of churchwide officers and executive directors of churchwide units -- agreed to reduce spending in each unit by 3.41 percent, said the Rev. Charles S. Miller, executive for administration and executive assistant to the presiding bishop, ELCA Office of the Presiding Bishop. Reductions in programs and personnel, when necessary, were to be accomplished with the church's strategic directions and priorities in mind, he said. Miller explained that the equivalent of 20.05 full-time positions will be eliminated as a result of the council's action. Eight employees were affected by involuntary terminations or reductions in full-time status to part-time; five employees chose to leave or offered to become part-time employees, he said. The remaining positions eliminated were vacant, he said. To achieve the $2.8 million spending reduction for 2004, $1.3 million was saved through the policy of no salary increases, $1 million was saved through position reductions, and $500,000 was saved through specific program cuts, Miller said. Those cuts included travel costs, grants for specific ministries and elimination of programs. In a second related action, the council set aside $100,000 in a designated fund from the church's general treasury to cover "separation pay and accrued, unused vacation days for staff whose positions may be eliminated" in 2004. Any money remaining in the fund after Feb. 29, 2004 is to be returned to the general treasury, the council said. A much more comprehensive plan to reorganize the churchwide organization and address declines in income was announced Sept. 15 by the Office of the Presiding Bishop. However, the Rev. Mark S. Hanson, ELCA presiding bishop, withdrew the plan Oct. 18 after heavy criticism and concerns about the process were raised throughout the church. But the projected income declines for 2004 remained, necessitating the across-the-board reductions. Following their action, some council members wanted to talk about how to reverse the decline in mission support to the church. "I would welcome that," said Hanson. "Our mission is overshadowed by these cuts. We need to hold one another accountable for finances and mission. You (council members) are key to helping turn this around." When the church's elected council members talk to elected leaders in synods about mission support funds, those conversations are "different" than similar conversations between churchwide and synod staff, Hanson said. "Are you exercising fully your responsibility as church council elected leaders?" Hanson asked. "I just want to push you a little bit here." "I feel that we have allowed staff to bear the burden of this," said Earl L. Mummert, council member, Harrisburg, Pa. "As a council, we have not assumed responsibility for this." Synod bishops and council members should work together to "solve this problem," he said. "We have a collective responsibility to work with the [presiding] bishop and others to effect a plan about how we do our business," said Grieg L. Anderson, council member, Portland, Ore. Janet Thompson, council member and chair of the council's planning and evaluation committee, Eagan, Minn., said the committee already plans to bring a plan to the council in April to address synodical-churchwide consultations and ongoing contact as they apply to mission support concerns. Treasurer Reports 'Disappointing' 2003 Financial Results Through September For the current fiscal year through September 2003, $2 million less than was anticipated was contributed to the ELCA churchwide organization, said Christina Jackson-Skelton, ELCA treasurer. Most of the loss was attributed to a drop in mission support from congregations through synods and investment income, she reported. Mission support through September was $40.8 million, a decrease of $1.4 million compared to one year ago, and investment income was off $500,000 from the same time one year ago, Jackson-Skelton said. Mission support from "many, many synods" is down, the treasurer said, but she added she is still hopeful the churchwide organization can close the fiscal year Jan. 31 with little or no operating deficit as a result of careful spending. "Our focus at this point through the end of the year is on mission support," Jackson-Skelton said. By contrast, the ELCA World Hunger Appeal is "having a good year," she said. Contributions through September totaled $7.8 million, an increase of $500,000 from the same period in 2002. What has helped was a project of the ELCA Youth Gathering this past summer to raise funds for world hunger programs. The project contributed more than $700,000 to the World Hunger and Stand With Africa appeals, she said. Jackson-Skelton also noted that the overall performance of the ELCA's Mission Investment Fund (MIF) through September "exceeded our expectations." The MIF assists ELCA congregations and related institutions by providing building funds through low- interest loans. Lower rates and more loan availability in 2003 have benefited congregations, she said. For information contact: John Brooks, Director (773) 380-2958 or [log in to unmask] http://www.elca.org/news