ELCA NEWS SERVICE
June 26, 2009
ELCA Seminaries Cope With, Challenge Economic Climate
09-138-FI
CHICAGO (ELCA) -- As church support lagged in recent
decades, seminaries relied increasingly on endowments and
using investment income to support their operating funds.
Many of those investments retreated in the past year. The
eight seminaries of the Evangelical Lutheran Church in
America (ELCA), their governing boards, faculties and staffs
responded with measures to cope and to plan for the future.
+ The Lutheran School of Theology at Chicago cut
$400,000 in spending from its 2008-2009 budget and another
$1 million from its 2009-2010 budget, eliminating or
suspending indefinitely one faculty and seven staff
positions.
Dr. David Wegge, LSTC board chair, said the cuts will
make the seminary "less dependent on earnings from its
endowment -- earnings it could no longer count on in these
times."
In addition to layoffs, LSTC cut the salaries of
non-student personnel up to 6 percent. "I am grateful that
my colleagues at LSTC understand how serious the economic
downturn is for all seminaries," said the Rev. James Kenneth
Echols, LSTC president.
+ Luther Seminary, St. Paul, Minn., cut spending.
Seminary executives will take a pay cut, and some paid staff
will not receive a pay increase this year. Five staff members
accepted voluntary retirement. Four positions were eliminated,
resulting in four employees being laid off. The seminary
eliminated six of its 13 master's of arts degree programs.
A task force is looking at possible changes in health benefits
to reduce seminary spending.
"We ask that you keep in your prayers those who are
directly affected by this restructuring at Luther," said
the Rev. Richard H. Bliese, president, Luther Seminary.
+ Lutheran Theological Southern Seminary (LTSS),
Columbia, S.C., reduced operating expenses by eliminating
five support staff positions -- one by attrition -- among
other actions. A majority of faculty and staff agreed to
salary and pension reductions. The seminary is dealing
with debt incurred by building student housing in 2005
and is renegotiating its financing arrangements. Tuition
and rent did not change for the coming academic year.
"The response from alumni, parishioners and
congregations has been overwhelmingly positive and
extraordinarily generous," said the Rev. Marcus J.
Miller, LTSS president.
+ Lutheran Theological Seminary at Gettysburg, Pa.,
adopted a budget for 2009-2010 similar to its previous
budget. No personnel cuts were required by the budget
process. Salaries will not increase. The search to fill
one position was suspended, as were some capital
projects. Tuition increased by 5 percent.
Donors made it possible for the seminary to offer
more scholarships to offset the tuition increase. The
seminary also benefits from having no heavy debt load.
+ Trinity Lutheran Seminary, Columbus, Ohio,
reduced its budget for 2009-2010. The Rev. Mark R.
Ramseth, Trinity president, said the changes came
"after careful consideration and review of each seminary
department that included a five-year strategic plan of
response to ongoing economic challenges."
The new budget includes "a single-digit reduction"
in all salaries. All staff and faculty positions were
sustained.
+ Wartburg Theological Seminary, Dubuque, Iowa, cut
$700,000 in spending from its budget at the end of 2008.
Rita Dudley, board chair, said Wartburg is now in a
position to look beyond current economic challenges. The
board endorsed a five-year capital campaign to raise $20
million and increase its donor base by 5,000 supporters.
"This can look like a challenging time for such a
campaign, but we know that thousands believe in Wartburg.
We thank God for this new energy to move forward," said
the Rev. Duane H. Larson, Wartburg president.
+ The Lutheran Theological Seminary at Philadelphia
reduced staff positions in January 2008, while preparing
its 2008-2009 budget, and it cut another $1 million from
its 2009-2010 budget. It is considering adjustments to
salaries. The seminary decided not to draw from its
endowment, and is giving priority to financial support
for students with the goal of saddling graduates with as
little personal debt as possible.
+ Pacific Lutheran Theological Seminary (PLTS),
Berkeley, Calif., balanced its budget for the new fiscal
year by temporarily cutting salaried wages by 5 percent,
reducing the number of student workers and not filling
vacant permanent positions. PLTS did fund one new
position in its advancement department. Debora Ow, vice
president of finance and operations, said the board felt
this was not the time to restrict the seminary's ability
to raise donations.
-- -- --
Information about the eight seminaries is at
http://tinyurl.com/mtcxep on the ELCA Web site.
Related Stories:
ELCA's Wartburg Theological Seminary Restructures Positions,
Programs
http://archive.ELCA.org/news/releases.asp?a=3996
ELCA Seminary Presidents, Deans Address Current Economic
Challenges
http://archive.ELCA.org/news/releases.asp?a=4001
For information contact:
John Brooks, Director (773) 380-2958 or [log in to unmask]
http://www.elca.org/news
ELCA News Blog: http://www.elca.org/news/blog
