ELCA NEWS SERVICE April 21, 2004 ELCA Council Cuts Spending, Staff, Programs 04-071-FI CHICAGO (ELCA) -- The Church Council of the Evangelical Lutheran Church in America (ELCA) authorized the churchwide organization to spend $80.4 million this fiscal year, down $1.1 million from the $81.5 million it authorized for 2004 at its November 2003 meeting. As a result of the action, 20 positions in the churchwide organization were eliminated, directly affecting eight employees in those positions, and the funding for some programs was reduced or eliminated, said the Rev. Charles S. Miller, executive for administration and executive assistant to the ELCA presiding bishop. 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 April 17-18. Assemblies are held every other year; the next is Aug. 8-14, 2005, in Orlando, Fla. Adjustments to the spending authorization included reduced churchwide unit spending of $3.0 million, an accounting reclassification that increased both income and expenses by $1.2 million, and an increase of $.7 million for a new mission funding initiative, said Linda J. Brown, council member, Fargo, N.D. Brown reported to the council in her role as chair of the council's Budget and Finance Committee. This latest spending limit was prompted by churchwide income estimates for 2004 being revised downward since last November due mainly to declines in mission- support income from synods, said Christina Jackson-Skelton, ELCA treasurer. About 80 percent of churchwide unrestricted operating revenue is mission support from the synods, she said. In March the ELCA Conference of Bishops agreed to "encourage" each of the church's synods to maintain or increase their current giving percentage of mission support to the churchwide organization for fiscal 2004 and 2005. The Rev. Stephen P. Bouman, bishop of the ELCA Metropolitan New York Synod, told the council that synods are experiencing a drop in revenue, too. The percentage of mission support from synods to churchwide may remain the same, but the dollar amount may change, he said. Bouman is one of nine synod bishops who serve as advisors to the council. The ELCA 2003 Churchwide Assembly adopted budgets for fiscal 2004 and 2005. For 2004 the assembly approved a budget proposal of $84.31 million in current fund income and a World Hunger Program budget proposal of $16.25 million. The ELCA's fiscal year begins on Feb. 1. At its meeting in November 2003, the council authorized spending $81.5 million instead of the $84.31 million budgeted for 2004. That action resulted in the elimination of 25 full-time equivalent positions, directly affecting 13 employees in those positions, elimination of funding for some programs, and no pay increases for churchwide employees, mission developers and missionaries in 2004. No change was expected in 2004 giving to the ELCA World Hunger Appeal, and the council left that program's spending authorization at the $16.25 million budgeted for 2004. Process to Address Mission Support Reductions In a separate but related action, the council asked that the ELCA Office of the Presiding Bishop develop and propose a process to address the reductions in mission support. It asked the office to consult with the Division for Congregational Ministries, Department for Synodical Relations and Conference of Bishops in studying mission-support plans of congregations, synods and churchwide units. The council asked that the process "reflect mutual consultation, mutual agreement and mutual affirmation." It asked also that the office bring a report and possible recommendations to the council's meeting in November. For information contact: John Brooks, Director (773) 380-2958 or [log in to unmask] http://www.elca.org/news